Third the Companies:
6. Logistics is Fragmented
There isn’t a logistics company that can cover the whole country because of it’s size and cost to do so. E-Commerce platforms have to make agreements with a number of different logistics providers with varying prices to be able to meet the delivery demands. This means they are depending on outside suppliers that may be dependable or not. There could be unnecessary delays or high costs that wouldn’t be there if they were able to do it themselves.
7. Staff Instability
As Myanmar has opened up the demand for high quality staff has increased dramatically. Companies all compete for the same small pool of highly qualified and competent staff. Training new staff is an on going thing. Staff easily will jump from one job to another if the pay is better or the company has a better image. E-commerce companies have a high turnover of staff as new players enter the market.
8. Fulfillment of Orders
As stated earlier, the e-commerce companies depend on outside distribution sometimes and have to get products out to customers with only cash on delivery as the situation. This means there can be massive delays in delivery, canceled orders, and customers not being available. E-commerce companies face a huge challenge in trying to deliver as quickly as possible to collect the payments. This can be a tough situation.
In conclusion, e-commerce is growing in Myanmar but there are many issues these companies have to overcome to be successful in a very difficult market. It’s possible for success, and as these challenges get solved in the next couple of years, you’ll see a huge boom in e-commerce in Myanmar.