Indian emerging e-commerce sector is estimated to grow to $100 billion in revenues according to latest Morgan Stanley report. To aid phenomenal growth in this space lot of innovations in logistics and delivery model are emerging in India.
Flipkart Pickup Store: Flipkart has introduced a new delivery model where you can pick up your delivery from an authorized collection centre. Flipkart hopes to resolve the issue of non-delivery due to non-availability of customers at the delivery address. Also it will be convenient to customers as they don’t have to worried they are available at the delivery address. Initially this service will cater to 20 cities in India and will be further expanded. Flipkart now services around 10000 of the 25000 pin codes in India. Company expects it to be a game changer for expanding into Tier IV cities.
Drone Delivery: Flipkart is planning to use drones for delivering goods in rural areas. It will help in saving a lot of time and human resources for delivering goods. Though civilian drones are currently banned in India, DGCA is fast-tracking the issuing the guidelines for the use of civilian drones. Amazon is planning to start a similar service in USA known as Amazon Prime Air and is waiting for approval from U.S. Federal Aviation Administration.
Kirana Stores: Amazon India has launched express delivery service called KiranaNow in Bangalore, under which they have tied with local mom-and –pop stores to deliver your everyday essentials from Amazon to your doorstep in 2-4 hours. Currently it is servicing 12 pincodes in Bangalore.
Crowd-Sourced Delivery Model: Crowd-sourced delivery model that will connect local sellers and buyers with the help of voluntary delivery personnel, reducing delivery time. It will help build a sound last mile delivery channel. Flipkart has tied up with Dabbawalas of Mumbai for last mile delivery. Dabbawalas will initially collect Flipkart marketplace shipments from the delivery hubs and deliver it to customers, while picking up lunch box.
Petrol Pump: Bharat Petroleum gained a foothold in online retail space by partnering with Amazon. An agreement was inked between BPCL’s ARB, Retail set up and Amazon’s ATSPL for setting up “Pick Up store” initiative at select BPCL retail outlets. Online shoppers can collect their packages at pick-up points at their nearest gas station under this agreement.
India Post :With 1,54,882 delivery post offices,India Post has an extensive network which can be used by e-commerce companies for better coverage. E -commerce players like Amazon and Snapdeal have already started pilot projects in collaboration with India Post .It is viewed as a win-win situation for both parties.With India Post earning revenue and E-commerce sites getting access to a big delivery network.
App-Only Strategy: Myntra adopted a disruptive strategy by going App-Only Model trying to tap ever expanding smartphone market. Also it gains by reducing infrastructure cost related to IT services. Customers will be benefited by a personalized experience. Flipkart is planning to do the same from September 2015.
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