Impact of eCommerce Growth on the Logistics Sector

With every passing year, the ecommerce industry is growing, allowing the logistics sector to opt for new heights of success. Moreover, more people are switching to online purchases every day, creating a better stepping stone for all these courier companies in India. Here you will get to know, we will emphasize how the ecommerce impact on logistics is allowing both the business to grow simultaneously.

The E-commerce Impact on Logistics Industry

As the customer’s demand increases every day in this competitive environment, companies like FedEx are launching different fulfilment services to reach the global network. The sellers are distributors are also looking for better ways to carry out seamless shipping. Different logistics industries are bringing in a series of innovations to make the process as advanced as possible. They are even supplying perishable goods within two hours of order placement.

The eCommerce Impact on Logistics: Drawbacks And the Challenges

The last mile delivery has always been a challenge in e-commerce logistics, as per the report of CBRE, it has been seen that this e-commerce logistics are transforming the work process of their supply chain and enhancing the performance of the traditional logistics platforms dependent on regional distribution.

The future ideas for eCommerce logistics

There have been few other data as well. In the below list of innovative changes that have been implemented on logistics to stave off the last mile challenges.

There might be some rules and regulations coming in to reduce the traffic congestion that will confuse deliveries. This may lead to the establishment of different integration centers in rural and urban areas.

There may be something called re-logistics, which combines retail and logistics.

A better inventory will be established, and operational efficiency is expected to increase in the future. Mobile warehousing can be an idea that allows flexible distribution.

How Do E-commerce Logistics Work?

It is important to understand how logistics work in an e-commerce business where on-time delivery is the primary driving force. Logistics has always been a great challenge, especially in a country like India. Improper delivery, product returns, misrouted items. The terms sound familiar.

Whether you are a buyer or an ecommerce seller, the consequences caused due to an unmanaged logistics company affect both sides.

Over the years, the various drawbacks of logistics have not only pulled back the growth of e-commerce but have also led to many people losing trust in online businesses.

Since then, Indian logistics companies decided to introduce some advanced technology implementations to reduce errors and cater to better management systems.

With the popularity of e-commerce, the high demand for products has risen sharply

Therefore, it became mandatory for buyers to track their product from the shipment until it reached the targeted customer.

Logistics and e-commerce are complementary. In business, there is no purpose for one without the other. India has a vast country with a population of over 1.8 billion.


Moreover, due to a wide diversity in culture, the country witnesses an ample number of festivals all around the year. For all these occasions, ecommerce has become the go-to place for all country residents, and, understandably, we need logistics for that. 

The model of these e-commerce logistics has become so advanced that now everything can be tracked with a button click. Various companies worldwide have said that the logistics sector is one of the most important sectors to watch for in 2019. The fact that logistics are getting customized according to the customer’s needs has never been more important.

What is the Logistics?

A logistics is an organization that acts as a supply chain and helps coordinate and move resources from one point to the other. The term logistics has long originated from the military source to refer to the movement of pieces of equipment and supplies in an organized way.

Importance of Logistics

When we talk about the importance of logistics, know that it is one of the most important factors to consider if running an e-commerce business. Even though many start-ups and other small businesses stress their production and quality, but without logistics, no matter how good your products are, they can never reach your customers. This is where the logistics come in. Their main services include inbound transportation, outbound transportation, fleet management, warehousing, materials handling, order fulfilment, inventory management, demand planning, etc.

The current impact of eCommerce on logistics

The recent Indian logistics sector includes the inbound and outbound parts of the manufacturing and service supply chain. It is expected that India’s logistics industry will continue to maintain a strong annual growth rate of 10-15%, driving the pace of overall economic growth. However, if you ask what a logistics company does, there are two answers.


One, they move the product forward, the others move backward. The movement of products in the forward direction is called freight forwarding. This is a process that involves shipping the product from the seller to the customer.

The second process is reverse movement, usually called reverse logistics. It is done when the product is not delivered to the customer. Reverse logistics is a beneficial logistics process that prevents product damage and allows it to be reused.

It is important to define a specific transportation strategy to ensure correct delivery. These blogs discuss some transportation strategies and how they work.


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