E-comm retail logistics to grow 36% in 5 years

By NT Bureau Published on Jun 16, 2018 02:40 PM IST

Chennai: The Indian e-commerce retail logistics industry would grow 36 per cent in the next five years, a report has stated.

The e-commerce retail logistics market is valued at $35 billion in 2018, and is projected to witness a growth of 36 per cent in the coming five years,' said a joint report by KPMG and CII.

The sector is serviced by traditional logistics service providers, e-commerce retail focused logistics service providers and captive logistics arms.

"It is largely a captive market (49 per cent share), however, a sizeable share is still dominated by new age players catering especially to e-commerce retail," the report said.

The study further revealed that return shipments constitute 18-20 per cent of total shipments in the e-commerce industry.

"However, with stricter return policies and improvement in processes, returns are expected to reduce to 10-12 per cent by 2020," it said.