Indian e-logistics market crosses 1 bn shipments in FY23: Redseer

Third-party players and in-house logistics had almost an equal share of this market

April 12, 2023

The e-commerce logistics opportunity is set to grow at a Compound Annual Growth Rate (CAGR) of over 20%

Direct-to-consumer (D2C) brands have emerged as a strong growth segment within e-commerce

These brands are expected to generate a total Gross Merchandise Value (GMV) of US$ 33 billion across all channels by 2027

Over 10 billion parcels are expected to be shipped by FY28

The Indian e-logistics market surpassed 1 billion shipments in FY23, excluding hyperlocal shipments (including forward and reverse logistics), according to a report from Redseer Strategy Consultants. Third-party players and in-house logistics had almost an equal share in this market.

The industry faced increased competition from smaller players, challenging yields. Nevertheless, the e-commerce logistics opportunity is set to grow at a CAGR of over 20%, exceeding 10 billion parcels by FY28, driven by steady e-commerce growth. 

According to the report, D2C brands, especially those online-first new-age brands from Indian players, have emerged as a strong growth segment within e-commerce. These brands are expected to generate a total GMV of US$ 33 billion across all channels by 2027.

Experts said that despite funding challenges in the e-commerce/internet sectors, e-logistics players can still find high growth and high yield opportunities in D2C, large goods, and non-e-commerce segments. Players who build robust capabilities and offerings to serve this demand effectively will be better positioned for long-term market share and yield leadership in these challenging times.

Source: Economic Times

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