Convincing Features
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The malaysian e-commerce sector is expanding rapidly, transforming shopping habits and the retail landscape. The primary challenge is ensuring logistics, particularly last-mile delivery, can meet rising demand and increasing complexity across regions. In 2023, the market was valued at rm 24.5 billion and is projected to grow at 12.6% annually until 2027 (abdullah et al., 2024). E-commerce is becoming a significant economic driver. In 2024, total e-commerce income for malaysian businesses reached rm 1,230.1 billion, a 3.9% increase from the previous year (dinc & gokmen, 2023). Growth is fueled by high internet usage at 93.8% and the expanding influence of social commerce platforms like tiktok shop and facebook, which are expected to generate rm 5.4 billion in sales by the end of 2024 (abdullah et al., 2024; hasan, 2023). These platforms, along with shopee and lazada, have become essential retail channels, especially for small businesses and individual sellers. Their integrated payments and marketing tools have encouraged broader participation in digital commerce. This study will assess the effectiveness of last-mile delivery logistics in supporting e-commerce growth in malaysia, focusing on key infrastructure challenges, regional logistics differences, and the impact of digital platforms on last-mile strategies.
Logistics, particularly last-mile delivery, is central to malaysia’s digital transformation, linking online purchases to customers. Major players include shopee, lazada, and j&t express. As parcel volumes rise and customers expect faster delivery, existing logistics systems are under strain (abdullah et al., 2024; sin, 2022). Providers face challenges such as traffic congestion and operational inefficiencies. The increasing complexity of last-mile delivery highlights the need for greater efficiency, innovative solutions, and further investment in infrastructure.
Previously, fast delivery was the primary driver of customer satisfaction. However, recent studies in 2025 indicate that delivery accuracy and effective communication now outweigh speed alone (hamid et al., 2025). Customers prefer accurate tracking, real-time updates, and direct communication from logistics providers. This shift reflects a maturing malaysian e-commerce market, where customers expect higher service standards beyond speed.
The northern region of malaysia, comprising perlis, kedah, penang, and perak, is a key economic region. Penang excels in manufacturing, particularly electronics and automotive, while kedah and perak are experiencing increased urbanisation, driving demand for efficient e-commerce logistics. Urban growth in kedah and perak has led to new housing, improved transport, and more retail centres. However, the pace of e-commerce and infrastructure development varies across these states, creating distinct logistical challenges. Penang benefits from strong road networks and logistics facilities, while kedah and perak face issues such as poor roads, limited rural access, and storage constraints. These disparities result in delivery delays and complicate last-mile logistics. Additionally, urban sprawl and traffic congestion in cities such as alor setar and ipoh further hinder deliveries, underscoring the need for improved logistics solutions and stronger collaboration between e-commerce companies and logistics providers.
Despite rapid e-commerce growth in malaysia, a significant gap persists between consumer expectations and the service quality offered by logistics companies. Customers remain dissatisfied, especially with timeliness, which is the lowest-rated last-mile delivery factor (caberoy et al., 2025). Persistent logistics challenges continue to drive this disconnect.
Delivery delays and inconsistency
Delivery delays continue to challenge logistics companies in malaysia. The recent decline in the logistics performance index reflects deteriorating infrastructure (makmor et al., 2023; moganathan et al., 2022). Contributing factors include traffic congestion, inadequate roads, limited warehousing, and bureaucratic obstacles in customs and inter-state coordination. As a result, customers frequently experience late deliveries, leading to frustration and reduced trust in e-commerce platforms.
Parcel handling
Parcel handling is another major factor impacting customer satisfaction. Customers frequently receive goods that are damaged or in poor condition, which undermines safety and reliability, two key aspects of satisfaction (caberoy et al., 2025; sin, 2022). Improper packaging or handling of fragile and perishable items often leads to breakage or spoilage during transit. Mishandling during sorting or transport can also result in damaged products. These issues frustrate customers, raise safety concerns, and prompt them to question the provider’s reliability, ultimately harming the brand’s reputation and reducing repeat purchases.
Operational inefficiencies
Operational inefficiencies also undermine service quality for logistics providers. Ineffective route optimisation and last-minute order changes increase costs and reduce flexibility (ijeh, 2024). Poor route planning leads to longer delivery times and higher fuel expenses. Last-minute changes, such as cancellations or address updates, add complexity and disrupt seamless service. This lack of flexibility, especially during peak periods, limits providers’ ability to meet consumer expectations for timely and reliable delivery.
In the northern region of malaysia, logistics providers must serve both high-density urban centres, such as georgetown and ipoh, and rural areas where last-mile delivery efficiency often declines. Georgetown faces traffic congestion and limited parking, which slows deliveries despite better infrastructure than in rural areas. In contrast, rural areas such as parts of kedah and perak experience poor road conditions, long distances from logistics hubs, and inadequate infrastructure, resulting in slower, more expensive deliveries. Delivery networks in these regions are less developed, and providers often lack access to technology for route optimisation and real-time tracking, further reducing efficiency. These differences in infrastructure and geography create distinct logistical challenges that require tailored solutions for urban and rural populations. However, there is limited local research on how these logistics issues affect residents’ satisfaction in the northern region, which hinders efforts to address these challenges and improve the customer experience.
Geographical scope:
The scope of this study is confined to residents of the northern region of malaysia, specifically perlis, kedah, penang, and perak. This regional focus is essential because logistics performance and infrastructure quality differ across malaysia. Recent studies indicate that localised logistics frameworks are required to address regional delivery inconsistencies (hamid et al., 2025; makmor et al., 2023).
Target population:
The study focuses on b2c e-commerce users who have made online purchases in the past 6 months. This demographic is a key driver of the malaysian digital economy, which recorded a total e-commerce income of rm 1,230.1 billion in 2024 (abdullah et al., 2024; dinç & gökmen, 2023). Focusing on active users ensures that respondents can provide accurate feedback on recent delivery experiences, particularly regarding last-mile service quality (hamid et al., 2025).
Limitations:
E-commerce: the utilization of the internet to facilitate the purchase, sale, transportation, or exchange of data, goods, or services (hasan, 2023).
Last-mile delivery: the concluding phase of the logistics process in which the order is delivered to the end consumer at their residence or a designated collection point (tabim et al., 2024).
Customer satisfaction: the emotional or cognitive evaluation by a consumer concerning the degree to which their expectations of a service or product are fulfilled (hamid et al., 2025).
Logistics service quality: a multidimensional construct that includes the efficiency, reliability, and communication effectiveness of a logistics provider (lin et al., 2023).
Delivery accuracy: the extent to which the correct parcel is delivered to the intended recipient at the specified location, without errors in documentation or order fulfilment. Recent research indicates that accuracy is now a more significant predictor of customer satisfaction than delivery speed in the malaysian market (hamid et al., 2025).
Parcel safety: the physical integrity of goods upon arrival, ensuring that items remain undamaged, untampered, and not lost during transportation and handling (caberoy et al., 2025). Studies on j&t express demonstrate that parcel condition is a critical determinant of customers’ intention to reuse the service (sin, 2022).
This study is structured into five chapters to systematically address the research objectives and present the findings. Chapter 1 introduces the research by outlining the background of the malaysian e-commerce landscape and logistics sector, the problem statement, research questions, objectives, scope, significance, and definitions of key terms related to the digital economy and last-mile delivery (dinç & gökmen, 2023; tabim et al., 2024). Chapter 2 presents a comprehensive literature review, focusing on an overview of e-commerce customer satisfaction and the variables influencing it, including delivery speed, accuracy, and parcel safety. The chapter further examines issues in e-commerce customer satisfaction, provides an overview of logistics service quality, discusses relevant theories, explores the relationship between logistics service quality and e-commerce customer satisfaction, and details the development of hypotheses with associated theories and conceptual frameworks (caberoy et al., 2025; hamid et al., 2025; lin et al., 2023).
Chapter 3 discusses the methodology employed in this study, including research design, population and sampling methods targeting b2c users in the northern region, data collection procedures, analytical approaches, and a pilot test to ensure instrument reliability (sin, 2022). Chapter 4 presents the data analysis and findings, including statistical analyses such as normality testing, reliability assessment, correlation, and regression. These analyses identify the most significant predictors of customer satisfaction among logistics factors (hamid et al., 2025). Chapter 5 summarises the study’s findings, discusses its limitations, highlights implications for logistics providers and policymakers in malaysia, and offers recommendations for further research on route optimisation and digital transformation in logistics (ijeh, 2024; makmor et al., 2023; moganathan et al., 2022).
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