E-Commerce and Quick Commerce in India
Logistics: The Last Mile
Getting parcels to millions of pin codes needs warehouses, delivery firms and riders, and logistics cost is the largest challenge.
Delivery is the hard part of e-commerce.
Warehouses
Fulfilment centres store goods near customers to speed delivery.
Delivery firms
Ekart, Delhivery, Amazon’s own network and others carry parcels.
Last mile
The final delivery to the door is costly, especially in low-density areas.
Returns
Reverse logistics, or collecting returned goods, adds costs, especially in fashion.
A returned dress
A customer sends back clothing, which the platform must collect, check and restock.
Ignoring returns when judging profit
They can eat much of the margin.
Key takeaways
- Warehouses cut delivery time.
- Last mile is expensive.
- Delivery firms are key.
- Returns add cost.
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