India’s E-commerce logistics market growing faster than industry, to grow at 16% CAGR by FY30: JP Morgan
(source : ANI) ( Photo Credit : ani)
India’s e-commerce logistics sector is booming, and it’s growing faster than the overall industry. According to a new JP Morgan report, the business-to-consumer (B2C) e-commerce logistics market in India could see a strong compound annual growth rate (CAGR) of 16 percent through FY30. That’s a big jump, fueled by more shoppers in tier-2 and smaller cities, plus smart tech making deliveries smoother.
What’s driving this e-commerce logistics growth? More people in places beyond big metros like Delhi and Mumbai are shopping online, thanks to better internet and affordable smartphones. But the wider logistics industry isn’t keeping up—it’s struggling with not enough investments to match the demand surge. Low entry barriers mean anyone can start, but scaling up is tough due to high costs and competition.
Still, many e-commerce logistics players aren’t turning profits yet. The report warns that industry consolidation—where smaller companies merge or shut down—might speed up if online shopping doesn’t pick up even more. Factors like slower consumer spending and e-commerce giants handling their own deliveries are putting pressure on prices, making it harder for third-party providers.
A major boost comes from tier-2 and smaller cities, where demand is exploding. However, challenges like bad roads and tricky last-mile deliveries make it tough to reach customers quickly. To tackle this, companies are turning to technology solutions. Think advanced tracking apps, real-time chat tools for updates, and AI-powered route optimization that cuts down travel time and fuel costs.
Third-party logistics (3PL) firms are leading the charge with artificial intelligence (AI) and machine learning (ML). By crunching data from shipments nationwide—like geocodes and addresses—they’re smartening up routes, fixing location errors, speeding up deliveries, and slashing expenses. This tech edge is key to thriving in India’s fast-paced e-commerce logistics market.
Shoppers today want it all, and fast. Same-day or next-day delivery is now a must for top B2C e-commerce platforms, and many customers happily pay extra for that speed. Big Indian business groups are jumping in too, with omni-channel retail setups and local warehouses that bring products closer to buyers. This not only shortens delivery times but also boosts the whole shopping experience.
As e-commerce keeps reshaping India’s retail scene, these innovations in logistics could make online shopping even more reliable and exciting for everyone.
Stay informed on all the latest news, real-time breaking news updates, and follow all the important headlines in world News on Latest NewsX. Follow us on social media Facebook, Twitter(X), Gettr and subscribe our Youtube Channel.
