Evaluation of Logistics Management and Performance of Micro E-Businesses in Ilorin Metropolis
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Date
2022-12
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Abstract
Information technology is growing rapidly, forcing many socio-economic changes, creating new
business waves and simplifying trading activities. With projection of quarter of total global retails
by 2025, e-commerce, easy to set-up and manage has potential of repositioning economy, creating
more MSMEs and bridging unemployment gap. Logistics management, as the key factor that
actualizes online shopping, can make or mar this potential. Delivery of online purchased goods is
an entity that influences customers’ satisfaction, continuous patronage of online shopping and
ultimately the performance and sustainability of the particular e-business brand. The objective of
this study was to evaluate the effect of logistics management on e-business performance in Ilorin
metropolis through delivery charges and pick-up and delivery times of goods. The nature of online
shopping posed infinite population, as such, the study used the formula of Rose, Spinks and
Isabel-Canhoto (2015) to estimate a proportion of an infinite population with an approximate 95%
confidence level which gave 400 minimum sample size. Purposive sampling technique was used
to select respondents from Jumia’s pick up stations in Ilorin metropolis. A questionnaire with
close ended questions was used to collect information from them. The data collected were
analysed using frequency counts, descriptive and inferential statistics, while t-test was used to test
the hypothesis. The study found a significant change in customer satisfaction through
improvement in logistics management as it is responsible for more than 57% sales volume of e business. Online shoppers mostly view delivery charges as extra burden and will not hesitate to
complete orders with free or relatively low delivery charges, hence, the moment an order is
completed online, customers prefer to have their goods as soon as possible, if not immediately,
having to wait for a certain time has limitation on online shopping. The study recommended that
e-business brands should strive to have their delivery machineries and charge such prices that will
entice their customers. If they must use third party logistics (3PL) service, they should negotiate
on their customers’ behalf, not exposing them to possible exploitation by the 3PL firms