Ecommerce logistics, or e-logistics, represents the logistics of internet sales. Ecommerce logistics include many aspects like product handling, packaging, billing, labeling, inventory management, warehousing, transportation, payment, product return and exchange, and many more things. An e–commerce logistics company deals with the management of all the different aspects involved in ecommerce logistics. With Indian ecommerce logistics to be worth ₹492 bn by 2025 with 23% CAGR, managing logistics is the greatest challenge for any ecommerce company especially in a country like India with a vast territory.
The Indian ecommerce market is expected to grow to US$ 200 billion by 2026 from US$ 38.5 billion as of 2017. Much of the growth for the industry has been triggered by an increase in internet and smartphone penetration. But few other factors which are promoting ecommerce in India are:
· Ease of transactions
· Anytime, anywhere shopping
· Personalized Customization
· Advancements in Technology
Indian ecommerce logistics has seen exponential growth due to the growing ecommerce industry, investment in infrastructure, last-mile connectivity, and emerging technologies that are streamlining the logistics landscape in India.
One of the top logistics companies in India, Safexpress, is a market leader in supply chain and logistics. They offer solutions ranging from warehousing to timely distribution of goods across PAN-India. Safexpress B2C specializes in e–commerce logistics and supply chain management. Safexpress offers tech-enabled, real-time data capturing solutions to facilitate time-sensitive, hassle-free, safe warehousing and inter-modal express distribution through its enviable surface and SafeAir infrastructure across India. Safexpress ensures all ecommerce logistics solutions are aligned with clients’ specific business requirements.
Reasons for increasing demand for Ecommerce Logistics
Change in customer shopping patterns, increasing requirement of fast delivery services, and usage of technology to improve the customer experience have played a major role in the growth of ecommerce logistics.
· Rise in demand from Tier II and below cities
Ecommerce market penetration is mostly revolving around metro and tier I cities, but a change in shopping patterns of tier II and below cities is seen due to internet availability and mobile technology. With cheap data plans, increased usage of smartphones people are increasingly attracted to purchasing online. Increasing demand for products from these areas would require demand centers being set up to cater to this section thereby adding to the growth of ecommerce logistics.
· Technological Advancements
The adoption of new technological innovations has been extremely rapid in India to meet higher consumer expectations. To keep pace with digital commerce, technology has helped to revolutionize the ecommerce supply chain industry. Technologies such as IoT, advanced algorithms, data analytics, artificial intelligence (AI), and automation are emerging to streamline the ecommerce logistic operations of the companies.
· Government Regulations
Supportive government initiatives to boost infrastructure development and implantation of GST have improved the delivery of ecommerce goods across the country. With the government of India’s push towards digital initiatives to accelerate outreach and adoption of digital wallets, ecommerce sales will increase.
· Expansion of Supply Chain Network
Increasing accessibility to technology has ecommerce logistic companies focusing on establishing new fulfillment centers near the end consumers to increase delivery speed and cater to larger parcel sizes. With Tier II and beyond cities driving the growth, several logistics company in India is looking at expanding their network.
The ecommerce industry in India is flourishing due to internet penetration and mobile technology. Logistics company in India is evolving rapidly with the changing business requirements to cater to this enormous industry.