E-commerce has revolutionized the way business is conducted in India. The Indian e-commerce market is expected to grow to US$ 200 billion by 2026 from US$ 38.5 billion as of 2017(Please mention source). As the Digital wave of Internet and Smartphones penetrates India, it creates more users on the internet, adding around 6 million new entrants every month. The E-tail Market is currently growing at a CAGR of over 35 percent as per India Brand Equity Foundation.
As consumers increasingly turn to online e-commerce websites for all their shopping needs, quick delivery isn't just a "a luxury"it's the expectation of every online shopper’s experience. If logistic companies and ecommerce brands want a shot at overcoming the ever growing threat of Amazon Prime, the logistics services need to be at power. Today most of the Disgruntled customers of E-commerce brands face this common Problem "My order arrived late!". This is the problem the e-commerce industry is facing today.
This poses a unique proposition of challenge, as well as opportunity for Logistics players. The demand definitely exists in the market, as long as you can successfully solve the Last Mile challenges. Focus needs to be on the customer, keeping in mind that Logistics Service Providers are the key point of contact between the seller and the buyer. Last mile in India comes with its own challenges, and all the courier companies work towards bettering it. A logistics player that has
stringent processes and technology focussed on improving the conversion ratio and getting the deliveries done on or before the "promised delivery date” is key for the seamless execution of deliveries. The promised delivery date is the key metric for e-commerce players, as this is the date displayed to the buyer when purchasing online. A customer’s loyalty and trust towards the brand and ultimately customer experience comes into the picture, thereby creating an impact on the brand value. This is especially important for the online pharma sec¬tor, where medicines need to arrive on, if not before time. Logistic companies need to closely work with E-commerce companies to better the most crucial part of their supply chain, so that they can improve customer satisfaction and grow their business. This applies to both enterprise, as well as small & medium businesses as last mile is equally important in both cases i.e. for a big company to keep growing as well as an SME to compete with larger players.
As internet penetration increases in India, we shall see a huge growth in orders from rural areas along with the development of logistics networks in these areas
E-commerce has changed the traditional concept of Logistics, where shipments or goods were moved in bulk. As opposed to the typically fewer heavy shipments, now E-commerce logistics deals with high number of shipments, weighing much less (Around a Kilo). So this posed challenges in areas like tracking and last mile. This has given way to a huge dependence on automation technology for moving these shipments to all parts of the country. Logistic Service Providers are constantly hunting for ways to better their process.
As internet penetration increases in India, we shall see a huge growth in orders from rural areas along with the development of logistics networks in these areas. The continued and rapid growth will see rise in advanced technologies such as augmented reality, drones and advanced robotics to reduce costs. Companies that fail to keep up with logistics trends risk losing competitive advantage and falling out of favour with consumers. Thus, with this growth, the market will demand equally rapid growth and innovative responses from the transport and logistics sector. Companies such as Rapid Delivery are here to innovate and expand pin code coverage to fulfil the growing needs of Ecommerce companies.