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Understand How E-Commerce Supply Chain Works - Logistics - Startup Guide By Nayan Bheda

Understand How E-Commerce Supply Chain Works - Logistics - Startup Guide By Nayan Bheda


In the world of e-commerce, reaching customers and delivering products in a timely manner is a crucial challenge. While it may be easier to initiate an e-commerce venture, the real test lies in the ability to effectively and efficiently deliver products to customers. This is where supply chain and logistics come into play.

One company that exemplifies the e-commerce logistics industry is GoJavas. Initially established as a division within Jabong, GoJavas soon realized that logistics was a specialized field that required its own dedicated company. It has now grown to become a leading e-commerce only logistics provider in India, delivering more than 150,000 consignments per day to over 6,000 pin codes across the country.

The growth of e-commerce logistics companies like GoJavas has been staggering. In a short span of time, they have experienced annual growth rates of up to 300%. During peak periods, such as Diwali, GoJavas has successfully managed to deliver up to 360,000 packages in a single day. However, as the e-commerce market continues to expand, the challenge of delivering goods to an increasing number of customers becomes more significant.

Traditionally, courier and logistics companies in India were not well-equipped to serve the e-commerce industry. Their processes and systems were primarily designed for delivering envelopes or documents, rather than handling parcels of various shapes and sizes. Additionally, these companies did not fully understand the concept of cash on delivery, which is a critical feature of many e-commerce transactions.

Realizing the limitations of existing logistics providers, e-commerce companies like Flipkart and Snapdeal started forming their own logistics divisions, referred to as captive e-commerce logistics companies. This strategy allowed these companies to have more control over the delivery process and ensure that their customers received a seamless experience.

In addition to the existing courier and captive e-commerce logistics companies, a new breed of independent e-commerce logistics providers emerged. These companies, such as Delhivery, Ecom Express, and Express Bees, were specifically created to cater to the needs of the e-commerce industry. They focused exclusively on serving e-commerce businesses and understood the unique requirements of the sector.

Today, the e-commerce logistics market in India is dominated by a few major players. Companies like Blue Dart, FedEx, and AeroMax control nearly half of the market share. However, independent e-commerce logistics providers have managed to capture a significant portion of the market by offering tailored services to e-commerce companies.

It is important to note that the e-commerce logistics industry is constantly evolving, and new players are entering the market. Traditional logistics companies are adapting their strategies to cater to e-commerce requirements, and the dynamics of the market are continuously changing. Despite the challenges, there is still immense potential for growth in the e-commerce logistics sector.


Keywords:

  • E-commerce supply chain
  • Logistics
  • GoJavas
  • E-commerce logistics companies
  • Captive e-commerce logistics companies
  • Independent e-commerce logistics providers
  • Market share
  • Traditional logistics companies

FAQ:

  • What is e-commerce supply chain?
  • How have logistics companies adapted to the e-commerce industry?
  • What are the major players in the e-commerce logistics market in India?
  • What is the difference between captive e-commerce logistics companies and independent e-commerce logistics providers?
  • Is there potential for growth in the e-commerce logistics sector?