Online retailers have been investing in strategic partnerships with the aim to build a strong logistics network through road and rail.
In order to implement last year's learning, ecommerce players are all set to strengthen its logistics, online marketplaces have begun preparing for this year's festive season well in advance.
Expecting twice the amount of sales in gross merchandise volume (GMV) in the season beginning middle of October, ecommerce players have been investing in strategic partnerships with the aim to build a strong surface-transport network through road and rail. "Last year, we did a peak of 80,000 orders per day and this festive season, we anticipate the numbers to go up to 3 to 4 lakh per day," said K Satyanarayana, cofounder and director of Ecom Express.
Neeraj Aggarwal, senior director, delivery operations, at Flipkart, said every festive season there is a three to four times increase in the volume of shipments. "We expect this year to be the same. The capacity of air cargo has not increased since last year and we have invested a considerable amount in linehaul for surface since last year."
Flipkart clocked Rs 600 crore in sales in 10 hours last Diwali. While the company partners with third-party logistics players for linehaul services (transport of cargo between two major cities around 1,500 km apart), it has increased the share of shipments by surface transport through road.
"Currently, more than 80% of our overall volumes are shipped by Ekart and 50% of the national load is shipped using surface transport.
During festive season, 70 to 75% of our shipments will be routed through Ekart," said Aggarwal. Amazon India is also extending the network covered by its logistics arm, Amazon Transportation Services (ATS).
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