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Third party Logistics and E-Commerce

Update On :09 July 2016

 Third party Logistics and E-Commerce

Third-party logistics, or 3PL, is emerging as a key driver of growth for ecommerce players as they seek to develop core competencies as retailers while outsourcing their logistical requirements.

While big players such as Flipkart have diversified into logistics with Ekart and partnerships with MapmyIndia and Blackbuck, Snapdeal has acquired Gojavas and Amazon runs with support from BASIX. Breaking through the so called "Hindu rate of growth" for ecommerce, as mentioned by Flipkart director of projects and real estate, Nagesh Rao, will require increased investment in better warehousing and first- and last-mile connectivity.

"The biggest pain point is that infrastructure has totally broken the country in terms of warehousing," said Rao, speaking on the sidelines of the CII-CBRE conference on industry and logistics. "The pace at which ecommerce has grown, infrastructure has not grown in that fashion.

Many of us started with ecommerce but due to certain reasons, today we are equally big in warehousing and logistics. The inclusion of COD, return shipments demanded that we overnight change our business, and we not only had to focus on being a platform for ecommerce or a good retailer, but at the end we also had to be a great warehousing and logistics firm."

News Source From : http://retail.economictimes.indiatimes.com/news/e-commerce/e-tailing/third-party-logistics-emerging-as-driver-of-e-commerce-growth/53125030

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