With the implementation of the “last mile” logistics plan, Vietnam’s e-commerce has ushered in an opportunity for development. However, due to weak transportation infrastructure, lack of credit, and the fact that e-commerce investment itself is several years slower than that of countries such as Indonesia, Vietnam’s e-commerce logistics development currently has certain limitations.
1. Low consumer acceptance of third-party logistics
At present, Vietnam’s third-party logistics often encounters a series of problems such as lost items, slow delivery, and unguaranteed service quality, which has caused sellers to distrust third-party logistics. Therefore, many sellers either have their own delivery team, or directly hire delivery staff, or directly outsource to professional logistics companies. Why is Vietnam so dependent on local labor? One of the main reasons is the popularity of cash on delivery payment methods.
2. Inadequate infrastructure
The B2C transaction index of Ho Chi Minh City and Hanoi ranks first and second in the country, respectively, but the narrow roads and traffic jams in these two cities are nightmares for delivery staff. From the main street to the alley, from the alley to the alley, each direction can only accommodate one person, and even small motorcycles find it difficult to shuttle freely. It is very common for cars to compete for the right of way, and small traffic jams are inevitable, not to mention that sometimes even the house numbers can cause confusion. In Vietnam, adjacent house numbers on the same street may be far apart, and two adjacent houses may belong to different streets. The delivery infrastructure is even weaker in small and medium-sized cities and rural areas outside Hanoi and Ho Chi Minh City.
3. Lack of trust between sellers, delivery personnel and logistics agencies
In Vietnam, delivery is a popular job. There are many Facebook group platforms connecting delivery personnel and sellers in different cities, and some groups have even attracted as many as 500,000 delivery personnel.
On Facebook, delivery personnel can not only pick up orders, but also share experiences with each other. It is worth noting that many C2C e-commerce orders in Vietnam are also facilitated through Facebook. Because most deliveries require cash on delivery, independent delivery personnel or express delivery companies must first pay part or all of the money to the seller, and then collect the money from the buyer.
In addition to the need to advance the payment, the delivery process is not easy. In addition to the traffic jams mentioned above, there is also the pressure of fixed delivery deadlines. Delivery drivers are likely to cause traffic accidents in a hurry, or they may not be able to meet the scheduled delivery time, which will cause the goods they deliver to be rejected by customers. Of course, delivery drivers will also encounter other difficult problems, such as delivering perishable goods, and consumers will refuse to accept the goods because they are not fresh.