A study of customer satisfaction with selected e-commerce platform that are using 3PL's

CHAPTER 1
Background of the Study

Introduction
E-commerce has become more prevalent worldwide, including in the Philippines, owing
to the fast advancement of information and communication technology (ICT). E-commerce
refers to the exchange of goods and services with monetary value between groups of people (De
Rezende, 2023; Xie & Wang, 2021). It utilizes electronic communications and digital
information management technologies to establish and redefine value-creating relationships. In
essence, it involves using the internet as a platform for communication and financial transactions
(Hart, 2020). E-commerce websites have the ability to send various types of data, such as text,
graphics, images, sounds, animation, and video, making them an effective tool for businesses to
promote their products and services. It has become a modern business that meets organization's
needs and customers can purchase products in a certain condition such as when prices get lower,
the quality of goods increases, as well as the speed of delivery service increases. There are four
types of e-commerce: business to business, business to consumer, consumer to business and
consumer to consumer (Salehi et al., 2018). The benefit of using e-commerce is that customers
can see the price, color, and any size they want to buy conveniently and without wasting a lot of
time (Şehirli & Orak, 2020).

Online shopping, an e-commerce activity, is a popular method of purchasing goods and

services over the internet. It allows customers to browse and select items from online stores, add
them to a virtual shopping cart, and make payments for their purchases. Online shopping offers
benefits such as time-saving, cost savings, convenience, and a wide range of choices. Factors that
influence consumers to shop online include the visual appeal of e-commerce web design,
interactive website features, ease of use, corporate identity design, and brand positioning of e-
commerce companies (Suharto et al., 2018). Since a large portion of the Filipino population has
developed a preference for digital technology, online shopping and the ecommerce sector as a
whole are constantly expanding in the Philippines. According to Kepios analysis, there were
85.16 million internet users in the Philippines as of January 2023 (Be Global, 2023). Online
shopping has become increasingly common in the nation as a result of rising internet usage and
the number of online retailers (Halim, 2019). An upsurge in smartphone usage in the whole
country, which provides consumers with a convenient means to access online marketplaces, is
another factor boosting e-commerce. The eCommerce demand was even heightened by the
COVID-19 pandemic, with Filipinos obligated to work and study from home. In fact, in
Southeast Asia (SEA), the Philippines has actually experienced the fastest growth in online
shopping since the pandemic. 54% of consumers in this country made their first purchase via the
internet during the pandemic, and 73% of these first-time buyers intend to keep doing so once
restrictions are lifted. The nation quickly overtakes its SEA neighbors, despite having a lower
starting point (Chan, 2023). Because of this, businesses both domestic and abroad have
acknowledged that Filipinos of all ages now regularly shop online. The Philippines' eCommerce
market saw sales of $17 billion in 2021, largely due to the country's 73 million active online
users. According to Be Global (2023), this will grow by 17% to $24 billion by 2025. The
ecommerce market is facing difficulties in spite of the apparent growth. One difficulty affecting
the sector is gaining the trust of consumers and altering how they view online shopping.

As the e-commerce market in the Philippines expands rapidly, so does the number of
online marketplaces. E-commerce marketplaces are online shopping platforms that let various
businesses sell their goods in just one place. They can be in the form of a website or an app, and
some businesses provide both in order to link buyers and sellers. Be Global (2023) named the top
5 Philippine eCommerce marketplaces including Shopee, Lazada, Zalora, Tiktok Shop, and
Facebook marketplace. Shopee has firmly established its position as the most well-liked
eCommerce marketplace in the Philippines with 50,000,000 monthly visitors. Shopee has been
around since 2015, but it first debuted its app before its website. Shopee made this strategic
choice as it understood that in Southeast Asia, mobile commerce was the way of the future.
Lazada, which follows Shopee in terms of monthly website traffic, sells a wide range of goods,
including groceries, electronics, fashion, and beauty products. Another name on the list of top
marketplaces in the Philippines is Zalora, one of the top players in fashion and lifestyle e-
commerce there. Approximately 214,000 people visited it in April 2023, according to data from
SimilarWeb. Tiktok Shop, a rapidly expanding platform that has grown beyond entertainment
with the addition of e-commerce, comes in at number four on the list. TikTok has evolved to be a
significant component of Philippine e-commerce businesses thanks to its large user base. The
TikTok shop, in contrast to the three prior online markets, enables sellers to market their goods
through entertaining and interesting videos, live streams, and product showcase pages. Last but
not least is Facebook, which has long been a center for e-commerce in addition to being one of
the most popular social media platforms. Furthermore, users can search for items by location,
price, and category. They can chat directly through chat to haggle prices (Be Global, 2023).
What's common among these marketplaces is that they have their own properly coordinated
logistics which are designed to facilitate order management, warehouse operations, real-time
positioning of goods, and order sign-in processes.

Logistics is called the heart or the pillar of e-commerce. To operate an e-commerce

business, from inventory management to order fulfillment, one must be proficient in the
fundamentals of logistics. Customers won't be satisfied and the business won't be profitable if the
logistics of an e-commerce fail. Logistics plays a crucial role in e-commerce by ensuring the
timely delivery of goods, maintaining the integrity of products, and protecting the privacy of
personal information (Krishnamoorthy, 2020). Military personnel first used the term "logistics"
to describe the way they obtain, store, and ship equipment and supplies. This term is now
frequently used in the business world, especially by firms in the manufacturing industries, to
describe how resources are managed and moved throughout the supply chain. Logistics, as
defined by Kenton (2023), is the broad process of controlling how resources are acquired, stored,
and transported to their intended locations. This basically means that the movement and transfer
of goods within a supply chain is its primary focus. It's a complex procedure that includes
organizing, carrying out, and managing the storage and transportation of goods for online
transactions. Choosing potential distributors and suppliers and evaluating their efficiency and
accessibility are all part of logistics management. Simply put, logistics management aims to have
the proper quantity of an input or resource at the proper time, deliver it to the proper internal or
external customer, and get it to the right location in good condition. Effective logistics
operations in the e-commerce sector now require the integration of technology with logistics
management (Chen et al., 2019).
 The logistics industry actually offers various levels of services, such as 1PL, 2PL, 3PL,
4PL, and 5PL, with 3PL, 4PL, and 5PL being the most common categories used to address
complex market requirements efficiently (Alvarez, 2022). First party logistics or 1PL refers to
businesses or individuals that handle their logistics operations internally, owning their
transportation and being responsible for shipping and storage; however, few companies rely on
this model due to the labor, time, and specialized knowledge required, leading them to employ
third party logistics providers. Second party logistics or 2PL providers, on the other hand, handle
transportation and logistics management, including loading/unloading goods and collecting
necessary paperwork, without the need for a company to own its own modes of transport, such as
airlines, shipping, and haulage companies. Third party logistics or 3PL services, such as freight
forwarders and courier companies, are common forms of logistics management that handle
distribution, warehousing, and fulfillment services. 3PLs handle inbound and outbound
transportation, warehousing, shipment preparation, and tracking, delivery status, and customs
tasks, often leasing warehouse space and either owning their own fleet or outsourcing delivery to
a 2PL (Jenkins, 2023). Fourth party logistics providers, also known as 4PL or LLPs, are
responsible for optimizing the entire supply chain and overseeing transportation management,
warehouse activities, and other moving parts of the supply chain, such as Amazon. Lastly, fifth
party logistics or 5PL providers work closely with a company's in-house departments, managing
logistics solutions and overseeing multiple 3PLs and 4PLs on behalf of the client, particularly in
the e-commerce sector (Seaspace International Forwarders, 2022).

Locad, a cloud logistics network across Asia-Pacific, emphasizes the importance of

regular optimization of logistics as it helps businesses identify and address inefficiencies in their
supply chain, leading to cost savings and improved operational efficiency. It allows businesses to
adapt to changing market conditions, customer demands, and industry trends, ensuring that their
logistics processes remain competitive and effective. By regularly reviewing and optimizing
logistics, businesses can identify areas for improvement, such as reducing transportation costs,
optimizing inventory levels, or streamlining order fulfillment processes. It can help businesses
leverage new technologies and innovations, stay ahead of the competition by continuously
improving their logistics operations, enhancing customer satisfaction, and maintaining a
competitive edge in the market (Regie, 2023).
 However, online businesses must overcome a number of obstacles in order to guarantee
efficient operations and client satisfaction. Challenges include inventory management, order
fulfillment, shipping and delivery, last-mile delivery, reverse logistics, technology integration,
internal logistics, and customer service challenges (Regie, 2023). Inventory management
challenges include maintaining accurate inventory levels and managing returns and exchanges
effectively. Order fulfillment challenges involve timely and efficient processing of orders,
picking, packing, and shipping products to customers. Shipping and delivery challenges include
selecting the right shipping partners, managing shipping costs, and meeting customer
expectations for fast and reliable delivery. Last-mile delivery challenges arise in delivering
products to the customer's doorstep, especially in urban areas or remote locations. Reverse
logistics challenges involve managing returns, exchanges, and refunds, including the cost and
complexity of reverse logistics processes. Technology integration challenges include integrating
various systems and technologies to ensure seamless operations. International logistics
challenges encompass dealing with customs regulations, cross-border shipping, and managing
international supply chains for global e-commerce operations. Customer service challenges
involve providing prompt and effective customer support and resolving issues related to orders,
deliveries, and returns. E-commerce companies can get past these difficulties and set up
effective, client-focused logistics operations by addressing these issues through strategic
planning, process optimization, technology implementation, and partnerships with dependable
logistics providers.

On the contrary, if these challenges are not managed properly and smoothly, then the
satisfaction of the customers will inevitably be affected. A prime example would be the infamous
mishandling of packages of the Philippine logistics franchise of J&T Express during the
pandemic. During the pandemic, unusual consumer behavior resulted in stockpiling, which drove
up revenues. Even the largest e-commerce companies faced significant challenges from
unanticipated demand because high order volumes necessitate advance planning, demand
estimations, and resource allocation. Due to additional COVID-safety measures, warehouses had
to deal with a decreased workforce, tighter transportation restrictions, and rising costs (InfoSys
BPM, 2020). During that time, J&T Express has come under fire as a result of a widely
circulated viral video showing employees mishandling packages in one of their warehouses.
Aside from the appalling negligence with which they loaded the delivery truck, some of the
workers were observed to be "shirtless," without any safety equipment, not even face masks.
Within a few hours of being uploaded, this leaked video had thousands of shares and rapidly
gained public attention. The public is unforgiving, especially during a pandemic when people
need trustworthy courier services and business owners are scrimping and saving to keep their
operations running (Espie, 2022). The spread of the said video had affected the customers'
satisfaction heavily since the customers and even sellers needed to communicate to each other if
the packages were damaged. Customer satisfaction with 3PL's packaging and handling of goods
is an important aspect in the logistics industry. Several studies have been conducted to analyze
the relationship between customer satisfaction and various factors in the context of third-party
logistics (3PL) enterprises. The studies have used different methods such as structural equation
modeling, grey correlation analysis, and fuzzy comprehensive evaluation to measure customer
satisfaction. Even though third-party logistics has received considerable attention from logistics
scholars in the recent past, existing literature still indicate s that only a few studies were
conducted in the Philippines. Moreover, different literature are limited to numbers of factors but
don't cover all other factors that may affect the consumers' satisfaction of 3PLs. Taking all of this
into account, the current study aims to investigate how 3PL's packaging and handling of goods
affect customer satisfaction in the Philippines. The study has a quantitative approach that will
use a survey questionnaire with Shopee, Lazada, and Tiktok shops customers as the participants.
The three e-marketplaces to be studied are among the top 5 e-commerce in the Philippines.
 LITERATURE REVIEW

This part of the study covers the review of relevant theories, related literature and studies.
At the end of this portion, a synthesis of the reviewed related literature is presented.

Ghoumrassi and Tigu (2018) designed a semi-structured interview using literature

reviews that relate customer satisfaction with logistics management. Managers were interviewed
to understand their opinions on the logistics strategies their suppliers should implement in order
to improve their customers' satisfaction. Based on the results, the ranking of categories in order
of importance for increasing customer satisfaction is as follows: Suppliers with logistics skills
and knowledge are identified as the most important category for increasing customer satisfaction.
Managers require their suppliers to have good knowledge and logistics skills to adapt to any last-
minute changes in the product life cycle. Green logistics solutions or eco-friendly and reverse
logistics are ranked second in importance. This category refers to using eco-friendly packaging
and transportation methods. Managers emphasize the importance of considering the environment
and require their suppliers to use modern and eco-friendly packaging methods. Fragile and
leanness logistics solutions, which include lean and agile solutions, are ranked third in
importance. These solutions directly impact customer satisfaction by ensuring on-time delivery
and quickness of delivery. Sharing ICT and logistics performance measurement system is ranked
as less important compared to the other categories. Managers explain that it is not feasible to
have one system for all clients, considering the diverse needs and requirements of different
customers. However, this study only examined the managers' perception, and does not really
consider the customers' perspectives of the logistics service provider.

More other studies, on the other hand, focused on the perception of the customers. An
example would be the study of Moschuris and Velis (2020) indicating that customers are
generally satisfied with the service offered by 3PLs, including the outfit and knowledge of
personnel, speed of service, and quality of services offered. However, there are areas for
improvement, such as reducing hold times at call centers. Respondents in the study identified the
long hold time at the call center as a significant problem that leads to customer dissatisfaction.
The extended wait times on the phone can cause frustration and confusion among customers,
leading to a negative customer experience. A previous study (Chen & Qi, 2019) established a
customer satisfaction index system for 3PL services in online shopping. The index system
considers eight factors: logistics service speed, logistics service price, service personnel quality,
accuracy, integrity, logistics information timeliness, error processing quality, and customer
perceived risk.

A number of studies were particularly carried out in Sri Lanka. In a study conducted in
the said country, Hettiarachchil and Ranwala (2022) found out that the determinants of customer
satisfaction in 3PLs include (1) tangible, image, and trust, (2) empathy and relationship, (3)
reliability and responsiveness, and (4) assurance. It is concluded that 3PL providers in Sri Lanka
must focus on these factors to enhance customer satisfaction and build strong and long-lasting
relationships with their customers. Another study (Seneviratne and Wasantha, 2018) conducted
in Sri Lanka determined different factors influencing 3PL customers in the apparel sector in the
country, this includes trust, flexibility, effective communication, openness & transparency,
effective partnering & collaboration, financial considerations, condition fulfillment, and
customer relationships. Egodawela and Wijayanayake (2021) also conducted a similar systematic
review process in Sri Lanka. Customer handling, tech initiation, competitive prices, and
flexibility were found to have a significant impact on dependent variables such as customer
loyalty, switching behavior, and customer complaints. These results can be utilized by service
providers to realign their offerings and meet the demands of their customers, potentially helping
Sri Lanka become a logistics hub for the region

According to Mentzer et al. (2021), the order quality, delivery quality, customer service,
and delivery cost are the four primary aspects that affect the quality of a logistics service
associated with online shopping. Yoon (2020) came to the conclusion that factors influencing the
total quality of a logistics service include the quality of the order, the quality of the delivery,
customer service, and the delivery cost. The study looks at how each of these influences the
quality of logistics services and how perceived value of logistics affects customer satisfaction
and loyalty.
 Yuan et al. (2022) developed a logistics service quality-customer loyalty model (LSQ-CL
model) to measure the impacts of third-party logistics on customer loyalty. Operational service
quality, relational service quality, and cost quality were identified as factors influencing
customer satisfaction. Operational service quality was found to have the most significant positive
impact on customer satisfaction, followed by relational service quality, while cost quality had the
least impact. Relational service quality was found to have significant positive impacts on both
operational service quality and cost quality. Customer satisfaction was found to have a
significant impact on customer loyalty, with a large path coefficient between them.

Daehon and his colleagues (2019) examined the impact of the quality of online shopping
logistics services on customer satisfaction and subsequent repeat purchasing behavior. The
research conducted surveys targeting 150 young Chinese customers with online shopping
experience, representing the e-commerce sector in China. The empirical analysis revealed that
logistics service quality, particularly the quality of delivery, had a statistically significant impact
on customer satisfaction. Customer satisfaction, in turn, had a statistically significant impact on
repeat purchasing behavior. These findings provide insights into the strategy behind China's
rapidly growing online shopping industry, which emphasizes long-term customer relationship
management and stability.

A recent study (Siber et al., 202) aimed to fill the research gap on e-commerce logistics
service quality and its impact on customer satisfaction and loyalty. Data from 1562 e-commerce
customers in Turkey were collected through a web-based survey. The results, analyzed using
structural equation modeling, revealed that timeliness, order condition, order accuracy, and order
discrepancy handling positively affect customer satisfaction. Additionally, a positive relationship
between customer satisfaction and loyalty was identified. This research provides insights into the
factors that contribute to customer satisfaction in e-commerce logistics services and highlights
the importance of customer satisfaction in driving loyalty.

Octavian et al. (2021), having the same objective as other studies mentioned here,
examined the factors influencing E-commerce satisfaction in Romania and Moldova. The paper
analyzed 11 factors that influence e-commerce satisfaction in Romania and Moldova. These
factors can be categorized into eight aspects that significantly impact e-commerce satisfaction.
The identified factors include website design, product variety, product information, price
competitiveness, delivery speed, payment options, customer service, and return policy. These
factors were determined through multiple linear regression analysis and multivariate analysis of
variance.

Based on this theoretical background, scholars in this field commonly propose that the
factors impacting logistics service quality are as follows: speed of service, customer service and
reverse logistics, flexibility, service quality, service price, quality of information, order quality
and condition, and order accuracy.

Synthesis of the Review of Related Literature

Scholars have shown interest in probing the impact of different factors involved in third-
party logistics on customers' satisfaction. Through a literature search aided by keywords such as
"logistics", "third-party logistics", "3PL," "e-commerce", "customer satisfaction", and "customer
loyalty", a total of twenty-five (25) pieces of literature were gathered. The studies were generally
descriptive and quantitative in nature. Numerous factors were identified with varying degrees of
influence on the satisfaction of customers. The factors obtained from these studies include speed
of service, customer service and reverse logistics, flexibility, service quality, service price,
quality of information, order quality and condition, and order accuracy. Overall, these studies
have limitations as some are limited to a small number of respondents which may affect the
accuracy of the data while some focus on limited factors perceived only by their importance.
This means that it would be beneficial to investigate other variables to measure the relationship
between 3PL's handling and packaging of goods and customer satisfaction. These studies are also
limited to a certain area, therefore, it is imperative to conduct a study in the Philippines to
explore its implications in the country and to enhance the generalizability of the previous studies'
findings.
 Conceptual Framework

The McGrath (2020) input-process-output model provides the framework for this study.
The process is represented by a series of boxes connected by inputs and outputs in the
framework. An IPO chart lists the study's inputs, outputs, and the steps that must be taken to
transform the inputs into outputs.

The input is what goes in; the process is what causes the change; and the output is what
comes out. The respondents which are the customers of Lazada, Shopee, and Tiktok shops,
together with the factors that can influence their satisfaction are all included in this study's input.
The researchers then carry out a series of steps, which is the process, such as data collection
which is through quantitative survey questionnaire, data analysis and data interpretation. Finally,
the study's output is the identification of the most influencing factor and the development of
recommendations that can be useful for e-commerce platforms and 3PLs to improve their service
quality.

Statement of the Problem

 The study aims to investigate the levels of customer satisfaction with selected e-commerce
platform that are using 3PL's such as Shopee, Lazada, and TikTok shops. This research seeks to
address the following key issues:

1. To what extent are customers satisfied with the performance of selected e-commerce
platform that are using 3PL's?

2. Are there significant differences in customer satisfaction of selected e-commerce

platform that are using 3PL's?

3. What specific factors, such as speed of service, customer service and reverse logistics,
flexibility, service quality, service price, quality of information, order quality and
condition, and order accuracy, contribute to variations in customer satisfaction with the
selected e-commerce platforms?

4. How does customer satisfaction with 3PL packaging and handling impact overall
satisfaction with e-commerce platforms and the likelihood of repeat purchases?

By exploring these questions, this study seeks to provide valuable insights into the quality of
E-commerce platforms and 3PL services and its implications for e-commerce customer
satisfaction and loyalty.

Significance of the Study

The results of the study were valuable to the customers, third party logistics, e-commerce
shops and in the future researchers.

To the customers: Through this study, they can express their level of satisfaction with
the selected e-commerce platforms Shopee, Lazada, and TikTok Shops, and indicates the
problems they have encountered when ordering from these platforms.

To the Third Party Logistics: This study offers an opportunity to enhance customer
experiences enabling 3PLs to make data driven decisions and gain a competitive advantage.

To the e-commerce shops: Through this study, e-commerce shops can identify the
concerns of customers, which will help them focus on areas where they can enhance customer
satisfaction and retention.
 To the future researchers: This study can serve as a starting point for future research
into the complex dynamics between e-commerce, 3PLs, and customer satisfaction. It may inspire
more in-depth investigations in this area. Also, the future researchers can draw from the
methodology used in this study when designing their own research projects, especially those
focusing on customer satisfaction in e-commerce.

Hypothesis

There are significant differences in customer satisfaction of selected e-commerce platform

that are using 3PL's among customers of Shopee, Lazada, and TikTok shops.

Scope and Delimitation of the Study

This study focuses on assessing customer satisfaction of the selected e-commerce platforms
that are using third-party logistics providers (3PLs). The research primarily targets customers of
three major e-commerce platforms: Shopee, Lazada, and TikTok shops. It employs a quantitative
research design and uses survey questionnaires as the primary data collection method. The study
aims to investigate the factors influencing customer satisfaction, such as speed of service,
customer service and reverse logistics, flexibility, service quality, service price, quality of
information, order quality and condition, and order accuracy. The study delimit to the customers
of Shopee, Lazada and Tiktok shops residing in Mabalacat City, Pampanga. The respondents are
ages Eighteen (18) to Fifty (50) years old that are randomly selected.

Definitions of Terms
 • Customer Satisfaction

Conceptual: Customer satisfaction is how satisfied customers are with a company's

products, services, and overall experience.

Operational: the researchers pertains to the degree to which customers are content with
selected e-commerce platforms that are usinng 3PLs when making e-commerce
transactions, often measured on a scale reflecting their level of contentment.

• Third-Party Logistics (3PLs)

Conceptual: Companies or organizations that offer logistics and supply chain

management services to e-commerce platforms, assisting in the handling, packaging, and
transportation of goods, often as intermediaries between businesses and customers.

Operational: The researchers refer to the 3PLs used by Shopee, Lazada, and TikTok
shops to package and handle goods.

• E-commerce Platforms

Conceptual: An e-commerce platform is a software that enables the commercial process

of buying and selling over the internet.

Operational: The researchers pertains to Shopee, Lazada, and TikTok shops where
customers can make purchases, and shops can sell their products or services.

These definitions provide a clear understanding of the key terms and concepts related to the
study of customer satisfaction with selected e-commerce platform that are using 3PL's.

CHAPTER 2
 RESEARCH METHODOLOGY

This chapter offers such support by outlining the research' setting in terms of established

study practices, giving details on how the study was conducted, the reasons it was conducted in

this manner, and the methods used to gather the results. It begins by providing a broad overview

of the study method. This is followed by a breakdown of the methodology's components, such as

the research design, respondents, the research instrument, validity and reliability of the

instrument, data collection process, statistical treatment, analysis, and ethical standards that are

appropriate for the study objective while answering the research questions.

Research Design

This study utilizes a quantitative research design, which involves the collection and

statistical analysis of numerical data. The methodology employs structured instruments,

specifically surveys, to obtain information from a large number of respondents. The researchers

will administer close-ended questionnaires to be answered by the respondents, utilizing a

convenience sampling approach.

An initial public online survey will be conducted to determine if residents of Mabalacat

City, Pampanga, are making purchases from e-commerce platforms that utilize third-party

logistics providers (3PLs) such as Shopee, Lazada, and TikTok shops. The primary survey will

be conducted based on the findings of the initial survey. In conducting the primary survey,

questionnaires will be distributed to respondents who answered that they have made purchases

from e-commerce platforms utilizing 3PLs like Shopee, Lazada, and TikTok shops.
 The researchers aim to gather data about customer satisfaction with the selected e-

commerce platforms using 3PLs. Descriptive statistics, a non-probability statistical method, will

be employed to focus on the fundamental characteristics of the dataset and provide a

straightforward summary. The researcher will simplify the data through tabulation and

presentation of the mean for each data point.

Research Locale

The research locale for this study includes customers of e-commerce platforms,

specifically buyers of products from Lazada, Shopee, and TikTok shops. The study may be

conducted online, with respondents from Mabalacat City, Pampanga based on the availability

and reach of these e-commerce platforms.

Respondents

The respondents in this study are individuals who have made purchases on the mentioned

e-commerce platforms. The researchers employed convenience sampling, a non-probability

method where data is gathered from an easily accessible and available group of people. Instead

of randomly selecting respondents from a specific population, convenience sampling involves

choosing respondents who are easiest for the researcher to obtain information from, particularly

those willing to respond to the close-ended questions regarding their experiences and satisfaction

in purchasing on the selected e-commerce platforms that utilize third-party logistics providers

(3PLs) like TikTok, Shopee, and Lazada shops.

The number of respondents will be determined based on the results of the initial public

online survey that the researchers will conduct. This initial survey aims to establish how many
respondents within Mabalacat City, Pampanga, have made purchases from selected e-commerce

platforms that utilize 3PLs such as TikTok, Shopee, and Lazada shops.

Research Instrument

The researchers utilized a survey questionnaire as their data collection instrument. These

questionnaires, made by the researchers, aim to gather information about customer satisfaction

and specific factors influencing variations in satisfaction with selected e-commerce platforms.

These factors include speed of service, customer service, reverse logistics, flexibility, service

quality, service price, quality of information, order quality and condition, and order accuracy.

An initial survey will be conducted to determine whether respondents in Mabalacat

City, Pampanga, are making purchases from e-commerce platforms that use third-party logistics

providers (3PLs) such as TikTok, Shopee, and Lazada shops. The primary survey will then be

conducted based on the findings of the initial survey. During the primary survey, questionnaires

will be distributed to respondents who willingly participated in the initial survey and indicated

that they have made purchases from e-commerce platforms utilizing 3PLs like Shopee, Lazada,

and TikTok shops. This approach facilitates the analysis of customer satisfaction levels with the

selected e-commerce platforms utilizing 3PLs among the respondents.

A Likert scale is employed as the research instrument, covering aspects such as speed of

service, customer service, reverse logistics, flexibility, service quality, service price, quality of

information, order quality and condition, and order accuracy. Respondents express their opinions

using options like Strongly Satisfied (4), Satisfied (3), Dissatisfied (2), and Strongly Dissatisfied

(1). This scale provides a structured means for respondents to convey their views on the survey

questionnaire in the study.

Data Collection

The researchers prepared questionnaire, which will be distributed online to the

respondents along with a letter requesting their participation in the study. The researchers

explained the study's objectives and provided guidance on answering the survey questionnaire to

the respondents. Additionally, the researchers clarified the relevance of respondents' responses to

the study and informed them of their rights. It was also emphasized that all gathered data would

be treated with utmost confidentiality.

A one-week timeframe was allocated for the data collection of the survey questionnaire.

The respondents, who are customers of specified e-commerce platforms utilizing third-party

logistics (3PLs) and residing in Mabalacat City, Pampanga, were the focus of the study.

Simultaneously, respondents were given ample time to carefully consider and provide thoughtful

responses regarding their satisfaction with purchasing from e-commerce platforms such as

Shopee, Lazada, and TikTok shops, which utilize 3PLs.

Statistical Treatment of Data

To systematically organize the examined data and address the research question, various

statistical methods will be employed by the researcher. Following the collection of data through

the questionnaire, this study utilized straightforward statistical methods for result analysis. The

data was summarized, tabulated, examined, and interpreted. The study employed the following

statistical methods:

1. Percentage: This method illustrates how the constituent parts relate to the total.

Researchers converted percentages to proportions by multiplying by 100. The equation

used is:
 P = f/n×100

Where:

P = percentage

f = frequency

n = number of respondents

2. Weighted Mean: This method measured the central tendency of the frequency

distribution and the respondents' ratings on the questionnaire. The equation used is:

X= ∑fxN

Where:

N = Total number of respondents

X = Weighted Mean

f = Frequency

x = Scale Rate

This served as an illustration of how respondents answered the question about customer

satisfaction with selected e-commerce platforms using 3PLs.

The derived mean values will be interpreted using the following four-point scale:

Scale Range Interval Verbal Description

Value
4 3.25-4.00 Strongly Satisfied
3 2.50-3.24 Satisfied
2 1.74-2.49 Dissatisfied
1 1.00-1.74 Strongly Dissatisfied
Ethical Considerations

To successfully conclude this study, the researchers ensured that all respondents in this

study were thoroughly briefed on the research objectives, procedures, and their rights as

respondents. Explicit consent was obtained from them to participate in the study. The researchers

also took measures to protect the privacy of respondents by securely collecting and storing their

data. Respondents were assured that their responses would be treated with confidentiality, and

their personal information would not be disclosed. The researchers made certain that

participation in the research was entirely voluntary, and respondents did not feel coerced or

pressured to take part.

In addition, the researchers implemented measures to minimize any potential harm or

discomfort to respondents during the data collection process. Sensitivity to the feelings and

experiences of respondents, particularly when discussing negative feedback, was a priority. The

research was conducted in an unbiased and impartial manner, avoiding leading questions or any

form of bias that could impact the validity of the results. The researchers reported the research

findings truthfully and accurately, steering clear of any manipulation or distortion of data.
REFERENCES:

Alvarez, R. (2022, June 23). Types of logistics providers explained in plain English. Retrieved
from https://www.shiplilly.com/blog/types-of-logistics-providers-explained-in-plain-english/

Arul. (2019). A Review Paper on E-Commerce. Journal of emerging technologies and innovative
research, 6(3):557-560-557-560.

Asian, S., Pool, J. K., Nazarpour, A., & Tabaeeian, R. A. (2019). On the importance of service
performance and customer satisfaction in third-party logistics selection: An application of Kano
model. Benchmarking, 26(5), 1550–1564. https://doi.org/10.1108/BIJ-05-2018-0121

Be Global (2023). E-Commerce in the Philippines: Opportunities and challenges. Be Global E-

Commerce Corporation. Retrieved from https://beglobalecommercecorp.com/e-commerce-in-
the-philippines-opportunities-and-challenges/

Be Global (2023). Top 5 e-commerce marketplaces in the Philippines. Be Global E-Commerce

Corporation. Retrieved from https://beglobalecommercecorp.com/top-5-e-commerce-
marketplaces-in-the-philippines/

Chan, N. (2023). Filipino Online Shopping behavior: Statistics & Trends you need to know.
Spiralytics. Retrieved from https://www.spiralytics.com/blog/filipino-online-shopping-behavior-
statistics-trends/?fbclid=IwAR0QhDSQCIe6PR9xygbBaIduO4dHPBB-
l3mQBe59R_ec5cLizfGVWnOaSLQ

Chen, Y.G. (2020). B2B, B2C and Virtual Enterprise Management Systems. 118-127. doi:
10.46532/JEBM.20201205

Chen & Qi (2019). The Evaluation of Customer Satisfaction with the Third Party Logistics
Service Quality for Online Shopping. DOI: 10.13189/aeb.2016.040501

Chen C.L., Lin D.P., Chen H.C., Deng Y.Y., Lee C.F. (2019). Design of a Logistics System with
Privacy and Lightweight Verification. Energies, 12(16):3061-. doi: 10.3390/EN12163061

Daeheon, Choi., Chune, Young, Chung., Jason, Young. (2019). Sustainable Online Shopping
Logistics for Customer Satisfaction and Repeat Purchasing Behavior: Evidence from China.
Sustainability, 11(20):5626-. doi: 10.3390/SU11205626

De Rezende, E. P. (2023). ELECTRONIC COMMERCE (E-COMMERCE). Revista Gênero E

Interdisciplinaridade, 4(04), 162–177. https://doi.org/10.51249/gei.v4i04.1452
DSV (2020). What does 1PL, 2PL, 3PL, 4PL and 5PL mean?. https://www.dsv.com/en-be/about-
dsv

Egodawela S , Wijayanayake A , Peter P (2021). Determinant of factors affecting customer

satisfaction: Case of the logistics industry in Sri Lanka.
https://www.mendeley.com/catalogue/9de3cd93-5e49-3ba0-b412-a6379d4ea914/

Espie, M. (2022). Online Reputation Management: How do you solve a problem like J&T
Express? Content Marketing Services Philippines. Retrieved from
https://mariaespievidal.com/online-reputation-management/?
fbclid=IwAR3D62LkrWjLsVTJ30Vxd_B1XGw0ltsEKJRrnitaS7SU_1jcc4sJRQYp8YA

Feng, Jia-dong. (2012). The Third-Party Logistics Industry's Customer Satisfaction. Logistics
Sci-tech

Ghoumrassi,A. & Tigu,G.(2018).The impact of the logistics management in customer

satisfaction. Proceedings of the International Conference on Business Excellence,12(1) 407-415.
https://doi.org/10.2478/picbe-2018-0036

Gilly, M.C, Wolfinbarger, M. (2000). A comparison of consumer experiences with online and
offline shopping. Consumption Markets & Culture, 4(2):187-205. doi:
10.1080/10253866.2000.9670355

Halim, E. (2019). Determinants of online shopping in manado. 1(4):1787-.

Hart, K. (2020). E-Commerce Systems and Configuration Management for Virtual Enterprises.
178-187. doi: 10.46532/IJAICT-2020035

HettiarachchiL & Ranwala (2022). Determinants of Customer Satisfaction in Third Party

Logistics Outsourcing Relationship in Sri Lanka. https://www.mendeley.com/search/?
query=Customer+satisfaction+on+third+party+logistics+&dgcid=md_homepage

Ilchenko N. & Freiuk O. (2020). Evolution of logistics management concepts in e-commerce.

5(1):56-62. doi: 10.30525/2500-946X/2020-1-7

InfoSys BPM. (2020, September 22). 3PL Challenges and solutions in the new normal | InfoSys
BPM. Retrieved from https://www.infosysbpm.com/blogs/sales-fulfillment/3pl-challenges-and-
solutions.html
Ismail T., Fouad A., Mharan A. (2021). The relationship between logistics performance and
customer loyalty in manufacturing companies using (3PLs) services in Egypt. DOI:
10.21608/ajccr.2021.211512

Jenkins, A. (2023). What is a Logistics Service Provider (LSP)? Types and services offered.
Oracle NetSuite. Retrieved from https://www.netsuite.com/portal/resource/articles/inventory-
management/logistics-service-providers.shtml

Kenton, W. (2023). Logistics: What it means and how businesses use it. Investopedia. Retrieved
from https://www.investopedia.com/terms/l/logistics.asp

Krishnamoorthy D., Sandhiya, M. (2020). A study on e-logistics service quality and its impact
on customer satisfaction in e-commerce industry. The Journal of Contemporary Issues in
Business and Government, 26(2):849-857. doi: 10.47750/CIBG.2020.26.02.121

Lee, C., Park, N., & Park, S. (2008). A study on the effects of delivery service quality on
customer satisfaction in Internet apparel shopping mall. E-Trade Review, 6(2), 23-44.

LI, Jin-fei. (2006). Evaluation on Customer Satisfaction Degree in Third Party Logistics.
Industrial Engineering Journal

Liu & Fang. (2009). Study on the Relationship between Customer Satisfaction and 3PL Costs.
DOI: 10.5539/ijbm.v4n6p23

Lobna, Hafez., Eman, Elakkad., Mohamed, Gamil. (2021). A Study on the Impact of Logistics
Service Quality on the Satisfaction and Loyalty of E-Shoppers in Egypt. Open Journal of
Business and Management, 09(05):2464-2478. doi: 10.4236/OJBM.2021.95133

Mai, T. (2023). What are the top 10 eCommerce sites in the Philippines – Updated 2023.
Magenest - One-Stop Digital Transformation Solution. Retrieved from
https://magenest.com/en/top-ecommerce-sites-in-philippines/?fbclid=IwAR2IO-
hPaFB3ZSrQcZxYrcyZZxBti31n0y9FfVFBLmACY6_P42yX82bGyto

Marasco, A. (2008). Third-party logistics: A literature review. International Journal of

Production Economics, 113(1), 127–147. https://doi.org/10.1016/j.ijpe.2007.05.017

McDougall, G. H., & Levesque, T. (2000). Customer satisfaction with services: putting
perceived value into the equation. Journal of services marketing, 14(5), 392-410.

Mentzer, J. T., Flint, D. J., & Hult, G. T. M. (2021). Logistics service quality as a segment-
customized process. Journal of marketing, 65(4), 82-104.
Moschuris, S. J., & Velis, G. F. (2020). Customer Perceptions on Service Satisfaction with Third
Party Logistics (3PL) Service. International Journal of Applied Logistics, 3(4), 33–47.
https://doi.org/10.4018/jal.2012100103

Nebojša, Vasić., Milorad, Kilibarda., Milan, Andrejic., Srđan, Jović. (2021). Satisfaction is a
function of users of logistics services in e-commerce. Technology Analysis & Strategic
Management, 33(7):813-828. doi: 10.1080/09537325.2020.1849610

Octavian, Dospinescu., Nicoleta, Dospinescu., Ionel, Bostan. (2021). Determinants of e-

commerce satisfaction: a comparative study between Romania and Moldova. Kybernetes, doi:
10.1108/K-03-2021-0197

Park, J. S. (2006). A study of structural relationships between logistics service quality, customer
satisfaction, customer loyalty in internet shopping malls (Doctoral dissertation, Myungji
University Graduate School).

Pavan K. A., Nirmaladevi N. (2019). A Study on Customer’s opinion with regard to Online
Shopping. IRA-International Journal of Management & Social Sciences, 3(3) doi:
10.21013/JMSS.V3.N3.P14

Regie. (2023). E-commerce Logistics: A complete guide [+Template] | LOCAD. Locad.

Retrieved from https://golocad.com/logistics/

Salehi, F., Abdollahbeigi, B., Langroudi, A. C., & Salehi, F. (2018). The impact of website
information convenience on e-commerce success of companies. Procedia - Social and Behavioral
Sciences, 57, 381–387. https://doi.org/10.1016/j.sbspro.2012.09.1201

Salini, Devi, Rajendran., Siti, Norida, Wahab., Yeow, Way, Ling., Lim, Shin, Yun. (2018). The
Impact of Logistics Services On The E-Shoppers' Satisfaction. International Journal of Supply
Chain Management, 7(5):461-469.

Seaspace International Forwarders. (2022). Differences between different types of logistics

management. Seaspace International Forwarders. Retrieved from https://www.seaspace-
int.com/differences-between-different-types-of-logistics-management/

Şehirli, E., & Orak, İ. M. (2020). E-commerce according to hobby. Procedia - Social and
Behavioral Sciences, 143, 1144–1147. https://doi.org/10.1016/j.sbspro.2014.07.568

Seneviratne and Wasantha Premarathne. (2018); FACTORS AFFECTING THE

SATISFACTION OF THIRD PARTY LOGISTICS (3PL) CUSTOMERS IN THE APPAREL
SECTOR IN SRI LANKA. Int. J. of Adv. Res. 5 (Sep). 431-442] (ISSN 2320-5407).
www.journalijar.com

Setthakaset, P., & Basnet, C. (2005). Third party logistics in Thailand — from the users’
perspective. In Physica-Verlag eBooks (pp. 203–218). https://doi.org/10.1007/3-7908-1636-1_14

Shashank, Rao., Thomas, J., Goldsby., Stanley, E., Griffis., Deepak, Iyengar. (2011). Electronic
logistics service quality (e-LSQ): Its impact on the customer's purchase satisfaction and
retention. Journal of Business Logistics, 32(2):167-179. doi: 10.1111/J.2158-1592.2011.01014.X

Siber, Akil., Mustafa, Cahit, Ungan. (2022). E-Commerce Logistics Service Quality: Customer
Satisfaction and Loyalty. Journal of Electronic Commerce in Organizations, 20:1-19. doi:
10.4018/jeco.292473

Suharto M., Ardhianto D.T., Ismail A.I, Prameswari, N.S. (2018). The Phenomenon of Online
Shopping in the Digital Age: Why Do People Like It?. 4(1):327-330. doi: 10.2991/BCM-
17.2018.63

Xie, J., & Wang, L. (2021). Collaborative innovation of E-Commerce enterprises based on
FPGA and convolutional neural network. Microprocessors and Microsystems, 80, 103595.
https://doi.org/10.1016/j.micpro.2020.103595

Yoon, S. H. (2020). The Influence of the Logistics Service Quality on Logistics Value. Customer
Satisfaction, and Customer Loyalty of Internet Shopping Mall in China, 15(3), 125-154.

Yoon, Seong, Hwan. (2011). The Influence of the Logistics Service Quality on Logistics Value,
Customer Satisfaction, and Customer Loyalty of Internet Shopping Mall in China. The Journal of
International and Area Studies, 15(3):125-154.

Yuan, W., Fan, J., Zhao, D., & Zhang, M. (2022). Empirical study on the impact of third-party
logistics service quality on customer loyalty. Journal of University of Science and Technology of
China, 47(6), 508–513. https://doi.org/10.3969/j.issn.0253-2778.2017.06.009

Yu Liu (2015). An Empirical Study on Customers’ Satisfaction of Third-Party Logistics Services

(3PLS). DOI: 10.2991/icemct-15.2015.282

Zhao, Y.H. (2009). Evaluation Model of Third Party Logistics Customer Service Quality Based
on KPI. Logistics Sci-tech.

Zoho Corporation (2023). What is logistics management?.

https://www.zoho.com/inventory/what-is-logistics-management/