India's e-com to hit $300 bn, 3PL shipments to 17 bn by 2030: Redseer

06 Oct '23

2 min read

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Insights

India's e-commerce sector is projected to see a five-fold growth, rising from $59 billion in 2022 to an estimated $300 billion by 2030, Redseer Strategy Consultants said in a report.
Value-seeking mass consumers will propel the growth.
The study projects a six- to eight-fold growth in third-party logistics shipments—from 2 billion in 2022 to 13-17 billion in 2030.

India's e-commerce sector is projected to witness a five-fold growth, rising from $59 billion in 2022 to an estimated $300 billion by 2030, according to a report by Redseer Strategy Consultants. Value-seeking mass consumers will propel the growth.

Highlighting the rising adoption of e-commerce in tier-2 cities and beyond, the report said the combination of a growing base of mass consumers and the expansion of third-party logistics (3PL) service providers is catalysing shipment volumes. These volumes are projected to rise sharper than the growth in gross merchandise volume.

The study projects a six- to eight-fold growth in 3PL shipments, rising from 2 billion in 2022 to 13-17 billion in 2030.

Meesho topped among the contributors to e-commerce 3PL shipments in India between January and August this year. Other players included Flipkart, Ajio and Amazon, while vertical e-commerce platforms, direct-to-consumer (D2C) brands and smaller e-tailers accounted for the rest.

As 3PL scales up, shipment costs are projected to decline by 23 per cent, moving from ₹60 in 2023 to ₹47 by 2030.

Demand consolidation in smaller cities and policy adjustments will be the key drivers for this cost reduction, promoting efficient resource use, the study noted.

Shipment protection, weight-related disputes, return-to-origin processes and responsiveness are among the key challenges being faced by the 3PL sector now.

Fibre2Fashion News Desk (DS)

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