India E-Commerce Logistics Market Outlook to 2025

Driven by Changing Shopping Patterns and Increasing Demand of Fast Delivery Services


Author(s):Soumya Bansal

Product Code:KR1052

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Published on

March 2021

Total pages


Table of Content

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About the Report

About the Report

High Internet Penetration owing to strong government initiatives coupled with reducing prices of smart phones and data plans by telecom service providers has led to a drastic increase in the number of Online shoppers in India.

The E-commerce Logistics sector in India is in late growth stage and has evolving as an organized market structure. The Industry has flourished due to changing Consumer shopping preferences from physical stores to online market places from the comfort of their homes. The E-commerce Logistics Industry has grown at a CAGR of 24.3% on the basis of revenue and a CAGR of 27.4% on the basis of number of shipments over the period FY’2015-FY’2020. Major growth drivers of the Industry are higher internet penetration, increase in number of Smartphone users, increasing propensity to purchase online, growing demand from Tier 2 and below cities, new technological innovations, rising consumer expectations for fast delivery services and more.

India E-commerce Logistics Industry

India E-commerce Logistics Industry Segmentations

By Domestic/International Shipments: E-commerce Logistics market of India is skewed towards Domestic Shipments. For International Shipments, Indian merchants prefer mostly selling online to countries such as US, UK, India, Russia and Israel.

By Type of Player: In HouseLogistic players such as ATS, E-kart etc. generate larger Revenue share in comparison with third party logistic players such as Blue Dart, FedEx etc. in India owing to larger preference for In-house logistics due to economies of scale.

By Product Category: Electronics (Mobile phones, Large Appliances, etc.) and Apparel (Clothing, Accessories, Foot wares, etc.) comprise the largest market share in E-commerce Logistics India. While electronics have the least return rate, products under the Apparel category have highest rate of return.

By Delivery Time: Majority of e-commerce shipments in India take two-four or more days to deliver. Especially product categories like furniture, large appliances and more take greater time to reach consumers in comparison to other products such as Food and Beverages, Apparels, etc.

By Cities: Majority of online demand in India comes from Metro and Tier 1 cities owing to large internet penetration in these areas. Delhi/NCR, Bangalore and Mumbai are the top three cities with largest shipments in India. Tier 2 and lower Cities is the new emerging segment in the country and will see a high growth basis Shipments delivered in next five years in India.

By Payment Mode: Most of the people in India still prefer to pay cash on Delivery rather than use prepaid services like digital wallets. People residing in Metro and Tier 1 cities usually prefer prepaid shipments while Tier 2 and below population still have COD shipments.

By Product Return Rate: Indian population still returns/replaces many of its products bought online due to most common reasons such as wrong item received or product not matching. Clothing, Footwear, etc. are the products with highest rate of return in India.

Competition Overview

The E-commerce Logistics Industry of India is quite concentrated with presence of 10-12 major players in the market. Top 2 players namely E-Kart and ATS captures majority of the revenue share. Companies in this space battle against each other to acquire and retain clients, expand geographical presence, expand service offering and improve unit economics to increase margins. Worth of Mouth and Reputation play an important role in expanding client base in this industry. Delivery Cost, Delivery Time, Network Coverage, Brand Value, Technology Stack, Success Rate are some of the competing parameters each company focuses upon to gain customer trust.

Future Growth

The E-commerce Logistics Industry is expected to flourish in India with rising demand from Tier 2 and below cities (owing to higher internet penetration) and increasing consumer expectations for fast delivery services. This industry is expected to witness a CAGR of 23.6% in terms of revenue during the forecast period FY’2020-FY’2025F. Ongoing technological disruptions such as Monitored Robots, Drones, Inbuilt RFID, GPS, IoT, telematics and more which help in tracking Inventory and deliver products on time will gain higher traction in future. Expansion of Fulfilment Centres in Tier 2 and below cities will increase to better serve the population in these areas.

Key Topics Covered in the Report

  • India E-commerce Logistics Industry Market Size by Revenues and Number of Shipments.
  • India E-commerce Warehousing Industry
  • Trends and Development governing the Industry
  • Operating Model in E-commerce Logistics Market
  • Government Initiatives to boost the E-commerce Logistics Industry
  • India E-commerce Logistics Industry Market Segmentation basis Domestic /International Shipments, Type of Logistics Player, Major Product Categories, Delivery Time, Cities, Payment Mode and Product Return Rate.
  • Challenges faced by India E-commerce Logistics Industry
  • COVID Impact on India E-commerce Logistics Industry
  • Cost Component Analysis of the Industry
  • Investment Analysis
  • Cross Comparison of Major Players basis Operational and Financial Parameters
  • Cross Comparison of Major Players basis Business Landscape
  • Cross Comparison of Major Players based on Strength and Weaknesses
  • Future Technological Disruptions in the Industry
  • Analyst Recommendations

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Key Target Audience:

  • E-commerce Companies
  • Third Party Logistic Companies
  • Potential Market Entrants
  • E-Retailers

Time Period Captured in the Report:

  • Historical Period – FY’2015-FY’2020
  • Forecast Period – FY’2020-FY’2025F


Key Segmentations Covered in India E-commerce Logistics Industry:-

By Shipment Location (Number of Shipments)

  • Domestic
  • International

By Type of Logistics Player (Revenue)

  • Third Party Logistics
  • In-House Logistics

By Major Product Categories (GMV)

  • Electronics
  • Apparel
  • House Furnishing
  • Personal Care
  • Books
  • Others

By Delivery Time (Number of Shipments)

  • Same Day Delivery
  • One Day Delivery
  • Two-Four Day Delivery
  • Four and More than Four Day Delivery

By Cities (Number of Shipments)

  • Delhi/NCR
  • Bangalore
  • Mumbai
  • Hyderabad
  • Chennai
  • Kolkata
  • Ahmadabad
  • Others

By Payment Mode (Number of Shipments)

  • Cash on Delivery
  • Pre-paid

By Product Return Rate (Number of Shipments)

  • Accepted
  • Return/Replaced
  • Wrong Item Received
  • Product Not Matching
  • Damaged Product
  • Others


Companies Mentioned:

  • ATS
  • E-Kart
  • Delhivery
  • Ecom Express
  • Bluedart
  • Xpressbees
  • DTDC-Dotzot
  • Shadowfax
  • Safeexpress
  • United Parcel Service
  • Gati
  • Go-Javas
  • DHL
  • Fedex
  • Aramex

Table of Contents

Table of Contents

1. Socio Economic Outlook of India

2. E-commerce Scenario of India

3. Logistics Infrastructure and Internet Penetration across various Regions in India

4. E-commerce Warehousing in India

4.1 Warehousing Concentration across India

4.2 E-commerce Warehousing Scenario in India

4.3 Tier 2 and Below Potential Markets for E-commerce Warehousing in India

5. Indian E-Commerce Retail Industry Outlook

5.1 Demand Infrastructure- Ecosystem of Major E-Commerce Players and Sellers

5.2 Indian E-Commerce Retail Industry Overview-(FY’2015-FY’2020)

5.3 Growth Strategies followed by E-commerce Retail Companies

5.4 Major Product Categories sold by E-commerce Companies

5.5 Government Initiatives to Boost E-Commerce 

5.6 Government Rules and Regulations

5.7 State Initiatives and Policy

6. Indian E-Commerce Logistics Industry Overview

6.1 Supply Infrastructure – Ecosystem of E-commerce Logistics Companies

6.2 Timeline of Major E-commerce Logistic Players

6.3 Operating in Growth Stage and is Witnessing Increasing Role of Technology

6.4 India Retail E-Commerce Logistics Industry Size-(FY’2015-FY’2020)

7. Market Segmentation- FY’2020

7.1 Market Segmentation basis Domestic and International Shipments

7.2 Market Segmentation basis Type of Logistic Player (In house Logistics and Third Party Logistics)

7.3 Market Segmentation basis Major Product Categories (Electronics, Apparel, Home Furnishing, Personal Care, Books and Others)

7.4 Market Segmentation basis Delivery Time (Same Day Delivery, One Day delivery, Two-Four Day Delivery, Four and more days delivery)

7.5 Market Segmentation basis Cities (Delhi, Mumbai, Bangalore, Chennai, Hyderabad, Kolkata, Ahmadabad and others)

7.6 Market Segmentation basis Payment Mode (Cash on Delivery and Prepaid)

7.7 Market Segmentation basis Product Return Rate (Wrong item Received, Product not matching, Damaged Product and Others)

8. Cost Component Analysis

8.1 Cost Component Analysis on the Basis of Number of Orders,  Weight of the Orders, Payment Method of Orders, Operating Model of E-Retailer

8.2 Average Delivery Costs based on Different Delivery Routes of the Delivery in India

9. Industry Analysis

9.1 Operating Models in E commerce Logistics Market

9.2 Cross Comparison between Fulfilled by E-Commerce Players and Dropship Model (Rationale, Major Companies,  Delivery Time, Pros, Cons, Logistic Margin)

9.3 Trends and Developments that are Governing the Industry

9.4 Challenges Faced by E-Commerce Logistics Companies

9.5 Challenges for E-commerce Players in India

9.6 SWOT Analysis of E-Commerce Logistics Market

10. Competitive Landscape in India E-Commerce Logistics Market

10.1 Competitive Landscape Basis Major Ecommerce Logistic Players in India

10.2 Cross Comparison of Major Players basis Strength and Weakness

10.3 Cross Comparison Matrix of Major Players (ATS, E-kart, Blue Dart, Ecom Express, DTDC, Safe Express, Express Bees, Gati, Delhivery, Shadow Fax, Go Javas) basis Operational Parameters (Year of Establishment,Fleet Size, Employee Size, Number of Pincodes Served, Number of Delivery Centers, Number of Fulfillment Centers and Hubs, Number of Delivery Personnel, Technology Partners, Number of Clients, Success Rates, Remittance Cycle, Delivery Time)

10.4 Cross Comparison Basis Financial Parameters (Total Revenue, Expenditure, EBITA, Net Profit/Loss, Marketing Expenditure, EBITA Margin, Net Profit/Loss Margin, Marketing Expenditure Margin)

10.5 Cross Comparison of Major Players  basis Business Landscape (Business Strategies, Recent Developments, Clientele)

10.6 Cross Comparison Matrix of Major Players (DHL, FedEx, Ups, Aramex) that Provide International E-Commerce Service (Year of Establishment, Fleet Size, Employee Size, Number of Delivery Centers/ Service Centers, Business Strategies, Clientele, Recent developments , Strengths and Weakness)

11. Investment Analysis

11.1 Funding Wave in India E-commerce Logistics Market

11.2 Investment Activities

11.3 Investment Map

12. Future Technological Advancements

12.1 Future Technological Disruptions

12.2 Technological Disruptions has led to Evolution of E-Commerce Logistics

12.3 Evolving Technological Advancements- Case Study:  Loginext

12.4 Logistics Fleet Management Company - Loginext

13. Future Landscape of India E-commerce Logistics Market- (FY’2020-FY’2025)

13.1 India Retail E-commerce Logistics Market Future Outlook

13.2 COVID Impact on India E-commerce Logistics Industry

13.3 E-commerce Logistics Market Future Outlook basis Shipment Location (International, Domestic) and Type of Logistic Player (3PL, In-House)

13.4 E-commerce Logistics Market Future Outlook basis Delivery Time (Same Day Delivery, One Day delivery, Two-Four Day Delivery, Four and more days delivery)

13.5 E-commerce Logistics Market Future Outlook basis Payment Mode (Cash on Delivery and Prepaid)

13.6E-commerce Logistics Market Future Outlook basis Return Rate (Wrong item Received, Product not matching, Damaged Product and Others)

13.7 E-commerce Logistics Market Future Outlook basis Cities (Delhi, Mumbai, Bangalore, Chennai, Hyderabad, Kolkata, Ahmadabad and others)

14. Case Study

14.1 Success Case Study of Amazon Transportation Service 

14.2 Success Case Study of E-Kart

14.3 Cross Comparison of  Major Players (E-Kart and Amazon Transportation Service) on the basis of  Operational Parameters (E-commerce Revenue, USP, Delivery Centers and Hubs, Network Coverage, Tie-up with Kirana Stores, Employee Size and Strike Rate)

14.4 Case study of E-Commerce focused Logistics Company – Ecom Express

15. Analyst Recommendations

15.1 What are the factors considered while choosing E-commerce Logistics Partner?

15.2 Market Entry and Positioning

15.3 How can Companies Optimize their Costs and Warehousing Services?

15.4 How can Companies Manage Reverse Logistics and Niche Specialization?

15.5 How Can Companies Increase their Network Reach and Reduce Capital Costs?

15.6 In Which Tech Should Company Invest to Achieve Smart Logistics?

15.7 Customer Journey and Promotion Strategy

15.8 Marketing Strategy

15.9 Potential Risks 

16. Appendix

17. Disclaimer

18. Contact Us

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