In The Future, The Stuff You Buy Online Might Not Be Sent To Your Door

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Remember pre-covid times of Mega Sales in Malaysia where thousands of discount hungry Malaysians would gather at big convention halls and malls for a chance to snag heavily discounted items?

Nowadays, we’re not fighting human traffic and the aunty who bought the last pair of shoes in your size but the internet traffic on e-Commerce platforms when a big sale happens. And instead of the aunty, we’re faced with challenges on whether our purchases will be successfully delivered to our homes.

2020: The rise, drop, and resurrection of eCommerce

Spurred by Covid-19 in 2020, Malaysia’s eCommerce market has grown to a projected USD4.46 billion in 2021!

The US International Trade Administration estimates Malaysia’s e-Commerce to grow 17.8 percent between 2020 and 2024.

According to another insight by Google’s e-Conomy Southeast Asia report 2020, over a third of 2020s’ online commerce in Southeast Asia was generated by new shoppers.

80 per cent of those shoppers intend to keep shopping online when the pandemic ends and according to a survey by Rakuten insights, one of the primary reasons for this is to continue staying safe from the pandemic.

That said, the pandemic had a key role in changing consumers buying behaviour over the past year and a half.  

For example, Brian Aaron, Head of Pick Up & Drop Off (PUDO) services for Southeast Asian tech-enabled express logistic company Ninja Van tells us that Ninja Van Malaysia’s parcel volumes saw a sharp drop in March 2020 when the pandemic broke out, followed by an extreme increase in a short period of time.

Malaysian’s love online shopping but hate long delivery times

As a Malaysian, I can attest to that. Online shopping is the only shopping I’ll do these days.

I’m not alone because four out of five of Malaysia’s internet users are online shoppers. Research by Paypal and Ipsos found that Malaysians like to shop online because doing so saves time.

Convenience seems to be key and according to Google and Temasek, 47% of users in Southeast Asia shopped online to save time and energy and another 47% to decrease exposure to Covid-19.

Delivery times play a big part in online purchases. Long delivery times will discourage buyers which is why Malaysians are often willing to pay more for their purchase to arrive more quickly.

The future of delivery is driven by smart solutions

The Malaysian Communications and Multimedia Commission (MCMC) recently proposed the National Courier Accelerator Plan (PAKEJ) initiative which is to deliver seamless coverage to support the e-commerce industry’s growth.

However, traffic congestion is still an issue for Malaysian logistics and is often the bottleneck to fulfil e-Commerce orders, especially in the last mile.

Do you know about PUDO?

Speaking of last mile challenges, did you know one of the biggest challenges facing the logistics industry is actually failed and missed deliveries?

If businesses have to deal with demand effectively, they would also have to reduce miles travelled while not affecting the customer experience.

Pick Up and Drop Off, or PUDO, collection points will cater to this need as they address consumers’ demand for efficiency, convenience, safety, and sustainability.

Increased efficiency: Parcel collection points and lockers enable cost and time saving with more efficient routing and fewer failed deliveries. This allows the driver only one location to go to drop off parcels.

Think about it, wouldn’t delivering 10 parcels to one PUDO point be more efficient than having those 10 parcels delivered to 10 different locations. And imagine if those locations are 30 minutes apart – that’s 5 hours you could have saved.

Convenience: Customers can choose where, when and how they received their parcels and pick up points are typically located in public areas with high traffic such as transit stations and retail outlets that are accessible to many. Outside of MCO restrictions, some of these places are open for up to 24 hours.

Safety and security: Due to the accessibility of PUDO points and parcel lockers, most of these places are equipped with CCTV in well-lit areas.

In retrospect, delivery drivers will also minimise Covid-19 contact with fewer drop-off locations.

Sustainable: Drivers no longer have to make multiple trips to individual homes which results in less mileage covered, fuel consumption and ultimately lower carbon emissions.

PUDO in Malaysia

Brian tells us that, for Ninja Van Malaysia at least, the adoption rates of PUDO services are the highest in Klang Valley due to its population density and e-Commerce penetration rates.

Although several logistic companies have their own PUDO points set up, Ninja Van Malaysia however boasts the widest network with:

• 4,575 collection points around the country.
• This network encompasses 100% of urban and suburban areas, and 95% of rural areas.
• Over 98% of LRT, BRT and Monorail stations in the country are also equipped with this parcel locker to meet the demands of modern customers today.

How it works:

Doodle artist Beatrice Oh has beautifully crafted an infographic to explain how Ninja Van’s send and collect PUDO services works in 3 simple steps.

As most deliveries are routed for the doorstep, you can opt-in for self-collection.

To opt for a Ninja Box (parcel locker), upon checking out your purchase, opt to self-collect your parcel at one of the many lockers situated at most LRT, BRT and Monorail stations in the Klang Valley.

Ninja Van will also send you an SMS asking if you would like to self-collect your parcel. 

You will then receive a One-Time Password (OTP) when your order is ready for collection to be input at a designated locker to retrieve the package. 

In addition, both Ninja Points (PUDO points) and Ninja Boxes are also available should shoppers want to return their items to the sellers.

Flexibility and seamless coverage

Flexibility is key with Ninja Van Malaysia’s PUDO services and has proven to be a convenient and safe alternative to doorstep deliveries.

For example, you may be expecting a parcel but find yourself out of town last minute. Brian says you can easily contact their customer service to inform them to hold your parcel at a nearby Ninja Point like 7/11 or redirect to where you are. 

The future of logistics is driven by smart solutions, and parcel lockers need to be a part of the equation for a more liveable future. Parcel lockers have proven to be a convenient, flexible, and safe alternative in addition to being recognised as one of the many applications that will be relevant for cities through 2025.

– Brian Aaron, Head of PUDO, Ninja Van Malaysia to TRP

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