October 5, 2023
The third-party logistics (3PL) sector is expected to lead to a 23% reduction in the cost per shipment
Currently, the Indian e-commerce industry stands at US$ 59 billion
Meesho emerged as the leading contributor to e-commerce 3PL shipments in India
E-tailing shipments during 2022 were 6-8 times lower compared to the current year’s numbers
The Indian E-commerce industry is expected to witness a fivefold growth to reach US$ 300 billion by 2030, according to a report from Redseer. Additionally, the report claims a substantial increase in the volume of shipments handled by third-party logistics providers, potentially reaching 17 billion within the next seven years.
According to the findings, this expansion in the third-party logistics (3PL) sector is expected to lead to a 23% reduction in the cost per shipment. This cost is projected to decrease from INR 60 in 2023 to INR 47 by 2030.
The report further highlights that E-commerce, often referred to as e-tailing, in India is poised for remarkable growth, with expectations that it will soar from US$ 59 billion to US$ 300 billion between 2022 and 2030. The volume of eTailing shipments in India, handled by 3PL providers, is estimated to range from 13 to 17 billion by 2030, marking a substantial increase compared to 2022 levels, which were 6-8 times lower.
Meesho emerged as the leading contributor to e-commerce 3PL shipments in India, with Flipkart, Ajio, and Amazon ranking among the top four players based on their average share of e-commerce 3PL shipments during January- August 2023.
Experts emphasized the critical role of 3PL in the e-commerce ecosystem, saying that 3PL has become an indispensable facilitator for a wide range of businesses, including mass-focused horizontals, large verticals, and Direct-to-Consumer (D2C) brands. Collaborating with 3PL providers for logistics needs enables businesses to accelerate market entry, drive growth, and effectively address the challenges associated with fluctuating demand, thereby optimizing their investments in logistics per shipped unit.
Source: Economic Times