Challenges Faced by Ecommerce Logistics Company in India

Ecommerce has become the preferred shopping method among customers and is gaining increasing popularity. The Indian Ecommerce industry has been on an upward growth trajectory and is expected to become the second-largest Ecommerce market in the world by 2034. 

An ecommerce logistics company needs management of inventory, warehousing, packaging, labeling, billing, shipping, payment collection, handling returns, and exchange. Ecommerce logistics involves problems like increasing expectations for a short delivery time, real-time tracking, and easy returns, making it a constantly evolving challenge to stay ahead in the game.

 

Any logistics company in India needs to provide efficient fulfillment services and fast shipping to meet customer needs and expectations. India is a country with a large geographical presence. To cater to high demands, effective inventory management with faster, cheaper shipping, implementing technology is the key to a successful ecommerce logistics strategy. Ecommerce logistics has become an essential part of supply chain management and has emerged as a highly specialized service as a reason.

 

Logistic challenges faced by the ecommerce industry

 

Ecommerce fulfillment requires speed and efficiency, but there are a few challenges that make it difficult but not impossible to overcome.

 

·         Poor Infrastructure

 

India’s logistic infrastructure is insufficient and ill-equipped to handle road, air, or sea transit. A lack of proper infrastructure leads to inefficiency, longer transit times, higher logistics costs, and returns. With the Indian Government taking a keen initiative to bring down overall logistics costs, infrastructure streamlining investments are on the rise. With proper infrastructure operational efficiency, cost control would be possible.

 

·         Adoption of New Technology 

 

With most companies yet to embrace new technology, tracking and handling returns is a major headache for logistics companies. New technologies are enabling process improvements with their capabilities to analyze real-time information for better decision-making. 

These technologies integrate machine learning and AI-based solutions for route navigation, driver allotment, and much more, which enables companies to save on total operational costs, reduce supply cycle time and improve on the last-mile. By using data-driven technologies such as Big Data, IoT, sensor technologies, and machine learning insights, operational efficiency can be improved.

 

·         Absence of Effective Real-Time Delivery Tracking System

Real-time delivery tracking would help companies and customers keep track of the status of the package. This tracking would allow companies to share updates on deliveries in real-time. Current real-time location systems are based on wireless technologies, such as Wi-Fi, Bluetooth, ultra-wideband, RFID, and GPS. 

With the help of these systems, real-time updates can be provided to keep track of the locations and statuses of drivers. Last-mile tracking provides complete order transparency to the customers. Tracking helps to solve internal delivery challenges and communicate critical information to guide the delivery fleet in case of heavy traffic or poor weather conditions.

 ·         Inability to Handle Product Returns

 

Logistics for the return of products purchased on ecommerce websites remains under-developed and creates significant issues for consumers as well as logistic partners. The lack of proper product-return processes can lead to customer and revenue loss.

 

Safexpress, a market leader in supply chain and logistics, offers solutions from warehousing to timely distribution of goods across India. Safexpress B2C specializes in ecommerce logistics and supply chain management, offering strong, tech-enabled, real-time data capturing solutions to facilitate time-sensitive, hassle-free, safe warehousing and inter-modal express distribution through its enviable surface and SafeAir infrastructure across India.

 

In Conclusion

 

The ecommerce market has become highly competitive with customers having more control over the delivery process than ever before. In such a scenario, the main aim of an ecommerce logistics company would be to provide a logistics solution that would deliver parcels faster, safer, and accurately.