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Could Free Shipping Be the Key to Higher Customer Retention?

Dec 16, 2021

Just like many other regions in the world, Southeast Asia’s e-commerce growth took off at an accelerated pace in 2020. Since the pandemic onset, around 70 million additional people have shopped online across countries in Southeast Asia. The number is expected to grow five times in the next five years.

With such amazing growth, there is a huge opportunity for e-commerce brands that are looking to enter the Southeast Asian market. As with expanding into any new market, it is important for retailers to first understand the shopping behavior and preferences of consumers in that market. As important as understanding the shopping behavior and preferences of consumers is, it is also essential that retailers focus on post-purchase and email marketing for better branding and engagement. Email marketing is one of the most commonly used tools for customer retention, which makes it a lot more vulnerable when it comes to hackers and bots. Retail brands can opt for Google DMARC for proper authentication to protect both the customer and their interests.

Additional branding pieces also matter, including using a logo maker for a professional design, naming, business slogan, etc. So, which factors have the most influence on Southeast Asian consumers’ purchasing decisions? 

In this report, we partnered with Rakuten Insight to take a deeper look at consumer behaviors across six SEA countries.

Download the full report with country breakdown here (exclusive to Parcel Monitor members).

More Than Half of Indonesian Shoppers Expect Below 4 Days Delivery Time Even with Free Shipping

55% of shoppers in Southeast Asia’s largest economy, Indonesia, consider up to four days to be the acceptable waiting time to receive their free shipping orders.  Despite these high expectations from Indonesian shoppers, Indonesia seems to be handling these demands pretty well. In the first quarter of 2021, the country had an average of 1.9 days parcel delivery time. 

 Moreover, the outlook of Indonesia’s e-commerce market looks very promising, with revenue projected to reach US$53,808m in 2021. Its e-commerce industry is largely dominated by e-commerce marketplaces such as Tokopedia and Shopee. 

Malaysian Shoppers Are the Most Price Sensitive

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