Federal Express Corporation (FedEx), a major express transportation company, has released a survey on the festive shopping season in the Asia Pacific region. The survey, conducted in October 2024, surveyed 200 small and medium-sized businesses (SMEs) and 300 consumers across 12 APAC markets. The results showed that 70% of SMEs expect year-on-year sales growth this festive season, with nearly 80% forecasting this growth from within Asia, particularly from Southeast Asia. This optimism aligns with broader market trends, such as Southeast Asia’s double-digit growth in the e-commerce market in 2024, driven by increased digital adoption and cross-border trade. Intra-Asia trade is also expected to surpass $13.5 trillion by 2030.
The survey reveals key growth opportunities for SMEs:
- Over half (57%) of consumers prefer shopping on e-commerce platforms, with 70% motivated by substantial festive discounts and promotions.
- Free delivery continues to play a crucial role in shaping the shopping experience and driving purchases among consumers. Equally, consumers expect their orders to arrive within two to three business days, with convenient delivery options.
- Consumers want to see businesses develop more sustainable online shopping practices and are willing to pay a premium for sustainable packaging when purchasing gifts, reinforcing the opportunity for businesses to differentiate themselves in the crowded e-commerce marketplaces by offering sustainable options.
“In the Asia Pacific region, the gifting season continues in the months leading up to Christmas through to Lunar New Year,” said Kawal Preet, president, Asia Pacific, FedEx. “As cross-border e-commerce continues to surge, e-tailers—particularly small and medium-sized businesses— are gearing up to maximize sales this festive season. Through our extensive network and smart, intuitive digital solutions, we empower these businesses to deliver exceptional customer experiences, streamline holiday shipping, and thrive in this competitive landscape.”
The survey reveals that over four-fifths (87%) of SMEs are leveraging third-party e-commerce platforms to broaden customer reach and enhance sales opportunities. Significant online shopping events like Double Eleven, Black Friday, Cyber Monday play a key role in driving consumer engagement during the holiday season. Notably, over half (57%) of consumers prefer shopping on e-commerce platforms, with 70% motivated by substantial discounts and promotions, highlighting the importance of these events for both e-tailers and consumers.
Also, survey findings reveal that SMEs consider reliable shipping, competitive pricing, and digital tools crucial for meeting international shipping needs during this busy period, with 48% of e-merchants seeking additional support from logistics providers to manage peak volumes.
FedEx’s comprehensive e-commerce solutions is supporting e-tailers to streamline order fulfillment. The company has integrated its Ship Manager platform, with leading e-commerce marketplaces such as Shopify and BigCommerce, allowing APAC e-tailers to create shipments and manage paperwork directly from their online orders. Such easy-to-use, friction-free services are crucial for e-commerce merchants, especially during the busy holiday season when order volumes increase significantly.
In addition to festive discounts and promotions, delivery continues to play a crucial role in shaping the shopping experience for consumers. According to the survey, 65% of respondents indicated that free shipping options motivate them to finalize their purchases. However, late deliveries remain a significant concern, with 54% of consumers citing it as their top issue during the festive season. A significant 60% of consumers expect their orders to arrive within two to three business days, and 45% prioritize convenient delivery options to enhance their shopping experience.
To meet consumer expectations, e-commerce shipping services like FedEx® International Connect Plus (FICP) can assist e-tailers in shipping within Asia-Pacific, as well as to the US and Europe. This cost-effective international shipping solution typically delivers most shipments within one to three business days, aligning with consumer demands for speedy delivery.
Recognizing the critical importance of last-mile delivery, FedEx has built a network of approximately 260,000 smart lockers across the APAC region, ensuring a secure delivery location even when customers are not at home. Additionally, customizable last-mile delivery options, along with direct messaging and convenient tracking through digital tools like FedEx® Delivery Manager International and Picture of Proof Delivery, provide consumers with the assurance that their packages have been delivered right to their doorsteps.
There is a growing opportunity for businesses to differentiate themselves in the crowded e-commerce marketplaces by offering sustainable options. While less than half (47%) of SMEs believe that customers seek a balance between sustainability and speed in their online shopping experiences, a remarkable 88% of consumers are saying that they want to see businesses develop more sustainable online shopping practices to stand out from competitors.
Additionally, consumers are drawn to companies that prioritize sustainability, indicating that eco-friendly practices can significantly enhance brand loyalty. Over three quarters (77%) of shoppers are willing to pay a premium for sustainable packaging when purchasing gifts, demonstrating a strong readiness to support environmentally responsible choices.
According to the survey, sustainability is no longer an optional extra for SMEs looking to expand their e-commerce operations; it has become an essential aspect of the decision-making process for consumers. SMEs can make informed choices by analyzing their supply chains and utilizing tools like FedEx® Sustainability Insights, which helps businesses measure the historical carbon footprint of their shipments, making emissions reporting more accessible and transparent.
