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E-Commerce Logistics Industry to Surpass 10 Billion Shipments by FY28
Best Practices for the Logistics Companies in India
May 4, 2023
India's e-commerce logistics industry has witnessed remarkable growth in recent years, with the total shipments reaching 4 billion in FY23.
This has happened because of the emergence of new categories, the rise of direct-to-consumer (D2C) brands, and the continued growth in smaller cities. According to the latest report by Redseer Strategy Consultants, the industry is expected to comfortably exceed 10 billion shipments by FY28, with a minimum compound annual growth rate (CAGR) of 20%.
Despite the intensifying competition threats, Delhivery remains the largest player in the e-logistics space by a comfortable margin. However, other reliable logistics companies are also performing well in this trend. According to Mrigank Gutgutia, Partner at Redseer Strategy Consultants, there are multiple pockets of high growth and high yield opportunities available for e-logistics players, whether in D2C or large goods or non-ecommerce segments.
D2C brands across channels are expected to grow overall GMV at 35% in the next few years, with brand.com accounting for a significant share of this growth. Furthermore, a total of $33 billion of GMV is expected to be generated from D2C brands across all channels by CY27. Logistics players with relevant and customised offerings for D2C brands are well-positioned to capture market share in this high-growth segment, as well as have a stronger yield profile going forward.
The report highlights the need for players to build robust capabilities and offerings to serve this demand effectively. Those who do so will fundamentally be more resilient in these challenging times and better positioned for long-term market share and yield leadership.
E-commerce logistics companies that can provide reliable, cost-effective, and efficient services are critical to the success of the e-commerce industry in India. This is especially true for D2C brands that rely heavily on their logistics partners to ensure timely deliveries and maintain customer satisfaction. Logistics companies that can offer customized solutions tailored to the specific needs of D2C brands will have a competitive edge in this high-growth market.
The rise of D2C brands is also driving the need for better last-mile delivery solutions. As more and more consumers shop online, the demand for fast and reliable deliveries is increasing. This has led to the emergence of new last-mile delivery models, such as hyperlocal delivery, that can fulfil orders quickly and efficiently. Logistics companies that can offer these solutions will be well-positioned to capture market share in this growing segment.
The growth of the e-commerce logistics industry is also creating job opportunities across the country. As logistics companies expand their operations, they will need to hire more people to manage their warehouses, delivery operations, and customer support. This will not only boost employment but also contribute to the overall growth of the economy.
In conclusion, the e-commerce logistics industry in India has seen remarkable growth in recent years, and this trend is expected to continue. D2C brands are a significant driver of this growth, and logistics companies that can provide customized solutions for these brands will have a competitive edge. The emergence of new last-mile delivery models is also creating new opportunities for logistics players. Overall, the e-commerce logistics industry in India is poised for significant growth, and this presents exciting opportunities for both businesses and job seekers.
E-commerce logistics companies that can provide reliable, cost-effective, and efficient services are critical to the success of the e-commerce industry in India. This is especially true for D2C brands that rely heavily on their logistics partners to ensure timely deliveries and maintain customer satisfaction. Logistics companies that can offer customised solutions tailored to the specific needs of D2C brands will have a competitive edge in this high-growth market.
The rise of D2C brands is also driving the need for better last-mile delivery solutions. As more and more consumers shop online, the demand for fast and reliable deliveries is increasing. This has led to the emergence of new last-mile delivery models, such as hyperlocal delivery, that can fulfil orders quickly and efficiently. Logistics companies that can offer these solutions will be well-positioned to capture market share in this growing segment.
The growth of the e-commerce logistics industry is also creating job opportunities across the country. As logistics companies expand their operations, they will need to hire more people to manage their warehouses, delivery operations, and customer support. This will not only boost employment but also contribute to the overall growth of the economy.
In conclusion, the e-commerce logistics industry in India has seen remarkable growth in recent years, and this trend is expected to continue. D2C brands are a significant driver of this growth, and logistics companies that can provide customised solutions for these brands will have a competitive edge. The emergence of new last-mile delivery models is also creating new opportunities for logistics players. Overall, the e-commerce logistics industry in India is poised for significant growth, and this presents exciting opportunities for both businesses and job seekers.
Cosmo Shipping is one of the best e-commerce logistics companies in India that can provide reliable, cost-effective, and efficient services that are essential to the success of the e-commerce industry in India. With D2C brands relying heavily on their logistics partners to ensure timely deliveries and maintain customer satisfaction, Cosmo offers tailor-made solutions crafted to the specific needs of these D2C brands. This for sure, gives these brands a competitive edge in this high-growth market.
