Implementation and Challenges of Logistics Management for Electronic Commerce (E-Commerce) Transactions in Malaysia

Abstract

Electronic commerce applications (E-commerce) include various things and are not limited to business affairs. E-commerce transactions and logistics are interconnected in the chain of sales, purchase of goods and services. Logistics management of E-commerce transactions also has challenges and is exposed to risk. This is because the transaction is not seen directly because it depends on the use of smart devices, tablets and laptops. Among the challenges and risks faced through E-commerce transactions are the risk of delivery, security, fraud on financial transactions and the quality of goods not as advertised. The study was conducted to evaluate the implementation and challenges of logistics management for E-Commerce transactions in Malaysia. The analysis will also assess the level of coordination of government agencies with industry players and logistics companies in dealing with the challenges of logistics management of E-Commerce transactions. The analysis is focused on the statistics released by the Ministry of Home Affairs and Consumer Affairs (KPDNHEP) which is a total of 24,150 complaints received related to E-commerce transactions for the period 18 March 2020 to 28 February 2022. The research method is carried out through qualitative methods and analysis with reference to primary documents and secondary such as official reports, academic journals and online news. The results of the analysis found that the involvement of government agencies towards industry players and logistics companies is reactive in playing its role in dealing with the logistics management challenges of Electronic Commerce Transactions (E-Commerce).