31 longer cheap

18 faster cheap
Based on survey that we conducted, from 50 respondents, there are 39 respondents said that whose drives
them to buy from a particular seller on e-commerce was due to inexpensive products rather than inexpensive
shipping cost.

APPENDIX
Last mile delivery is a term used for transportation of merchandise from the nearest distribution hub to the
final destination, such as a home or business. https://whatis.techtarget.com/definition/last-mile-delivery

REFERENCES
1
de Souza, R., Lau, H.C., Goh, M., Ng, W.S., Tan, P.S., Lindawati, (2016), Retail Precinct Management:
A Case of Commercial Decentralization in Singapore, Transportation Research Procedia, Vol 12, pp. 765
‐776
SHIPPING CONSOLIDATED
Logistics has a very important role in e-commerce. It means not only the last mile delivery of
parcels to customers, but also the overall fulfilment strategies. Costumers want their goods to be delivered
rapidly with neat dan safe packaging. At the same time, the volume of packages that need to be picked,
packed and shipped continues to increase. Furthermore, with a higher volume of e-commerce transactions,
e-commerce also need to regulate the returned and exchanged of goods caused by damage, this caused a
higher shipping cost. This is further worsen last-mile delivery failures. Not all e-commerce businesses can
survive the impact of high delivery cost and high operational cost for delivery to their end customers.
One of the main challenges in e-commerce logistics is the inefficient practice for last-mile logistics.
That is caused by unconsolidated deliveries. The example from unconsolidated deliveries is when the
customers buys 2 goods item from 2 different online stores, they have to make a separate order, and
deliveries are scheduled separately. Customers can not consolidate their goods from 2 different online
stores, so that only one shipment for one order from a different online stores. Hence, the customers need to
take much time waiting to receive each deliveries.
Drone deliveries, even though they are technologically advanced, it can be very complicated to
apply in some geographical regions given the regulations with flight operations and market characteristics.
Although there are some inherent challenges, drones deliveries can open up opportunities for companies to
explore. Drones deliveries can reduce cost of delivery, it will defines as an instant cost saving. It costs
cheaper to operate a fleet of unnamed aerial vehicles than it does a fleet of ground vehicles. Drone deliveries
can also accelerate delivery time, drones will allow retail and e-commerce companies to promise fast
delivery. This, coupled with low shipping costs, adds to the pleasure of customers in the overall shopping
experience and ensures the capture of a higher retail market share. Drones deliveries also have some
disadvantages, such as only being able to reach small radius and Indonesia does not yet have regulations
regarding this matter.
Fulfill the standards of information exchange facilities is very important for technology systems in
e-commerce to work. The evolution of different e-commerce business models, delivery orders from
different warehouses and the merge in-transit process are not very effective so, new standards are called
for. We need to develop an easy to use message standard protocols for all stakeholders, provide common
ways to identify goods so that relevant stakeholders can track their goods until arrive in their home. For this
purpose, the data can be expressed by the barcodes, so it will easier for machine learning to identify the
movement of the goods.
By considering the obstacle above regarding the last-mile logistics for e-commerce, we can tackle
this obstacle with the concept of E-commerce Logistics Management (ELM). ELM aims to collaborate
related stakeholders in order to create effective delivery costs, this solution not only to be profitable for the
customers but also for the companies that serve the e-commerce last mile deliveries.
The ELM concept is inspired by our Retail Precinct Management (RPM) concept that consolidates
deliveries, optimizes the delivery routes and utilizes the loading docks while provides a dynamic
visualization and analytics to help tracking and monitoring of deliveries and traffic flow in a retail precinct,
such as Jurong Lake District1.
The most shipped products are the small package rather than large packages. The shipping
consolidation can group packages from different warehouse that are close to be together in one truck then
the truck will sent the packages into a consolidate destination. Indeed in this case it will take a longer time
for shipping process because we have to wait until truck load is full, so that the packages can be shipped.
But this case will make the shipping process more effective because the logistic partnership only do one
way trip for an area, this can also save in terms of aspects of the fuel from the vehicle so that shipping cost
will be cheaper.
This is the schematic of shipping consolidation, for example in west java, Indonesia
Unconsolidated shipping
Consolidated shipping