Online eCommerce major ShopClues is aiming to expand its seller base and making intra-zonal shipments the norm to speed up deliveries and reduce logistics cost. This decision comes at a time when e-tailers are looking to fulfill orders faster than their competitors as discounts take a back seat.
Radhika Aggarwal, Chief Business Officer, ShopClues said the brand is moving towards dividing the country into different cities as opposed to regions for their shipments. The idea of shipping from within the zone of a customer works perfectly for structured categories. The unstructured category might or might not benefit from this.
She further said that ShopClues will work with local courier partners for deliveries within the zone.
Shipping within a zone leads to a cost saving of about 25%, resulting in better margins for the marketplace and prices for the customers. Alibaba-backed marketplace Paytm has also been expanding its online-to-offline shipments across regions to speed up delivery time. ShopClues had last year introduced the concept of neighbourhood market feature, which is currently in the pilot stage in Gurgaon for four-six hour deliveries.
Aggarwal said that ShopClues is presently has 4 lakh sellers on its platform and plans to increase it to 12 lakh sellers by the end of 2016. The increase will improve ShopClues regional selections and price range of products, mainly from the tier-2 and 3 markets. The GIC and Tiger Global-backed company has been working towards local outreach to on-board merchants in the southern region and plans to take its e-entrepreneurship business contest live on TV for a limited episode.
The company, valued at $1.1 billion in its last round of funding, is targeting profitability by mid-2017.