Impact of Automated Parcel Stations on E-Commerce’s Last-Mile Delivery

Automated parcel stations (APS) are one of the best choices for small and medium enterprises (SMEs) and e-commerce users because it provides a practical and effective approach to addressing the growth of online sales while enhancing the value of conventional last-mile delivery and parcel pick-up options. The APS for delivering, pick-up and dropping parcels makes the shipping and returning process of a parcel more reliable, straight forward and smoother. As technology develops and advances, last-mile delivery is deemed to be a crucial component of online trading. Alike, the use of APS sustenance the sustainable last-mile delivery among SMEs and e-commerce users. Thus, it is essential to ensure APS is able to increase efficiency, reduce shipping and labour costs as well as offer free, convenient delivery and return processes. This study aims to understand the challenges of APS usage and propose a mitigation strategy for better use of APS in Malaysia towards enhancing last-mile delivery services among SMEs and ecommerce users. To obtain relevant information, in-depth interviews were conducted with APS providers located in central Malaysia. Apart from the interviews, the use of APS among the users was observed and analyzed. This study found several challenges and proposes strategies to mitigate those challenges. It is found that the location or travel distance and security of the parcel are critical concerns. Alike, the issue of large-size parcels reduces the efficiency of last-mile delivery leading to low customer satisfaction. This research suggests a solution toward better management for parcel delivery through APS with the least risk of loss or damage. Some of the mitigation strategies that might be useful for practitioners as well as scholars include a well- integrated APS system, user experience improvement and real-time user insights. The findings of this study contribute to the body of relevant knowledge for both APS providers and last-mile delivery consumers. Ultimately, this study outlines an important research agenda and offers exciting research agenda for future research in the context of APS.