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The Silicon Review Asia

New e-commerce spending in South-east Asian region is fueling the development of cross border logistics

New e-commerce spending in South-east Asian region is fueling the development of cross border logistics

Technology is rapidly evolving, and Cross-border e-commerce is turning out to be a dynamic market in the logistics area. This is a scene where multiple parties need to form a collaboration to overcome their business hurdles. Achieving full visibility and control over the supply chain will allow the retailers to know what happens on the ground. Customs regulations and import policies are different in every country, and it involves factors like product liability and international payments. The regional cross-border logistics is massively growing in the South-east Asian region, and the new e-commerce spending is fueling it. However, still, there are significant challenges in the smooth flow of goods between ASEAN countries.

The value of goods sold online in the ASEAN region quadrupled in 2015-2018, and a recent e-commerce study by Temasek and Google showed that South-east Asia’s internet economy is now exceeding $100bn. Vietnam, Indonesia, and Thailand are becoming Asia’s biggest e-commerce market, and the most common purchases in this region are clothing, beauty products, and personal care products. The cross-border flow and supply chain must now adopt the Omni-channel logistics strategy to blur the line between e-commerce and traditional purchases. Consumers are demanding more visibility, so the e-sellers must pressurize logistics companies to be more attentive and innovative.


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