Broadband India Forum
Web 2.0 & Services => Technology => Topic started by: wiredlife on February 19, 2015, 05:32:08 PM
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Ecom express has Dominant share of air within eCommerce logistics: 90-95% of total eCommerce goods shipped within the country go via air, and this could remain high at 70%.
Overall market for last-mile delivery would be Rs1,450cr with top 5 players accounting for 80% of the total market. In all, 1 million parcels are shipped daily.
Key factors for growth are scale and reach, service level, cost, reliability. 3PL players fare better than established courier companies and logistics arms of eCommerce companies in most of the above factors except reach. Existing large players like Blue Dart have substantial revenues coming from mail, making this a lower priority for Ecom express.
Ecom express delivers over 100k packages every day and aims to grow to 200k over next year. Average revenue per package shipment would be Rs85 while direct cost works out to be Rs60-65 per package.
Over longer term with scale logistics, costs could come down to 6-12% of gross merchandise value, as per company. Ecom express states that it needs an average of 150-200 packages daily in any city to achieve break-even.
Return rates vary from 5 to 20%but average 8-10%. Cash is remitted in 3-7 days for large eCommerce vendors of Ecom Express.