India E-Commerce logistics sector has reported a strong recovery after the first wave of COVID-19 that had hit operations worldwide during the first two quarters of 2020. India's corporate landscape has transformed as a result of the country's rapid e-commerce expansion. The increasing use of smartphones and the Internet in India is driving the growth of the e-commerce sector there, and one of the key drivers is the size of the nation's population. The growing e-commerce market in India is driving growth in the country's logistics sector. On the basis of revenue India Ecommerce logistics market grew at a CAGR of 39% from 2016-2021. After the virus outbreak, an increase in hybrid mode usage resulted in an increase in the number of businesses entering the e-commerce market.
The number of e-commerce consumers increased to more than 40% of India's urban active internet users between June and August 2020. From Tier 1 and Tier 2 cities, nearly half of these are first-time internet shoppers. The two websites that new customers prefer to use for discovery are Amazon and Google. Prior to the viral outbreak, only 22% of India's urban active internet users had engaged in any online purchasing.
With e-Commerce being one of the most in-demand industries during the pandemic, there was a significant increase in the daily volume of orders submitted throughout India. The logistics company delayed the delivery of the items as a result of the additional requests. Due to the nationwide lockdown and the fact that e-commerce typically uses third-party logistics, this market was also experiencing severe labor shortages and supply chain disruptions, which resulted in expensive and delayed deliveries.
With various online retailers expanding their services during COVID-19, eCommerce in India is rapidly developing, especially in comparison to global powerhouses such as China. High internet penetration rates, increased ownership of digital devices, increased income, improved logistical advancements, and the growing presence of global and recognized players have all contributed to the growth of eCommerce in India, bringing variety and availability to local consumers amidst the pandemic.
India Economic Performance
The India is a developing, middle-income nation having nominal GDP, it is the fifth-largest economy in the world, and by purchasing power parity, it is the third-largest (PPP). Prior to the outbreak of the virus, the nation's GDP was expanding at a rapid clip. The country's GDP increased by 7.6% in FY 2017–18, although the virus outbreak caused a setback for the economy, despite that India the Indian economy increased at 9.5% in 2021, after witnessing a GDP growth rate of -7.3% in 2020. While the inflation rate from January through November 2021 was 5.09%.
COVID-19 Impact: The COVID-19 outbreak has fuelled the rise of the e-commerce logistics sector. The E-commerce logistics players took several actions to maintain seamless operations at a difficult period when the supply chain was affected by prolonged lockdowns in a few other countries. There was a significant increase in demand for 3PL and notably E-commerce logistics services as a result of many companies adopting hybrid models to better serve customers and offset losses.
Scope of the Study
Makreo Research has published market research analysis on E-Commerce logistics in India report titled, "India E-commerce Logistics Market Performance and Future Outlook to 2027" published by Makreo Research and Consulting.
The report delves deeply into various parameters such as Market size, segmentation value chain analysis, and industry cause and effect analysis. The study includes market dynamics that provide an understanding of industry opportunities, driving forces, major challenges impeding growth, and an analysis of future opportunities that may help market players capitalise on untapped business potential in the specific geography. India E-Commerce Logistics Segmentation has been carried out on various levels. India e commerce logistics pdf is the detailed assessment of the industry’s past, present and future expected performance.
The report helps reader to gain information on following areas:
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