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Redefining Logistics with Airlines

E-commerce is growing in India both customers and businesses alike have frequently wondered how great e-commerce logistics works, given the phenomenal expansion of social commerce and e-commerce businesses. To develop their business and reach millions of clients, online firms in all genres require continual assistance and partnership with e-commerce logistics suppliers. With millions of customers opting to shop online, an e-commerce business needs more efficient and productive logistics solutions to handle increasing volumes and retain their customers.

Collaborating with a dependable and trustworthy logistics partner is simply the first step for e-commerce companies. E-commerce logistics businesses come in several versions – they help online stores with shipping, packaging, and picking. They also provide a variety of different shipping services that might assist a company in expanding and reaching a wider audience.

 

Indian E-commerce Market Scale Up:

It is no surprise to all as a result of the pandemic that in India, from April-May 2020, a consumer report found that there was already an increase of 11% in first-time online shoppers – 16% in new category online shoppers and 30% in online shoppers with larger purchases in existing categories.

The country’s e-commerce market is estimated to grow at a 30% compound annual growth rate over the next five years and serve 300-350 million shoppers by 2025. The number of e-commerce users is expected to grow by 47% to 948 million users in India by 2025

Facts of the e-commerce Industry in India:

  • 46% of the population in India shops online
  • According to the analysis, India is the eighth largest market for e-commerce with a revenue of US$63 billion in 2021
  • According to a Forbes Report, e-commerce In India Set To Reach $120 Billion In 2025
  • According to ITLN, tier II and tier III have a faster growth rate than tier I

 

Rising Importance of Quick Delivery and Fast Logistics in E-commerce:

No matter what the end customer wants their packages fast and cheap. The Amazon effect has many consumers around the globe expecting packages the next day or 2-day delivery.

Most transportation is via ground, it is the primary delivery mode and it becomes the cheapest and the easiest network to establish. But how can fast logistics in e-commerce be achieved via ground only transportation in India? It is an advantage for companies that have more capital. Larger companies equip several warehouses or Distribution Centers (DCs) around India in strategic areas to make sure they meet the customer’s desire for fast and inexpensive delivery.

This means there are increased costs for e-commerce companies on real estate (buy or rental), inventory, insurance, security, and other costs to ensure customers can get their orders fast via ground transportation.

For any e-commerce company the crucial for quick delivery is last-mile delivery. The process of delivering an order from a warehouse (or fulfillment center) to the customer’s delivery address is known as last-mile delivery. In e-commerce fulfillment, the major purpose of last-mile delivery is to deliver an item to a consumer as quickly as possible, making the entire fulfillment process swift and painless. Improving last-mile delivery can now help you provide lightning-fast shipment, resulting in a positive customer experience, and repeat customers.

Furthermore, with speedy shipping options, you can stay ahead of the competition in this overcrowded e-commerce scene by lowering shopping cart abandonment and raising conversion rates. Finally, by enhancing the order fulfillment stage, you may deliver items to customers faster, please them, and encourage repeat purchases.

 

Changing Behavior of Customers:

The e-commerce business has caught up with a significantly more westernized youth seeking new options and prospects. e-commerce is rapidly changing, with numerous new technologies and trends on the horizon. The pandemic forced the offline retail market to close and operate at a reduced capacity. That is why; the pandemic situation became one of the key drivers fueling this expansion, as is the customer’s transition to the internet. Customers now want speed and transparency in the process of delivery.

Future of Commerce Report (India) suggests that 85% of young consumers (18-34 years) and 90% of middle-aged consumers (36-54 years) moved to online shopping during the pandemic. So, brands had to focus on creating digital experiences that met their expectations. e-commerce companies and their customers want a seamless experience to track from the cart-to-the door.

 

Adaptation of Innovations for Indian E-commerce Companies:

The Indian e-commerce market should learn from the US and other more mature e-commerce markets while balancing the uniqueness of the Indian e-commerce sector. How?

  • Look for innovation to drive your complete customer journey including your delivery purpose
  • Think of ways to reinforce the brand value and meeting the brand promise
  • Search for organizations that utilize innovation to shorten delivery time
  • Increase ROI by utilizing true value which is not exclusive to just the delivery costs
  • Align the following technology and services to the total cost of expansion with multiple delivery options:

 

  1. The same day, the Next day, and 2+ days
  2. Costs of expansion and DCs by utilizing air options, not just ground options
  3. Extend options to customers
  4. Ensure technology is integrated into the e-commerce ecosystem, from e-commerce platforms like Shopify to deliver at the customer’s door

 

How SmartKargo can help E-commerce Companies:

Our expertise lies in providing airspeed and ground value to e-commerce companies. We deal with e-commerce logistics across the globe, and we do not believe in a one size fits all market – we customize a solution. We ensure we are a part of the e-commerce company’s growth approach. With Air transportation you can have faster delivery – that’s a given. Our Partnered airline is already going to where your customers are –

Global Presence Air Cargo Services

We offer other alternatives to spending large amounts on DCs. You may not need as many DCs while using SmartKargo can be said as “Warehouse in the air” and provide fast delivery across the country which is paramount for next day delivery. One of the central issues with DCs is that it always accounts for every product all the time. Air is always fast.

Our innovative technology provides all the aspects from the purchase on the e-commerce engine to the delivery to the customer. Some of our pivotal innovations include:

  • AI engine for route optimization for the last mile
  • Integration into e-commerce engines out of the box
  • Geolocation
  • Customer Alerts
  • Touchless Delivery
  • Real Time insights and reporting

 

Speed and Value are Paramount Factors:

For e-commerce companies their logistics partner’s objective  is to oversee the pick-up, and successful delivery of all orders placed with them. However, in the case of e-commerce logistics, the breadth of services is much broader. To be the most efficient, e-commerce logistics businesses must make use of the most recent technical breakthroughs.

Simply delivering the product isn’t enough in e-commerce because it serves such a broad number of demanding and eager clients. Customers expect to be able to easily track their orders and receive timely information from the e-commerce shop where they made their purchase. Proper inventory, order generation, tracking, NDRs, and returns management systems can ensure that your logistics partners make the entire process transparent to you and your consumers.

E-commerce logistics providers should ensure your customer’s journey is aligned with your brand and its brand promise. Look for those innovative companies that will extend your brand and provide the insights and analytics needed to keep you customers coming back.

 

Quick Delivery: Why it matters in E-commerce

Due to the epidemic, more people preferred going online to shop because stores were closed or understaffed, and people wanted to avoid being inside. In the world of e-commerce, delivery is a critical aspect in turning visitors into real buyers. Customers now look at the cost of various delivery methods first, while speed remains their second priority. According to Baymard Institute research, 16 percent of them abandon their cart because delivery is too slow.

Reasons for abandonments during checkout

 

What effect do delivery times have on conversion rates?

The customer’s delivery time can be a source of anxiety. The average cart abandonment rate on a website is about 70%. Customers will abandon their shopping carts less frequently if it is faster, and they will return more frequently if it is slower. Abandonment of shopping carts can happen for a variety of reasons:

  • Speed of site
  • Payment options
  • Exorbitant shipping fees
  • Lack of delivery options

If the customer’s delivery alternatives do not satisfy their expectations, customers will not hesitate to shop at another online store. An e-commerce store can be more successful thanks to quick delivery alternatives.

Schemes Marketplaces Offer For Fast Delivery

Customers like things that can be delivered quickly. By narrowing their search, the customer can discover just things that are delivered soon. Furthermore, platforms such as Amazon and eBay provide this type of product more visibility.

  • The Amazon Buy Box: The yellow button with the words “add to cart” inscribed on it. It not only allows you to place the order faster, but it also allows you to stand out in such a crowded product flow.
  • Amazon Prime’s Same-Day Delivery gets customers their products as fast as 5 hours.
  • eBay Guaranteed Delivery: Sellers boost product visibility, and consumers receive their orders in as little as three days. It also allows for better reviews and shorter delivery times. There is a Fast ‘N Free safeguard if the deadlines are not met.

Customers are willing to spend more for a faster, more affordable delivery promise. 48% of consumers in India say they will pay more for a product if it promises swifter shipping. That’s a compelling case for e-commerce retailers and businesses to up-level their logistics business model to support fast delivery.

Nearly a quarter (24%) of customers indicated they would pay more to receive products within a one- or two-hour window of their choosing, while 41% of consumers are willing to pay a fee for same-day delivery.

Many big consumer companies and their shippers are re-evaluating everything from package shipping caps to pricing methods in general as a result of the growing emphasis on same-day delivery and shorter delivery windows.

 Multiple Shipping Choices 

84 percent of Internet users are willing to switch websites if they don’t have enough delivery options. E-commerce will be more appealing and will have more opportunities to convert prospects into consumers if they have speedier and more profitable logistic options.

This technique also allows for case-by-case adaptation, allowing it to better fit the needs of purchasers. It could be the key to acquiring a larger market share and a more favourable position among competitors.

Five Advantages Quick Delivery Offers

  • Reduce shopping cart abandonment
  • Increase conversion rates
  • Increasing customer happiness and loyalty
  • Increase product awareness in marketplaces
  • Gain market share and become more competitive

Optimizing For Fast Delivery Without Investing Billions of Dollars

If online retailers and e-commerce businesses want to stay relevant in an Amazon-first world, they must find a solution that enables them to offer same-day or next-day delivery—affordably. They need to make the right investment to bring goods closer to their customers and optimize for the last mile. E-commerce businesses must seriously consider how they will live up to today’s consumer demands and stand out in the market because quick delivery is no longer just a nice-to-have alternative. It’s a must-have!

The solution? Add cost-effective e-commerce dedicated logistics solution that provides supply chain process optimization and delight to end customers.

SmartKargo’s E-commerce Logistic Solution enables retailers and e-commerce brands to stay agile in an ever-changing ecosystem and to meet the increasing demand for fast and cost-effective delivery. Our solution provides e-commerce businesses with a new value proposition, setting them apart from competitors. While the SmartKargo e-commerce solution brings the benefit of ultra-fast service to customers, there are plenty of advantages for e-commerce businesses too:

  • We ensure to reduce last-mile transportation time and costs to offer faster delivery.
  • We offer pan-India e-commerce packages delivery within a record time of 20 hours with live tracking.
  • SmartKargo powered by IndiGo gives its e-commerce clients an edge in the market by providing airline support in the middle mile transportation, making the delivery process faster and more efficient. The airline’s existing belly capacity is used to ship packages, at the speed of flight.
  • We maintain full transparency to customers with real-time tracking.

Bottom Line

As observed, timing is important when it comes to delivery alternatives for order fulfilment or retail operation. The effect of ecommerce is only going to grow, posing new issues when it comes to balancing delivery goals with consumer expectations.

This challenge, on the other hand, offers a lot of possibilities. Technology advancements, along with a re-evaluation of shipping and logistic methods, can go a long way toward assisting a company in meeting consumer expectations and assuring customer happiness.

Finally, in today’s corporate world, giving fast delivery alternatives is both required and critical. After all, fast delivery isn’t just something that customers want—something it’s that they’ve learned to expect.