The E-Commerce Logistics Race Southeast Asia: Which Country Performed Better in Q1 2021?

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This week, we return with more insights on the e-commerce logistics race in Southeast Asia where we will be focusing on Indonesia, Malaysia, Thailand and Singapore! 

Southeast Asia has a booming e-commerce market. In 2020, the region’s e-commerce grew by 35.2%, adding 40 million new Internet users in 2020 resulting in over 70% of the region’s population browsing the Internet. The region’s e-commerce growth also shows no signs of slowing with a forecasted growth of 14.3% this year.

With such a vibrant e-commerce landscape, how have Southeast Asian countries matched up to each other when it comes to e-commerce logistics? 

Which country do you think had faster delivery times? Do you know which country’s shoppers made use of collection points the most? Read on to find out! 

Transit Times Q1 2021: Singapore had the fastest delivery time in the region, while Malaysia had the longest

On the lower end, Singapore and Thailand had transit times of 1.3 and 1.7 days respectively, while Indonesia and Malaysia saw transit times stretching to 2.0 and 2.6 days respectively in Q1 2021. 

Singapore’s top transit time performance in Q1 2021 was likely due to the more controlled COVID-19 situation, with the country entering a new phase of re-opening in December 2020. The country’s Q1 performance this year matched their pre-COVID delivery time of a 1.3 day average in 2019.

Malaysia had the longest delivery time in the region, with their Q1 2021 performance a slight uptick from its H2 2020 transit time of 2.4 days. This was likely attributed to the movement control orders imposed to combat the rising COVID cases early this year.

All countries saw at least a 20% growth in parcel volume during peak season with Indonesia topping the region at a 55% spike

(Note: Peak season for each country varies)

Peak season in Indonesia, Malaysia and Singapore: Ramadan 2021

For Indonesia, Malaysia and Singapore, we used the major shopping holiday of Ramadan in 2021 for our peak season analysis, which saw many Muslim shoppers preparing for Eid al-Fitr at the end of Ramadan. 

During this period, Singapore, Malaysia and Indonesia saw a 35%, 23% and 55% growth in parcel volume respectively.

Reasons for the growth in parcel volume is due to the more robust e-commerce ecosystem targeted towards Muslim consumers in the region, as well as the region having many mobile-first shoppers, making shopping online a lot more accessible during this period in spite of continuing lockdowns. 

Due to the increase in online shopping during Ramadan, transit times across the three countries increased as well. However, Malaysia and Indonesia saw a slightly higher increase in transit time of 20% compared to Singapore’s 16% which is likely due to the reduced work hours and commercial activities during Ramadan in Muslim countries. For example, Malaysia’s courier service firms had shortened their operating hours during Ramadan and Hari Raya, affecting pickup times in the country. 

Peak season in Thailand: Songkran Festival 2021

As for Thailand, the country saw a 34.1% growth in parcel volume during the period of the Songkran festival in April 2021, as well as a 31.9% increase in transit time. As a major shopping holiday in Thailand, this festival saw a surge in downloads for shopping apps last year. 

The festival features huge discounts on products and services online, as well as ‘Splash Sales’ by top marketplaces like Lazada and Shopee. With continued restrictions of the celebration in 2021, coupled with stricter restrictions imposed in April after a sudden surge in COVID cases, these were likely factors that pushed a 34.1% growth in parcel volume and the resultant 31.9% increase in transit time during peak period. 

Singaporean shoppers had the highest use of collection points in Q1 2021 

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