Changing Scenario of the India E-Commerce Logistics Market post-Pandemic: Explore the key trends that are driving INR 170 In Market: Ken Research
Changing Scenario of the India E-Commerce Logistics Market post-Pandemic: Explore the key trends that are driving INR 170 In Market: Ken Research
E-commerce Logistics Market is at an early growth stage and has evolved as an organized market structure. Changes in consumer behavioral pattern and existing inconvenience in the offline retail market has led to the evolution of the industry. The industry has flourished due to changing consumer shopping preferences from physical stores to online marketplaces from the comfort of their homes. The E-commerce Logistics Industry has grown at a CAGR of 24 % on the basis of revenue.
Other Challenges In India E-Commerce Logistics Market Outlook to 2025
- India is witnessing a huge rise in Number of Internet Subscribers which are translating into a rise in Online Shoppers in the country.
With rural population accounting for around 2/3rd of the Indian population, coupled with affordability of smart phones and data plans, internet penetration has reached ~700 Mn users as of 2020. The number of Online Shoppers in India are expected to increase to ~350 Mn in 2025 owing to increased demand from largely untapped Tier II cities such as Ludhiana, Rajkot and more. Intense competition among players in the industry has seen a general rise in acquisitions. Top players like Amazon are acquiring smaller rivals to increase their market share. Adoption of Indian regional languages by retailers have also led to regional customers exploring various ecommerce platforms. Regional language content users account for ~75% internet users by 2021.
- E-Commerce Hubs are Concentrated in Tier 1 Cities Owning to Large and Digitally Literate Consumer Base with Decent Purchasing Power.
Currently more than ~60% demand comes from metro and tier I cities. However, this share is expected to come down in future, as in tier II and lesser cities will become new demand centers driven by increased internet penetration, increase in number of Smartphone users, rise in per capita income and increasing propensity to purchase online. E-commerce firms are expanding to Tier 2 cities as operating costs are 30%-50% lower there. Better internet connection with almost free bandwidth, vernacular language enabled by e-commerce, easy payments such as scan and pay are contributing factors to the growth.
- E-Logistics Market is Witnessing Massive Transformation and has Led to Entry of Tech-Advanced Players.
Logistics companies have started providing parcel locker facility to their customers to collect and receive a parcel as per their convenience. Major E-commerce players such as Flipkart, Accel Partners, Delhivery and Foxconn have pumped $9 million in the locker service provider start up Qikpod. Moreover, 27% of MSMEs use e-commerce platform for their business and are facing huge logistic costs due to low order volume. Logistics aggregators such as Shiprocket, Getgo logistics, Vamaship, E-Courierz are attempting to bridge the existing challenge faced by SMEs by catering to the low shipment demand at competent prices. Furthermore, Amazon uses automated algorithm to find optimal 3pl logistic provider by taking into data base of past deliveries and other operational parameters. Smart logistics has resulted in 10% reduction in vehicle usage and 30% reduction in travel distances.
- Rise in E-commerce Penetration has led to increase in funding in E-commerce Logistics Market of India.
Retail linked e-commerce has been driving significant investment and value for the Indian logistics sector, and has emerged as a crucial segment of the logistics spectrum. Additionally, there has been significant number of investments, with global companies looking at India as a favorable market. Dominant e-commerce retail platforms are looking at investing in their captive logistics arms in order to increase capacity, expand reach and ensure speed to market, enabled by a strong technology backbone. Due to increased demand owing to rise in internet penetration, multiple new age companies such as Xpressbees, Ecom Express has entered the market with dedicated focus on ecommerce logistics.
Key Segmentations Covered in India E-commerce Logistics Industry:-
By Shipment Location (Number of Shipments)
- Domestic
- International
By Type of Logistics Player (Revenue)
- Third Party Logistics
- In-House Logistics
By Major Product Categories (GMV)
- Electronics
- Apparel
- House Furnishing
- Personal Care
- Books
- Others
By Delivery Time (Number of Shipments)
- Same Day Delivery
- One Day Delivery
- Two-Four Day Delivery
- Four and More than Four Day Delivery
By Cities (Number of Shipments)
- Delhi/NCR
- Bangalore
- Mumbai
- Hyderabad
- Chennai
- Kolkata
- Ahmadabad
- Others
By Payment Mode (Number of Shipments)
- Cash on Delivery
- Pre-paid
By Product Return Rate (Number of Shipments)
- Accepted
- Return/Replaced
- Wrong Item Received
- Product Not Matching
- Damaged Product
- Others
Key Target Audience:
- E-commerce Companies
- Third Party Logistic Companies
- Potential Market Entrants
- E-Retailers
Time Period Captured in the Report:
- Historical Period– FY’2015-FY’2020
- Forecast Period – FY’2020-FY’2025F
Contact Ken Research:
Ankur Gupta
Head Marketing and Communications
+91-9015378249
