How Logistics Has Played A Key Role In Boosting The D2C Sector In India
The COVID-19 pandemic laterally inverted the world, leaving the global economy under a pile of rubble. However, e-commerce turned out to be one of the very few sectors that managed to witness steady growth. Even over the past few years, e-commerce in India has matured considerably and has become a stable part of Indian households, a few reasons for which are increased internet seepage and easy access to technology.
Today, eCommerce comes as an experiential package comprising the Direct to Consumer (D2C) model and logistics automation, to provide seamless selling and shopping experiences to the merchants as well as their customers. For any business, logistics is crucial to ensure the smooth functioning of operations and for the D2C sector, it has played an instrumental role in driving its progress. Particularly in challenging, uncertain times, streamlining business logistics is one of the most vital aspects. That being said, let’s take a look at how logistics has been a game-changer in boosting India’s D2C sector.
Evolving D2C and Logistics Ecosystems
The pandemic stomped into the world of business and compelled the logistics and the D2C ecosystems to evolve as per the changing consumer expectations. The importance of third-party logistics players surfaced as managing an e-commerce business with seamless end-to-end operations became a daunting task, especially for the small sellers. As for the D2C players; they had been turning to third-party logistics facilities even before the pandemic, but as the COVID-19 global crisis left supply chains disrupted, the demand for their AI-powered offerings got further accelerated.
Last-mile Efficiency
Since the beginning, the prognosis of Direct to Consumer and logistics has gone hand-in-hand. Increasingly, online sellers have started adopting cutting-edge technology to provide frictionless services to customers. For D2C sellers, last-mile efficiency is a crucial aspect of ensuring enhanced customer satisfaction, which can be achieved with the helping hand of third-party logistics solutions providing automated end-to-end services, from automated warehousing to doorstep deliveries. Furthermore, these platforms have a wide network of expert courier partners, the ease of automatic pick-up and delivery, and even real-time order tracking. With such digitised offerings, D2C sellers can minimise manual error and offer an unforgettable shopping experience to their customers.
Catering to Local Demand
The hyperlocal delivery industry is topping the charts, at the moment. Consumers are looking to purchase products at the click of a button and the sellers are more than happy to provide the convenience of doorstep delivery to them. For D2C sellers, seamless logistics is what keeps the business going and helps them fulfill local demand. Safe to say, user-friendly technology, easy-to-navigate applications, and experienced courier partners, are making it simpler than ever for these D2C sellers to avail services of 3PL brands.
Warehousing and Inventory Management
Logistics players are democratizing the world of commerce by providing easy and cost-effective access to automated warehousing solutions for all kinds of merchants, even the ones owning small scale businesses. From offering a flexible fulfillment model to ensuring that these sellers don’t have to go through a case of inadequate storage space during a surge in demand, third-party logistics facilities are offering the best-in-class services to sellers with the help of top-notch technology.
Logistics platforms are helping the D2C segment grow further through the aforementioned tech-enabled services, all the while deploying the highest safety protocols and maintaining the best hygiene practices. According to a report by Avendus Capital, D2C brands are potentially looking at a USD 100 billion worth of addressable consumer opportunity in the country by 2025. To help the segment adapt to the changing business environment, meet consumer expectations, and fortify its operational efficiency, logistics will continue to play a vital role that cannot be written off.
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