Recent studies indicate that India’s e-commerce logistics business will continue to develop significantly in FY23. For e-commerce logistics, total shipments increased to over a billion this year. The market for e-commerce logistics was roughly divided equally between in-house logistics and third parties.
Throughout the year, the industry experienced competitive trends. The market is expected to grow with an overall e-commerce logistics opportunity that will increase by a minimum of over 20% and comfortably reach over 10 billion parcels by FY28, thanks to consistent e-commerce development.
According to reports, D2C brands would experience total GMV (Gross Merchandise Value) growth of 35% over the following years. By CY27, D2C brands are anticipated to generate $33 billion in GMV across all channels.
The logistics sector contributes 14.4 percent of the GDP and employs a significant portion of the workforce. There is a huge potential for this industry in India, where it is predicted that the logistics sector will be worth $380 billion by 2025.
The reports also observe that Delhivery, which continues to dominate the e-commerce logistics market by a wide margin, is more protected from recent e-commerce challenges than its competitors because of its huge non-e-commerce clientele. This makes it more resilient as a logistic company.
Logistics players have a bright future because they anticipate a greater yield profile. They can gain market share in this rapidly expanding sector by providing D2C businesses with relevant and tailored offerings.