April 12, 2023
2 mins read

India’s e-commerce logistics industry is booming

Despite intensifying competition threats, Delhivery remains the largest player in the e-logistics space by a comfortable margin…reports Asian Lite News

India’s e-commerce logistics industry saw total shipments reaching to 4 billion in FY23, riding on new categories, direct-to-consumer (D2C) brands along with continued growth in smaller cities, a report showed on Tuesday.

India’s e-commerce logistics space is on track to comfortably exceed 10 billion shipments by FY28 at a minimum compound annual growth rate (CAGR) of 20 per cent, according to the latest report by Redseer Strategy Consultants.

Despite intensifying competition threats, Delhivery remains the largest player in the e-logistics space by a comfortable margin.

“Despite funding headwinds in e-commerce/internet sectors, there are multiple pockets of high growth and high yield opportunities available for e-logistics players, be in D2C or large goods or non-ecommerce segments,” said Mrigank Gutgutia, Partner, Redseer Strategy Consultants.

D2C brands across channels are expected to grow overall GMV at 35 per cent in next few years, with brand.com accounting for a significant share of this growth.

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 said.

“Players who build robust capabilities and offerings to serve this demand effectively will fundamentally be more resilient in these challenging times and will be better positioned for long term market share and yield leadership,” Gutgutia noted.

Meanwhile, the Confederation of All India Traders (CAIT) has demanded an empowered Regulatory Authority to monitor and regulate the e-commerce trade in the country.

The CAIT has strongly pitched for six basic fundamentals needed for e-commerce policy and the rules under the Consumer Protection Act.

In a communication sent to Union Commerce & Consumer Affairs Minister Piyush Goyal, the CAIT said six fundamentals are necessary for a robust growth of e-commerce which include transparent operations of e-commerce platforms; easy accessibility and adequate grievance redressal by e-commerce entities; non- discriminatory access of marketplace platforms to all stakeholders of the value-chain; avoidance of conflict of interest between marketplace platforms; sellers and various service providers on the platform and formation of an empowered Regulatory Authority to monitor and regulate the e-commerce trade in India.

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