We are living in the age of e-commerce, and Indian customers are demanding a greater selection of products at low costs and speedy delivery. This is possible only when a robust supply chain supports digital commerce.
Today, e-commerce has become an integral part of the global economy, accounting for a significant share of retail sales worldwide. Its impact extends beyond retail, influencing sectors such as logistics, marketing, finance, and manufacturing.
In India, the e-commerce market is expected to grow from USD 59 billion in 2022 to USD 300 billion by 2030 at a CAGR of 23%. A significant driver of this growth is expected to be the advancements in technology and the ever-evolving nature of consumer preferences, ecommerce is expected to further evolve, shaping the future of commerce in many ways.
‘Mass’ consumers are going to drive the growth indicating that a larger portion of India’s population will increasingly turn to online shopping for their needs. This will be potentially due to factors like affordability, ease of access, and a wider product range available online. The ensuing growth will not only benefit e-commerce platforms but also associated industries such as logistics, digital payments, and technology.
Logistics is the backbone of e-commerce. It ensures that products efficiently move from manufacturers or suppliers to warehouses, then to customers. With the surge in online transactions, logistics companies have had to adapt quickly to meet rising demands. The convenience of online shopping comes with increased expectations for faster deliveries, precise tracking, and lower shipping costs. This has led to significant changes in logistics operations, creating both opportunities and challenges for the industry.
In India, logistics industry is largely driven by e-commerce and is now a major contributor to the economy. It accounts for approximately 14% of the country’s GDP and employing over 22 million people.
The role of e-commerce platforms will assume a critical proportion to generate employment in the economy. E-commerce is poised to generate approximately 10 million jobs by 2027 in the logistics sector in various roles including transportation, warehousing, and value-added services like packaging and inventory management.
One of the most critical aspects of logistics in e-commerce is last-mile delivery, the final step in the delivery process where goods are transported from a local distribution centre to the customer’s doorstep. Last-mile delivery poses unique challenges, as it is often the most expensive and inefficient part of the logistics chain, accounting for up to 28% of the total delivery cost.
The rapid expansion of e-commerce has prompted logistics companies to adopt cutting-edge technologies to keep up with demand. Innovations in artificial intelligence (AI), robotics, and the Internet of Things (IoT) are transforming logistics operations, making them more efficient, scalable, and responsive to consumer needs.
As e-commerce continues to grow, the logistics industry will need to evolve to keep pace with rising demand and changing consumer expectations.
E-commerce has significantly reshaped modern logistics, altering the methods used for storing, managing, and delivering products. As online shopping continues to grow, the logistics industry must evolve to meet the challenges of last-mile delivery, sustainability, and customer expectations for speed and convenience. Technological advancements, such as AI, automation, and blockchain, will play a crucial role in shaping the future of e-commerce logistics. By embracing these innovations, businesses can streamline their supply chains, improve customer satisfaction, and maintain a competitive edge in the fast-paced world of ecommerce.
References:
https://redseer.com/newsletters/outlook–logistics–in–india–by–2030/
https://www.linkedin.com/pulse/e–commerce–india–distribution–channels–way–forwardteamlease–dnilc?trk=public_post_main–feed–card_feed–articlecontent#:~:text=The%20Indian%20e%2Dcommerce%20industry,within%20the%20next%20s even%20years.&text=Traditional%20Retail%3A%20This%20includes%20small,pop%20stores %2C%20and%20local%20markets.
https://www.linkedin.com/pulse/how–e–commerce–growth–reshaping–logistics–landscapeanand–nair–gp1df https://stories.flipkart.com/ecommerce–supply–chain–trends–flipkart/
https://www.financialexpress.com/business/industry–building–a–new–bharat–the–role–ofadvanced–logistics–and–e–commerce–on–national–logistics–day–2024–3538121/
https://www.hindustantimes.com/opinion/a–logistics–impetus–for–jobs–led–by–ecommerce–