The festive season is a gift to the ecommerce players .They are planning a lot to the attention of the customers in to their from a product purchase to the product delivery. They are increasing their business services in many ways .
With e-commerce set to penetrate further in Tier-II and -III towns and cities thanks to the ongoing expansion of 3G mobile, manpower and logistics needs of online marketplaces have increased.
â€œWe donâ€™t have a logistics arm and, therefore, use third-party logistics for shipping our products,â€ Vishal Sharma, Vice-President, ShopClues.com, told BusinessLine.
ShopClues has outsourced its requirements to nearly 30 logistic companies with tie-ups at local levels to reach out to its online customers. In fact, it is focusing more on Tier-II and -III destinations as transaction traffic is set to increase from there. â€œFrom a 20-25 per cent month-on-month increase, we expect a 70-80 per cent increase in growth by Diwali this year,â€ he added.
Sharma said these local logistics partners decide how many delivery boys and other infrastructure they would need for last-mile delivery. Typically, a delivery boy is expected to deliver 30-40 orders a day. ShopClues received 15 lakh orders in August and is expecting a 180-190 per cent increase by Diwali.
Online major Paytm has completely outsourced its logistics needs to more than 20 â€œexternal logistics partnersâ€.
The company having nearly 50,000 sellers on board charges no listing fee. It, however, typically charges anywhere between 2 per cent and 10 per cent of the transaction value from the seller, which includes marketing fee, payment gateway charges and actual logistics charges â€” the last one being transferred to the logistics partner.
â€œFrom our normal 15-20 lakh transactions per month, we expect an increase by two to three times by Diwali as business from Tier-II and -III destinations has increased significantly,â€ said Saurabh Vashishtha, Vice-President (Business), Paytm.
Logistics firm Shadowfax, founded in April 2015, caters to Flipkart, Amazon, Food Panda, Grofers etc as their extended arm providing workforce requirements. It currently has a workforce of around 400 employees, including those from rural areas it trained and groomed as delivery boys before employing them.
In expansion mode:
â€œWe provide deliveries in a radius of 5-6 km areas in Delhi and Mumbai where we are active at present, catering to hyper local merchants. By September-end, we will reach Bengaluru, too, as we see a 300 per cent growth in this sector where we have little competition,â€ Abhishek Bansal, Co-Founder, ShadowFax, said.
Truck aggregator firm LetsTransport, founded in January, has tied up with nearly 100 truck-owners in Bengaluru, and e-commerce firms such as BigBasket and Delivery.com.
â€œOur competitive rates bring new customers to us. For instance, local truck vendors charge â‚¹800 for the first five km of delivery while we charge only â‚¹350,â€ said Pushkar Singh, Co-Founder, a mechanical engineer alumnus from IIT-Kharagpur.