The Relationship Between E-Commerce Last-Mile Logistics and Online Repurchasing Intention in Egypt

Abstract

The widespread accessibility of the Internet, alongside the rapid advancements in digital technologies, has resulted in a marked surge in the adoption of e-commerce, both on a global scale and within the Egyptian market. Online shopping has increased significantly due to consumers' convenient access to a wide range of goods and services they may purchase anywhere and anytime. This significant change has caused businesses to operate differently and influenced how consumers behave, creating new challenges to overcome and opportunities for businesses to grow. The final customer touchpoint of delivering physical products, last-mile logistics, has always been known for its complexity and cost within the supply chain. This crucial stage involves navigating busy cities, handling large volumes of deliveries, and meeting specific customer needs. Recognizing the importance of last-mile delivery for e-commerce success, this study aimed to uncover the challenges and opportunities to understand its impact on customer satisfaction. Delving into the heart of Egypt's B2C e-commerce scene, this research investigates the relationship between consumer experiences with last-mile logistics and their tendency to repurchase from online platforms. Here, "last-mile logistics" encompasses both the forward delivery of products to customers and the reverse logistics of managing returns. The study focused on consumer electronics, a dominant category in Egypt's online market, accounting for over 60% of online purchases (Statista.com, 2022). The study was applied on Amazon.eg. to account for the diverse performances across different platforms and ensure a comprehensive examination of research hypotheses. The analysis revealed a strong association between order fulfillment, reverse logistics, and the likelihood of repeat online purchasing in Egypt. It also highlighted the pivotal role the refunding process plays for return orders and how these returns are managed.