A Study on the Selection Criteria of Delivery Method for Korean Cross-border E-commerce Companies Using AHP (Analytic Hierarchy Process)

This paper is to derive the evaluation criterion for selecting the optimal logistics delivery method as importance of export logistics delivery and its utilization in the B2C cross-border e-commerce increases. For this reason, this study applied a AHP method to find out what can be the best logistics delivery method for cross-border B2C e-commerce. This study takes into account four logistics delivery method such as EMS, international express, air transportation, and overseas warehouse. In the decision hierarchy, Level I consists of four factors such as delivery price (0.417), customer service (0.400), product delivery capacity (0.115), logistics cost (0.069). In addition, Level II has nine evaluation factors where delivery price was accounted for the largest with 0.288; the second criterion was delivery safety with 0.263; the third criterion was delivery price segmentation with 0.129. The final ranking is as follows: Overseas warehouse (0.433), international express (0.264), EMS (0.153), and air transportation (0.151). This implies that the superiority of overseas warehouse can be explained by the advantages mainly in the factors of delivery price and delivery safety so that it shall be the best channel for assisting cross-border e-commerce companies. The limitation of this study is that there can be a variety of delivery method in real life but this paper only considered four alternatives.