E-commerce in India is affecting logistics to a great extent. For a business owner, the growth of this market segment is creating new opportunities to tap into the new customer base for more growth. If we talk about the consumers’ aspect, this is making the shopping experience more comfortable, pocket-friendly, and convenient. Lastly, it is more like a golden opportunity for logistics companies to open up doors to more market opportunities. When it comes to e-commerce logistics India, it is growing with leaps and bounds. As per some reports, the retail online market grew to USD 48 billion in 2020. This has driven by the increased number of mobile and internet users, the rise in the use of digital payments, and more.
To find out more about e-commerce and its impact on logistics in India, keep on reading this blog post.
What are the challenges faced by normal logistics service providers in India?
The logistics industry in India is facing several challenges. These are the ones that are affecting the overall growth of this industry. Some of these challenges include the following:
- Lack of solid infrastructure: The logistics infrastructure of India is woefully scarce, as only 1-2% of the roads are tagged as national highways. This is resulting in higher costs of transportation and longer delivery times.
- Fragmented market: The logistics market of India is considered highly fragmented, as many small players are competing with each other. This is making things difficult for companies to have the right cost-cutting.
- Lack of experienced and certified professionals: This is one of the issues that is making the growth journey of India’s logistics and e-commerce businesses difficult. Due to this, the business cost will be higher, and productivity will be lower.
- Inadequate customs processes: The customs procedures of India are considered notoriously incompetent. This results in extra costs and delays for those who are operating here.
- Corruption: This is one of the issues that is making various industries and related procedures difficult. It is one of the reasons why the logistics industry of India has reduced efficiency and higher costs.
What is the impact of e-commerce on India’s logistics industry?
The impact of e-commerce on logistics India is quite evident. Here are the pointers that show the impact of this:
- The e-commerce industry is growing immensely. Therefore, it is also boosting the demand for trusted logistics services.
- It is leading to the development of efficient and sophisticated infrastructure in the country.
- With the growth of the e-commerce sector, it is also generating more jobs.
- This is also encouraging companies to come out with new and effective solutions.
What are the benefits of e-commerce for logistics in India?
You may or may not know, but e-commerce is the sector that has a solid impact on India’s logistics companies. It is also making the process of transporting and getting goods in a cost-effective and efficient manner. When it comes to the benefits of e-commerce logistics India, look at the following for more:
- E-commerce is the industry that has made it easy and possible to get real-time updates. This is also helping logistics companies to have better route planning to ensure on-time deliveries.
- This sector is reducing the requirement for manual procedures, making shipping and receiving goods smooth and error-free. This is needed to improve efficiency and reduce costs.
- E-commerce is also standardizing the transportation and related procedures. This is quite an important aspect for logistics companies for managing operations and tracking performance.
- The growth of the e-commerce sector is making it possible for businesses to connect with their targeted customers directly. This is helpful in offering better customer service and building long-term and trusted relationships.
What are the types of logistics services in India for e-commerce?
E-commerce is a sector that has a great impact on logistics. When it comes to logistics services, there is an extensive range available. Based on the business needs, one can decide from the following:
- Courier: These are the most common types of services that are used in the country. This is specifically ideal for shipping small parcels and documents.
- Freight forwarding: This service is designed to ship goods from one spot to another. Freight forwarding services are used by businesses for shipping larger volumes of goods.
- Warehousing and distribution: These are the services that are used for the storage and distribution of goods. It is used by those who have a wider network to deliver goods.
- Transportation: As the name suggests, e-commerce and other businesses use it to transport goods from one destination to another within and outside the country.
Closing
The growth of e-commerce logistics in India is showing positive results and has already opened new doors for businesses to grab exciting opportunities and expand their reach and horizons. It also offers full control over the supply chain and other areas, including faster delivery, enhanced transparency, and increased efficiency — with BSA Logistics helping businesses streamline these processes and deliver reliable logistics solutions.
