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More than 100 Crore e-Commerce Deliveries will be made across the India by 2021: Bonafide Research

The rise of e-Commerce market, new start-ups entering and to logistics market and traditional logistics companies increasing focus on e-Commerce industry have contributed to the growth of e-Commerce Logistics Market.

More than 80% of the population India owns a mobile of phone and 34% of the population has access to internet. A huge mass of this country has moved past using a mobile phone for watching movies, clicking pictures and playing games. Due to the access to internet and social media, people are getting to know about what is new in the market. The living standards have increased. People aren’t reluctant anymore to buy online. With one touch a person has access to unlimited options for shopping in all categories. The person can be anywhere, from the centre of the city to a remote village with proper internet connectivity. Which means that if, an order is placed from an obscure location where the online retailer (e-Tailer) claims to have a reach then, the e-Tailer has to make a timely delivery to that location.

This can only be possible if the e-Tailer has an efficient logistics partner. During the initial phase of the rise of e-Commerce, some start-ups saw the opportunity in connecting the e-Tailer with customer by providing e-Commerce focused solutions. With the adoption of IT, COD collection and remittance, timely pickups, etc. the e-Commerce focused logistics companies established themselves very well in this market. While the big players could afford to establish their in-house logistics division, the smaller e-Tailers had two options, e-Comm. Focused Logistics Service Providers (LSP) or Traditional LSPS. Although many traditional LSPs were a bit late to cater their services to e-Tailers, the big players came up with their logistics solutions for e-Tailers.

According to recently published report of Bonafide Research "India E-Commerce Logistics Market Overview", the e-Commerce Logistics market expected to grow at a CAGR of more than 25% for the next five years. The Tier 2 and Tier 3 cities will emerge as new market due to mobile phone and internet penetration, rising living standards and unavailability of many items in nearby brick and mortar stores. The e-Commerce focused LSPs and in-house logistics arms of bigger e-Tailers will collectively continue to dominate the e-Commerce Logistics Market. More than 100 Crore e-Commerce deliveries are expected to be made by 2021. Currently Tier 1 cities account for more than 30% of the overall e-commerce deliveries. Last mile delivery, COD and Returns are still the major issues for LSPs. Logistics accounts for 5-7% of the overall e-Tailing market.

Major Traditional LSPs operating in this market are: BlueDart, Gati, India Post, FedEx, etc.

Major E-Commerce Focused LSPs operating in this market are: Delhivery, Ecom Express etc.

Captive Logistics Arms: Ekart, GoJavas, Amazon Transportation Services etc.


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