Page 28 - Indian Transport & Logistics News July - August 2024 Issue for Website

Guest Column
Vikash Khatri

E-commerce logistics’

challenge with

quick commerce

With quick commerce players expanding to electronic
items, mobiles and white goods, established e-commerce
companies are facing stiff competition while in search of
profitability and sustainable business operations.

Vikash Khatri

he rapid emergence of quick very strong reach across the country
commerce is creating stiff through 3PL service providers.
competition for e-commerce Quick commerce is largely a
Tplayers. It will also have a phenomenon of metro and Tier 1 cities
significant impact on e-commerce and is expected to remain up to tier
logistics companies. As per estimates 2 cities only. We expect e-commerce
quick commerce volumes have grown to keep its dominance in tier 2 and
at 45 – 50 percent year on year against smaller markets against quick
17-18 percent growth of e-commerce commerce. The operating model of
volume. This growth rate may further quick commerce revolves around
improve with the addition of new inventory-carrying dark stores. The
categories. In spite of limited reach viability of such an inventory-led model
to about 25 cities, quick commerce depends on order volume and drop
volumes have already crossed 65 density, which remain very high in
million shipments per month. These urban markets. While in tier 3 or tier 4
volumes are more than 15 percent cities, maintaining a complete product
of e-commerce volume, which has range with lower order volumes, such

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July - August 2024 www.itln.in