How online vendors select parcel delivery carriers

Abstract

This study investigated what criteria online vendors use to select parcel delivery carriers and examines what bearing they have on the development and maintenance of mutually beneficial partnerships. The selection attributes are identified via the logistical transport literature and then grouped according to their influence on online vendors. Seven distinct factors pertaining to the selection of carriers were identified, the two most important of which are ' 'on-time, tracking and quick response ' ' and ' fare rate andfreight loss. ' ' Considerable interpénétration is discernible between these factors and the e-commerce business model, average monetary transaction and shipment frequency. Online transactions reply on a distribution service that ensures physical goods reach intended customers. Since service requirements fluctuate over time, selection attributes identified in previous studies are likely to be of limited utility. An expanding online market affords more distribution service opportunities, which makes it imperative that key factors affecting the selection of carriers by online vendors are amenable to empirical verification.