Logistics Performance, Ratings, and Its Impact on Customer Purchasing Behavior and Sales in E-Commerce Platforms

Problem definition: We examine the impact of logistics performance metrics such as delivery time and customer’s requested delivery speed on logistics service ratings and third-party sellers’ sales on an e-commerce platform. Academic/practical relevance: Although e-commerce retailers like Amazon have recently invested heavily in their logistics networks to provide faster delivery to customers, there is scant academic literature that tests and quantifies the premise that convenient and fast delivery will drive sales. In this paper, we provide empirical evidence on whether this relationship holds in practice by analyzing a mechanism that connects delivery performance to sales through logistics ratings. Prior academic work on online ratings in e-commerce platforms has mostly analyzed customers’ response to product functional performance and biases that exist within. Our study contributes to this stream of literature by examining customer experience from a service quality perspective by analyzing logistics service performance, logistics ratings, and its impact on customer purchase probability and sales. Methodology: Using an extensive data set of more than 15 million customer orders on the Tmall platform and Cainiao network (logistics arm of Alibaba), we use the Heckman ordered regression model to explain the variation in customers’ rating of logistics performance and the likelihood of customers posting a logistics rating. Next, we develop a generic customer choice model that links the customer’s likelihood of making a purchase to the logistics ratings provided by prior customers. We implement a two-step estimation of the choice model to quantify the impact of logistics ratings on customer purchase probability and third-party seller sales. Results: We surprisingly find that even customers with no promise on delivery speed are likely to post lower logistics ratings for delivery times longer than two days. Although these customers are not promised an explicit delivery deadline, they seem to have a mental threshold of two days and expect deliveries to be made within that time. Similarly, we find that priority customers (those with two-day and one-day promise speed) provide lower logistics ratings for delivery times longer than their anticipated delivery date. We estimate that reducing the delivery time of all three-day delivered orders on this platform (which makeup [Formula: see text] 35% of the total orders) to two days would improve the average daily third-party seller sales by 13.3% on this platform. The impact of delivery time performance on sales is more significant for sellers with a higher percentage of three-day delivered orders and a higher spend per order. Managerial implications: Our study emphasizes that delivery performance and logistics ratings, which measure service quality, are essential drivers of the customer purchase decision on e-commerce platforms. Furthermore, by quantifying the impact of delivery time performance on sales, our study also provides a framework for online retailers to assess if the increase in sales because of improved logistics performance can offset the increase in additional infrastructure costs required for faster deliveries. Our study’s insights are relevant to third-party sellers and e-commerce platform managers who aim to improve long-term online customer traffic and sales.

Study on the Path of Three-Chain Integration of the Logistics Service Industry in Zhengzhou

To optimize the spatial layout of modern logistics services in Zhengzhou, build a driving mechanism for the professional development of logistics services, and promote logistics services to give full play to the driving force of coordinated development of regional economy, we must base ourselves on the logistics service industry chain, strengthen industrial innovation, value innovation and integration innovation, and realize the reconstruction of the value chain of logistics service industry. Based on the three-chain integration theory, this paper constructs a fuzzy comprehensive evaluation model for the three-chain integration of logistics service industry, adopts a combination of qualitative and quantitative methods, evaluates the effect of the three-chain integration of logistics service industry in Zhengzhou, and aims at the problems existing in the process of three-chain integration, such as lack of systematic planning, weak competitiveness, and low profitability. Measures such as improving fiscal and tax incentives, clarifying strategic positioning, overall planning of industry layout, strengthening innovation, and integrating new driving forces for the development of logistics service industry will further promote the in-depth integration of logistics service industry chain, value chain, and innovation chain in Zhengzhou.

Supply chain risk management in the COVID-19 pandemic: strategies and empirical lessons for improving global logistics service providers’ performance

PurposeThe enormous impact of the COVID-19 pandemic showcases the key role of supply chain risk management (SCRM) in achieving and maintaining business performance, competitiveness and survival in the “new normal”. The purpose of this paper is to explore what impact the COVID-19 pandemic has had and may yet have on supply chains (SCs), which SCRM approaches have proved successful and how logistics service providers (LSPs) have applied the knowledge they have gained to improve their SCRM practices and resilience so as to prepare better for the next major disruption.Design/methodology/approachThis paper combines an extensive literature review with a multiple-case study of 10 internationally operating LSPs and how they have handled the impact of the COVID-19 pandemic so far. To bridge the research-practice gap, this study draws on the dynamic-capabilities view and provide insights that are valuable to both academia and practice.FindingsThis study provides empirical evidence on the severe impact of the COVID-19 pandemic on SCs, which has posed several challenges to LSPs. The study identifies eight factors that are critical to the adaptive capabilities of LSPs and, therefore, to their resilience in extreme conditions. The findings of this study show that these factors determine whether an SCRM system is robust and agile enough to allow an LSP to anticipate potential disruption and to respond fast enough when disruption occurs. Specifically, this study finds that robustness and agility demonstrably strengthen business performance, while learning from experience proves key to reconfiguring an SCRM design in response to acute disruption.Originality/valueThis paper is among the first to provide rich, empirical and practically applicable insights into the impact of the COVID-19 pandemic on business in relation to SCRM. These novel insights offer inspiring opportunities for further research.

Innovation-oriented dynamic capabilities of logistics service providers, dynamic resilience and firm performance during the COVID-19 pandemic

PurposeThe purpose of this paper is to use a theoretical framework to investigate the relationships between different innovation-oriented dynamic capabilities, dynamic resilience and firm performance among logistics service providers (LSPs) and in-house logistics departments of industrial companies during the coronavirus disease 2019 (COVID-19) pandemic.Design/methodology/approachThe conceptual theoretical framework relies on the dynamic capabilities framework (DCF) and the relational view (RV), which are rooted in the resource-based view (RBV). It is hypothesized that the dynamic capability to innovate reinforces the dynamic capability to adapt and to recover in highly dynamic and vulnerable environments during the pandemic. This allows LSPs to successfully create new services and respond to the changing market circumstances in terms of logistics service quality (LSQ) and firm performance. Data were collected from 83 LSPs and 30 in-house logistics departments via an online survey. The study determined the general strength and direction of the relationships between latent variables. A correlation analysis was utilized to establish statistical significance of the results.FindingsIn this study, a range of innovation-oriented capabilities for achieving more dynamic resilience were bundled in a conceptual framework and were found to be statistically significant for LSQ and firm performance. They are the capability to distribute new knowledge, to train employees effectively, to develop cross-functional collaboration within the firm, to develop inter-firm relationships with business partners on a long-term basis as well as to learn from rivals, and to pursue a win-win relationship with them.Research limitations/implicationsThe results of the study do not imply that the identified capabilities are the only ones relevant to increasing dynamic resilience during the pandemic. In October 2020, the COVID-19 pandemic was at different stages in different countries, so that the level to which firms were affected varied, and although the data were collected during one month only, due to the high dynamics of the pandemic, data were collected during different stages of disruptions, even among respondents in the same country. This study was set in the context of COVID-19, and it could not be proved whether the conceptual framework is generalizable to other crises or particular industries, but it would be worthwhile to examine this in the future. Finally, it was not tested whether LSQ mediates the relationship between innovative capabilities and firm performance during the pandemic.Practical implicationsThe results help managers with regard to their strategic and operational decisions in relation with COVID-19. These findings are useful for executives and logistics managers to improve these capabilities to gain a competitive advantage during pandemic and to find their strengths and weaknesses to develop critical capabilities for situations with a high turbulence and dynamic in their environment, and therefore provide a path for improvement.Originality/valueThis paper operationalizes a multi-theoretical conceptual framework in the context of logistics management (LM) and supply chain management (SCM). This conceptual framework was empirically tested.

E-Commerce Logistics Service Quality

With the recent developments in technology, globalization, and COVID 19 pandemic, the volume of e-commerce logistics activity has been growing rapidly. However, a literature review for this study indicated that there is a lack of research on commerce logistics service quality. This study intends to fill this gap in the literature. It aims to identify the e-commerce logistics service quality factors that affect customer satisfaction. It is also interested in identifying if there is any relationship between the satisfaction of e-commerce customers and their loyalty. Data from 1562 e-commerce customers living in Turkey were collected via a web-based survey. The results were analysed using structural equation modelling. Timeliness, order condition, order accuracy, and order discrepancy handling were found to have a positive effect on customer satisfaction. A positive relationship between customer satisfaction and customer loyalty was also found.

THE INFLUENCE OF RESOURCES DIMENSIONS AND INNOVATION SOLUTION ON VALUE CREATION: A CASE STUDY OF HALAL LOGISTICS SERVICE IN THAILAND

This study examines the influence of the relationship between resources dimensions and the value creation of logistics service providers (LSPs), in the economic crisis caused by the coronavirus disease 2019 (COVID-19). It also explores the mediating role of innovation solutions in halal logistics in the relationship between resources dimensions and value creation. Halal logistics play an important role in Muslim countries, and there has been a growing demand for halal products from non-Muslims. Despite its importance, there is limited knowledge of halal logistics problems in Thailand among the LSPs. To understand these issues, the study uses a questionnaire to collect data from 200 Thai LSPs selected through purposive sampling based on their logistics experience in halal, agricultural, or food products. We test the hypotheses using structural equation modeling. The results show a direct relationship between resources dimensions and the value creation of LSPs. The resource dimension is indirectly related to value creation through innovation solutions that mean it acts as a partial mediator in the relationship between resources dimensions and value creation. This study has important implications for LSPs in Thailand in that it demonstrates that they can promote innovation through resources utilization and thereby enhance financial and business performance.