Etailers start Diwali preparations to avoid last year’s drawbacks

Diwali might be three months away, but etailers have already begun their preparations for the festive season. ET reports that most ecommerce websites are gearing up for the festive sales and the accompanying rush. Etailers have realised the importance of logistics in ecommerce.

The fact that logistics are the lifeline for online business cannot be ignored. Online marketplaces are strengthening their network with logistics companies. Most online retailers are expecting twice the number of sales in terms of GMV this year compared to last year. Therefore, they are preparing themselves for the blitzkrieg in advance.

Lesson learnt

Last year, many ecommerce sites faced issues in their Diwali sale and delivery. The primary problem was that the volume of orders was so large that the logistics companies were unable to keep up with it. Many deliveries were delayed much beyond the promised dates. So much so, many customers cancelled orders. Logistics companies faced problems like VAT and sales tax issues, which further prevented them from moving the parcels from their warehouses.

Reports say that most companies like Amazon, Snapdeal, and Flipkart, among others did brisk sale during the festive season. Snapdeal reportedly registered a whopping 100% growth in their sale. However, the logistics issues managed to put a blot on the otherwise happy time.

Major logistics companies

Ecom Express is one of the leading logistics firm currently. The company is doing well, and has recently raised investment from Warburg Pincus. Snapdeal’s GoJavas is also on the list of favourite logistics firms. Apart from these, DHL, BlueDart, and DTDC are also strong players in the market. Government run India Post is also slowly entering the ecommerce field.

Sales for Diwali 2015

Things are looking good for etailers, as they are expecting a good growth in sales this year. K Satyanarayana, co-founder and director of Ecom Express says that while last year they had roughly 80,000 deliveries in a day, this year it could easily hit 3 to 4 lakh in a day.

Flipkart, which has its own logistics section (Ekart), has increased its investment in linehaul in anticipation of this year’s sales. Neeraj Aggarwal, senior director of delivery operations, says that Flipkart routes 70 to 75% of its shipments through Ekart during the festive season. Likewise, Amazon, which also has its own logistics department Amazon Transportation Services (ATS), is looking at sprucing up its network.

Now is a great time to be an online seller, as more and more buyers are logging on to websites for their buys. And sales will naturally be high during festivals. Most online sellers have recorded a spike in their sales during festive time. As long as ecommerce sites are able to sort out their logistics issues, it will be smooth sailing as far as sales are concerned. So unroll the discounts, and get ready for the cash registers to ring in the good times.