Impact of E-commerce on Logistics

Abstract

The online retail space is evolving like never before. The prospects for the
ecommerce industry are getting bigger and the momentum is just building up and growing
steadily and rapidly. . With infrastructure enhancements like logistics, digital connectivity,
increased awareness and a greater impetus on the benefits of online shopping and the
bullish growth, the going is great for both ecommerce and logistics companies and it can
only get brighter and there is nothing to stop this mammoth tide. The growing online
market presents logistical tests as well as newer markets and more opportunities.
Companies are making strategic acquisitions so as to better their market presence, enter
newer markets and niche segments. A marketplace model with no inventories, investing in
larger and bigger warehouses and facilities with a key focus on delivery, tailored finance
structures are the new order of the day for most logistics companies. Logistics market is
expected to grow annually at 3% till 2020. Today, the logistics sector is the fifth best
thriving industry in India. In developing markets like India, based on product type, market
development and awareness, different e-commerce logistics patterns are in place. As these
patterns grow, and are accepted, it will definitely bring about marked changes in the actual
physical supply and delivery networks. This is giving rise to new forms of logistics models
that incorporates e-fulfilment centres, delivery and package hubs, localized depots that
cater to order fulfilment and also process the returns. The author tries to discuss about the
presence of MNC’s and their growth in the e commerce.