With more than 200 million users‚ India has the third largest number of internet users in the world after China and USA. And yet‚ online retail stands at 8% of organized retail and only 0.5% of overall retail market in India. The e–tailing market is thus poised to grow at a massive 55% p.a. from INR 139 billion in FY13 to INR 504 billion in FY16. A major reason for this rapid growth has been consumer access to products at attractive prices. The e–commerce business model has facilitated cutting out expensive real estate by reaching the consumer directly and thereby being able to offer better prices to consumers.
Thus‚ the underlying foundation of successful e–commerce in India is consumer reach. And that’s where the contribution of focused e–commerce logistics companies kicks in. Historically logistics in the country has primarily focused on transportation between production and consumer centres‚ and warehousing for efficient management of inventory. With the onslaught of e–commerce‚ logistics companies will have to evolve and develop skills to cater to parcelling‚ sorting‚ return management‚ last mile delivery‚ cash management etc. New–age companies that are utilizing technology for more efficient last mile delivery and order fulfillment shall emerge and some shall become multi–million dollar enterprises on the back of the multi–billion dollar e–commerce retailing industry.