How cross-border e-commerce has impacted the traditional supply chain and the sustainability of logistics service providers?

Abstract

Cross-border E-commerce is an emerging business changing the supply chain. Some researches mentioned global internet retail sales is a not-to-be-missed opportunity that has grown over 20% each year since 2005. More than 40% of enterprises are operating cross-border online sales in Europe in 2017. Online and offline retailing are becoming more sophisticated and are forming the new normal in the industry. This study empirically examines the cross-border e-commerce impact to different stakeholders and evaluates the opportunities and challenges of the online business operation. Logistics service providers (LSP), mainly involve warehousing providers, freight forwarding companies, brokers of customs clearance service and local distributors. They take up the important role to handle cross-border delivery. Time, cost and quality are the key factors in order delivery performance. The level of customer satisfaction in online shopping significantly depends on logistics performance. The research will discuss the elements and efforts of logistics service providers to sustain in the market. It highlights technology advancement that enables real-time tracking, offers tailored services, automation and resource management. Qualitative interviews and observation methods are used for data collection, followed by evaluation and discussion. This study will recommend a sustainable model for logistics service providers to cope with the changes from cross-border e-commerce.