Competitiveness of E Commerce Firms through ESG Logistics

Abstract

Rapid growth in the e-commerce market, caused by COVID-19, has led to fierce competition. The intense competition in e-commerce market triggers firms to strengthen their competitiveness by providing logistics services. Furthermore, as sustainability becomes important in consumers’ choices of products or services, e-commerce companies’ environmental, social, and governance (ESG) activities are becoming important. Therefore, our purpose of study is to examine the attributes of e-commerce’s competitiveness in the perspective of ESG in the logistics service and to suggest differentiation strategies. We analyzed the importance of each ESG attribute in the logistics through a conjoint analysis. As a result, we found that e-commerce consumers value ESG activities in the order of distribution in the social (9.866%), partnership in the governance (9.637%), operation of distribution center in the social (8.570%), packaging in the environmental (8.320%), operation of distribution center in the environmental (8.262%), purchasing in the social (8.200%), and distribution in the environmental (7.153%). Accordingly, we suggested ESG strategies such as win-win cooperation, opening information on the working environment in delivery and distribution centers, development of a shared logistics platform, preventing COVID-19, and raising consumers’ awareness of eco-friendly delivery.