Ecommerce companies competing for the first place of India’s $13 million business are concerned about the heavy costs in shipment through air and they some how want to reduce the expenditure by improving on road and rail facilities.
Flipkart, India’s largest domestic e-tailer , and the main competitor for global companies like Amazon . com and ebay Inc are generally widening their particular supplier networks by developing their logistics infrastructure in order to maintain their first place in this race. They are even shrinking delivery times to nine hours.
More than 200 million internet users definitely add more potential to Indian ecommerce industry. Indian ecommerce market is expected to reach $6 billion in 2015. E commerce industry in other emerging markets are growing than India, and the slow pace may be due to various reasons like COD, cash burn rate, poor supply chains, poor online security, tax structure and logistics.
Complex geography, different terrains and lack of knowledge of the logistics companies are creating obstacles in the further advancement of these e commerce companies. There are few companies who have even started regional warehouses and one company has tied up with Indian Postal Service to reach far off places.
Flipkart, Jabong, Amazon have even started their own shipping arms. Raising up a delivery network for e-commerce business is very complicated in India where millions of customers are across more than 100,000 post codes. Big logistics firms like Blue Dart, Aramex etc have already started in ecommerce and are regularly used by e commerce companies.
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