The Indian eCommerce market has seen exponential growth, especially after the pandemic hit us in 2020. According to an IBEF report, the Indian eCommerce market is expected to reach US$ 188 billion by 2025 and US$ 350 billion by 2030. As the logistics systems facilitate the movement of goods in a brand’s supply chain, the logistics companies have also grown at a rapid pace. Reports suggest that the Indian logistics industry is estimated to grow to 380 billion dollars by 2025.
With the eCommerce industry growing at a tremendous pace, the underlying logistics behind delivering orders to customers is becoming more complicated. There have been numerous innovations in the eCommerce logistical landscape along with advancement in technological support to meet high demands. Today, online buyers can track their consignment from the date of dispatch until its delivery.
Before the eCommerce industry boomed, retailers sourced products from manufacturers or distributors. However, we now have myriad online shopping stores. Therefore, the intermediaries have ceased to exist. What this means is that deals are now directly done between the supplier and the end-user. Agents, distributors, dealers, and retailers have no role in this direct selling process now.
As businesses are no longer dependent on these intermediaries, eCommerce shipping has become an indispensable part of supply chain management. It has evolved into a highly specialized service.
A report by the World Economic Forum states:
“The logistics environment and its interaction with e‑commerce are complex, with different types of providers and services, competing, and cooperating.”
Logistics includes several processes such as inventory management, warehousing, packaging, labeling, billing, shipping, payment collection, return, and exchange. Besides, logistics also requires accurate knowledge about territories, regulations regarding the movement of goods, and transport laws. The ultimate goal of a logistics unit is to deliver packages much quicker and more carefully.
In this article, we will get into the details of how eCommerce logistics works, the importance of modern logistics, its benefits, and the latest trends.
What is eCommerce logistics?
Ecommerce logistics revolves around the processes involved in storing and shipping inventory for an online store or marketplace. It includes inventory management and the picking, packing, and shipping of online orders.
It begins with moving inventory from the manufacturer and ends when the consignment reaches the customer’s destination. Fulfillment is one of the most important steps in eCommerce logistics. It includes:
- Inventory management
- Warehousing & storage
- Order fulfillment (picking, packing, and shipping orders)
- The fulfillment of orders placed online by a customer can either be undertaken by the retailer (“in‑house”) or by a third‑party logistics company (3PL) (“out‑sourced”).
Businesses must make sure that they have adequate stock levels in a distribution center close to a customer’s location. If they outsource fulfillment, their 3PL must be competent and capable of fulfilling orders at pace.
A lapse in execution within your supply chain can ultimately ruin the customer experience.
How Does eCommerce Logistics Companies Work?
eCommerce logistics also referred to e-logistics, enables online brands to deliver orders to the customers’ doorstep. Once an online order is placed by a customer, logistics companies in India handle the order fulfilment process that covers everything from packing, shipping, and deliveries to returns and refunds (if applicable).
Key Challenge Faced by eCommerce Sellers and the Solution
Amazon’s one-day/next-day delivery standards have soared up customers’ expectations as nowadays, customers expect eCommerce sellers to deliver their orders in the minimum duration. To keep up with the rising customer demands, D2C brands and online marketplace sellers started investing in third-party warehouses and distribution centres. Further, to keep up with the market competition, the logistics partners must provide logistics services through a smart shipping platform. They must use technologies like AI, machine learning, augmented reality, advanced robotics, and automation processes to prepare their platforms for efficient shipment handling. Presently, many logistics companies in India have incorporated the latest tech into their platform to meet online sellers’ requirements more efficiently.
Top eCommerce Logistics Companies in India
There are several companies in India offering courier services for eCommerce logistics needs. A business requires sustainable solutions and a reliable logistics partner to handle the supply chain proficiently. Irrespective of the size of your eCommerce business, you will need a reliable best logistic company in india to handle eCommerce delivery. We’ve jotted down the list of top 10 logistics companies in India to give you a fair idea of the best courier options you’ve got out there.
Blue Dart
Headquartered in Mumbai, Blue Dart has a massive delivery network across India, as well as in the international market under the name of DHL. The company is counted among the prominent courier partners for offering low-cost deliveries, high customer satisfaction, and fast delivery. The courier company has an aviation hub in Chennai, air support of 6 Boeing 757 freighters, and 11,122 vehicles for ground support. With a domestic hub in metropolitans and other major cities like Mumbai, Delhi, Kolkata, Hyderabad, Ahmedabad, Indore, Pune, Kochi, and more, Blue Dart deserves to be on the top of our list of top logistics companies in the country. Founded: 1983 Pin Code Reach: 22,300+ Additional Services: COD services, express delivery, scheduled delivery, weather-resistance packaging, computerized proof-of-delivery
Delhivery
This Gurugram-based courier partner is among the most popular names for eCommerce logistics in India. The service partner enables customers to operate reliable and flexible supply chains at reasonable costs. With a base of 23000+ active customers across eCommerce platforms, marketplaces, D2C, e-tailers, and SMEs across different verticals, Delhivery has become one of the most reliable names for online shipping needs. Founded: 2011 Pin Code Reach: 17,000+ Networking: 21 automated sort centres, 122 gateways, 93 fulfilment centres, 2521 direct delivery centres, and a team of over 86000 people
DTDC
The Bangalore-headquartered courier delivery service company is also known as DTDC Express Limited. With 7 zonal offices, 20 Regional Offices, and 430+ operating facilities spread across India, DTDC has transformed Indian logistics in over 3 decades. With a significant footprint across 240 international locations including the USA, UK, Canada, Australia, Hong Kong, China, UAE, and all Asian countries, DTDC has become a significant name for shipping across international locations. Founded: 1990 Pin Code Reach: 10,500+ Key Services: Domestic cargo services for large packages, express delivery services for small packages, and intracity drop-and-pick services in cities.
Also Read: DTDC Courier Charges for eCommerce Shipping
Ekart Logistics
The Bangalore-based courier partner is also known as Ekart courier. Starting as Flipkart’s in-house supply chain support, the delivery partner has grown to become a preferred shipping partner for several businesses. Enabling same-day delivery in 13 cities and next-day delivery in 50 cities, the logistics partner promotes automated shipping, smooth reverse shipments, and return management. Founded: 2009 Pin Code Reach: 3800+ Added Services: Same-day delivery, Next-day delivery, COD Services
Shadowfax
Bengaluru-based Shadowfax specializes in hyperlocal and eCommerce delivery services with 100K active users at the moment. Serving across 900 cities, the logistics company delivers more than 20 million orders a month. Aiming to empower a million micro-entrepreneurs through innovation and technology, Shadowfax has carved its niche in the industry in a small duration. From delivering under 30 minutes to quick API integration, live tracking, and tech-enabled security to end-to-end fulfilment, the logistics company has become a prominent name in the industry. Founded: 2015 Pin Code Reach: 7600+ Key Services: Hyperlocal, eCommerce, Quick Commerce.
XpressBees
Headquartered in Pune, XpressBees delivers happiness by simplifying the shipping journey of B2B and B2C companies. Serving as a 3PL partner, the company also offers cross-border logistics services through air and surface. Handling 3 million+ shipments a day with a team of seasoned professionals, the courier company is counted among the top logistics companies in India. Founded: 2015 Delivery Reach: 2500+ Cities Networking: 3000+ offices, 52+ cargo airports, 100+ hubs, 10 Lacs sqft+ warehouse capacity, 35,000+ field executives
Ecom Express
The Gurgaon located logistics company’s business model is based on enhancing delivery service capability and sustainability of eCommerce sellers. Offering automation-powered solutions, key products of Ecom Express include Ecom Express Services (EXS), Ecom Fulfilment Services (EFS) and Ecom Digital Services (EDS). Founded: 2012 Pin Code Reach: 17,000+ Networking: 2650+ towns, 2930+ facility centres, 1008000 sqft. fulfilment centre space
India Post
The backbone of the country’s communication for over a century, India Post is headquartered in New Delhi with more than 1,55,000 post offices. The government operated postal service in India has the widest postal network in the world. Initially started to cater to the needs of individual customers, the logistics service provider has also started to serve the eCommerce sector. Founded: 1854 Pin Code Reach: 19100+
DHL
One of the oldest logistics companies in the world, DHL was founded in the US and is currently headquartered in Germany. The company expanded its delivery services across the world by the late 1970s. The logistics company offers international parcel delivery, international express, road, air and ocean freight, and end-to-end supply chain management. Founded: 1969 Delivery Reach: 220+ Countries & Territories
NimbusPost
The tech-enabled shipping aggregator is headquartered in Gurugram with an automated shipping platform. Backed with advanced technologies like AI, ML, automation, etc. the logistics partner caters to the domestic and international shipping needs of 60,000+ sellers. The seller-centric logistics company has brought together 27+ courier partners on a single platform to enable eCommerce sellers and D2C brands to pick the best courier option for each shipment. Founded: 2018 Pin Code Reach: 29,000+ Key Features & Benefits: Courier recommendation engine, shipping rate calculator, Amazon integration, COD cloud-calling for order confirmation, one-day COD remittance, automated fraud detection, 24×7 customer support, 30-minute call-back feature, etc.
The evolution of eCommerce logistics
Ecommerce logistics evolved in various phrases over the years. Given below is a very broad timeline:
1970: different retail stores were replaced and direct deliveries were carried out by suppliers and wholesalers
1980: retailers decided to streamline their store delivery through distribution centers controlled by them
1990: retailers started shipping nonfood products, global sourcing as practice began picking up, allowing different retailers to set up their import and delivery centers and exchange goods
The 2000s: the concept of e-commerce began developing, retailers started developing their e-fulfillment distribution network to meet people’s demand all across the world
The modern logistics chain
As you can see about 30-40 years ago, suppliers and retailers had a relatively straight line between them. However, with the advent of eCommerce and its growth into a worldwide channel, logistics has become much more complex. There are now several working components to ensure products reach customers.
1) Suppliers
Suppliers have inventories ready to ship to a destination. They manufacture products and ship them to fulfillment or distribution centers once buyers place their purchase orders.
2) Fulfillment centers
Fulfillment centers are large warehouses that store all the inventory products close to the end consumer. As soon as a buyer places an order, it is picked, packed, and shipped here to ensure rapid delivery.
3) Distribution hubs
Large eCommerce retailers keep their products in multiple locations throughout the world for direct-to-consumer (DTC) and B2B orders. Instead of managing your inventory from one location, which can lead to more delayed delivery times and expensive shipping charges, dividing an inventory allows for faster shipping of DTC orders.
You can choose to use a separate facility for B2B orders, which require different fulfillment processes in comparison to DTC orders. The differences involve packaging requirements, warehousing needs, and ultimate shipping destinations and customer types.
4) Sorting facilities
Facilities that sort items are usually for large-scale eCommerce shops that move bulk quantities of many SKUs.
5) Carriers
Shipping carriers manage the transportation of products to their end destination. Some of the best carriers are FedEx, UPS, Blue Dart, and DHL and generally transport packages via truck and plane.
Advantages and benefits of modern eCommerce logistics
If you’re starting a new eCommerce business and looking for a shipping platform that can connect you to multiple online channels and courier services, choosing a shipping and logistics aggregator like Nimbus Post would be your best bet. We are trusted by over 5000+ global sellers and help eCommerce business owners to focus on their entrepreneurial strategies instead of worrying over shipping and logistics. Here are some of its advantages:
Courier Recommendation Engine
Most eCommerce companies have a tough time trying to pick the right courier partner. Important metrics such as delivery time, freight rate, and customer satisfaction depend on the courier partner you choose. To help you make this decision with accuracy, precision, and ease, Nimbus Post utilizes a machine-learning-based tool that recommends the best courier partner for each of your shipments. It takes into account return rates, delivery time, and cost-effectiveness for hassle-free shipping.
Post Shipping Experience
Nurturing a healthy relationship with your customers is essential for your business to evolve and grow. With Nimbus Post, you can provide your buyers with a delightful post-purchase experience. You can update your buyers with detailed tracking information, establishing a trusted bond with them where they can rely on your store for future purchases. Nimbus Post can also help you –
- Send customized tracking pages to customer
- Add your brand’s logo and support details to the tracking page
- Share best selling product banners with your customers
NDR Dashboard
Return orders can become a nightmarish problem for eCommerce owners if they don’t optimize their logistics with care. Nimbus Post’s NDR Management tool manages undelivered shipments with ease. You can now keep a watchful eye on undelivered shipments and also know the reason behind them. Here are some features of our NDR panel:
- Reduces the chances of a return shipment.
- Reach out to your buyers in real-time
- Immediate action by courier agent
- Record undelivered order feedback via automated IVR & SMS
With such an automated workflow you can take action for undelivered orders in real-time, and reduce RTO by 25%.
Take Your Pick
Are you ready to make your eCommerce logistics experience better and more cost-effective? Hire a shipping partner that can address your overall shipping requirements. While single courier partners can be a good choice for your business if you need to ship orders in limited locations, however, they can limit your reach and lead to other restrictions as well. Picking a shipping aggregator like NimbusPost will facilitate you with multiple courier choices to serve customers across any location in the country. Plus, an aggregator model of a trusted logistics company lets you leverage several tech-based platform benefits as well.
Nimbus Post provides the best eCommerce shipping solutions with the lowest shipping rates, widest reach, and professional customer support.
