Page 7 - ITLN March - April 2022 issue

s per the Indian E-commerce Logistics
Industry Outlook 2025 by Ken Research,
the e-commerce logistics industry of
AIndia is expected to reach ₹492.8 billion
by FY25 with a CAGR of 23.6 percent in terms of
revenue during the forecast period of FY20-FY25.
Despite being at the cusp of a great
e-commerce boom, India struggles with having
very low internet penetration (45 percent according
to March 2022 Statista report) among its huge
population on the one hand and on the other, the
country has a huge digitally active population that
is yet not making transactions online. This divide
clearly shows the gap between the potential and
delivery of e-commerce in India.
To galvanise the potential that e-commerce
holds for India would also require a faster, deeper
and leaner infrastructure to move these goods
from the factories to the doorstep. ITLN delves into
the complex structures shapeshifting the larger
Indian e-commerce story and lays threadbare
some of its faultlines.

What is the future of e-commerce logistics?
Mukesh Kumar, engagement manager at RedSeer
Management Consulting identifies at least four
different trends in the current e-commerce
logistics which includes the emergence of non-
Flipkart and Amazon e-commerce marketplaces,
regional fulfilment centres, logistics aggregators
and resource utilisation.
"Three years back, the majority of e-commerce
shipments were delivered by Flipkart’s Ekart and
Amazon’s ATS (Amazon Transportation Service).
However, in the last three years, non-Flipkart and
Amazon businesses grew exponentially along with
many other D2C brands. Thus the share of third-
party logistics in the total supply chain increased.
Second is the increasing trend of getting regional
fulfilment centres to ensure faster delivery of
products. Third is the emergence of e-commerce
logistics aggregators like Shiprocket, Pickrr,
Nimbus Post and Shipyaari to help the smaller
direct to consumer (D2C) brands and SMEs, who
have lower e-commerce volumes, to deliver their
goods. Four is the utilisation of resources. Almost
everyone has been burning money over the last
couple of years. But now, almost all of them are
looking to utilise their existing facility more and
more and hence, trying to cater to a wider spectrum
of services," he said.

Cost, manpower key for express logistics
players
Harshal Bhoi, chief business officer, XpressBees,
predicts that there's going to be a huge cost

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www.itln.in March - April 2022