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Ensuring On-time Deliveries Key to Online Retailers in India

Online retailers are waking up to the fact that getting logistics right is the key to succeeding in India. While they can do little about the potholed roads and local government restrictions, the ventures are investing and innovating in areas that they can make a difference in.

With most of the growth coming from beyond tier one cities, this has become all the more important. Also, if the $2.3bn sector is to grow to the projected $38bn in five years, it is vital for online retailers to get their logistics issues sorted out quickly.

"One of the issues many ecommerce companies face is that in order to sustain a significant growth momentum, they need to go beyond tier-1 markets...For that, the delivery network has to significantly expand without compromising on the customer service levels and expectations," said Manish Saigal, managing director at advisory firm Alvarez & Marsal.

Setting up a distributed chain of warehouses, using technology to determine where to expand to and training delivery staff to handle more customer service responsibilities are just some of the steps these firms have taken.

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