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How Amazon alleviates SMEs’ delivery woes

WORK FLEXIBILITY NO LONGER ATTRACTIVE TO EMPLOYEES

Singaporeans planning to switch jobs are no longer attracted to flexible working arrangements as much as they used to, a study has found.

According to EY’s 2022 Work Reimagined Survey, only two in 10 employees are seeking remote-work flexibility from their prospective employers. Of those wanting work flexibility, 90% of them work remotely at least two days per week.

“This could be due to the fact most are already working for companies that offer flexibility in some form,” EY said, adding that only 12% of companies want their employers to report to the office for five days a week.

What employees are seeking now is higher pay, according to EY.

Based on the survey, four in 10 (42%) employees seeking new jobs now desire higher pay.

Employees (45%) also believe that higher compensation is key to addressing staff turnover in companies, but only 35% of employers agree with this proposition.

The ‘Great Attraction’

Apart from higher pay, 35% of employees also cited career growth as a top reason for them to move employers.

“As flexibility has now become the new standard requirement, employers must re-evaluate their employee value proposition to address the key workforce concerns of today, particularly around competitive compensation and career growth opportunities,” Samir Bedi, EY Asean Workforce Advisory Leader, said.

“Employers who do so will be able to change their position from being in the ‘Great Resignation’ to one that’s a ‘Great Attraction’,” Bedi added.

To address the turnover of staff, 64% of employers believe they should match talent and skills to future business needs which they plan to do by hiring employees from other countries and allowing them to work from anywhere if their skills are critical or scarce.

Singaporean sellers on Amazon increased 45% between 2019 and 2021

How Amazon alleviates SMEs’ delivery woes

Local online sellers now have a new way to send packages to customers even if they were not ordered on the Amazon platform. The online giant has decided to get into the local and cross-border logistics as a service business, which it calls “Amazon Easy Ship.” The service was launched in February, having been piloted by Hyper Singapore, which is the authorised local distributor for HyperJuice and HyperDrive, and Momo Gadgets which is a seller of branded phones, accessories, electronics, and lifestyle products. Unlike the postal service, Amazon charges a flat fee per delivery based on the size of the parcel.

Amazon has noticed the number of Singaporean sellers in its local and international stores jumping over 45% between 2019 and 2021, on top of the 25% increase in sellers who are already exporting their products with the platform.

Jan Lim, Country Leader of Singapore Marketplace at Amazon said that for a fee, they will be able to ensure faster and more predictable delivery experiences for customers along with the up-to-date shipment tracking information, optimised for cost and speed with shipping services through Amazon’s enrolled carriers.

“These sellers will not need to configure fulfilment time manually, freeing up their time to focus on better sourcing, creating, and promoting their products and brands to grow their customer base,” he added.

Key features include a simplified seller registration wherein the program will support a one-click opt-in integrated with the account registration of Merchant Fulfilment Network, or sellers who manage their own delivery. The shipping settings are automated through a shipping engine, which avoids the need for sellers to select their own configurations.

Currently, over 50 sellers have availed of the programme which delivers orders within 2.5 days on average and has a 100% parcel tracking rate, according to Amazon Singapore.

Lim also added that the order fulfilment experience will be integrated with the Manage Your Order on Amazon’s Seller Central.

“The scheduling and fulfilment experience will be powered by Amazon Easy Ship Scheduling Service (ESS), which enables orchestration of shipment planning, creation and delivery,” he said.

There will also be a standardised seller rate where sellers will be charged a flat fee per delivery based on the weight and size of the delivery, and they will not have to negotiate rates with carriers. It will also allow sellers to preview shipping fees when they are scheduling pick up and review them on the order transaction reports.

The Amazon Easy Ship service also enables trackable delivery with customer notifications for key progress such as ship confirmation, in-transit, and delivered, amongst others, Lim said.

Online challenges, exports

Singaporean businesses cited high costs of cross-border logistics, lack of clarity on important regulations in markets abroad, and the lack of ability and information to compete globally as top challenges for export opportunities.

“By using Fulfilment by Amazon (FBA), SMEs can leave customer service, returns, and the picking, packing, and shipping of their products to us. With this freed up time and resources, they can focus on product innovation as well as better engaging and understanding their consumers,” he said.

With the rise of online selling opportunities, some fundamental aspects of selling are being overlooked

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