As one of India’s leading end-to-end technology enabled logistics solutions provider to the e-commerce industry, Ecom Express has a front row seat when it comes to witnessing the emerging trends in this dynamic sector.
With the massive e-commerce market opportunity led by key growth drivers including increasing smartphone penetration (besides reducing price of smartphones), increasing internet penetration (with growth led by rural internet users), increasing share of online shopping (and increasing average spend per online shopper) and demographic spread, it is imperative to understand these trends to remain competitive and relevant in this sector.
Our objective through the insights series, is to delve deeper to understand these developments, including changes in the demand/ supply pattern, product categories, price points, consumer behavior etc., and share with all market participants/ stakeholders in this industry.
Part 1 – Market Demand across Regions
| Region | Share of Demand |
States |
| North | 26% – 28% | DL, HP, HR, J&K, PB, RJ, UP, UK |
| South | 28% – 30% | AP, KA, KL, TS, TN |
| East | 18% – 20% | AS, AR, BH, CG, JH, ML, MN, MZ, NL, OD, SK, TR, WB |
| West | 25% – 27% | GA, GJ, MH, MP |
Part 2 – Market Demand across Tiers
| Tier1 | Share of Demand | ASP* | %COD# | PPD: RTS%2 | COD: RTS%2 |
| Metro | 45% | 1500 | 55% | 2% | 20% |
| Tier 1 | 15% | 1400 | 65% | 2% | 18% |
| Tier 2 | 10% | 1600 | 65% | 2% | 18% |
| Tier 3 | 10% | 1700 | 70% | 2% | 20% |
| Tier 4 | 20% | 1600 | 75% | 2% | 22% |
*Average selling price in INR
#Share of forward shipments
1. RTS (Return to Shipper, also called as RTO i.e. Return to Origin), where shipments are undelivered to the end-consumer and hence return back to the seller
3. PPD (Pre-Paid Delivery)
4. Tier definition by population:
|
Tier |
Population |
|
Metro |
>6Mn |
|
Tier 1 |
1.5Mn – 6Mn |
|
Tier 2 |
1Mn – 1.5Mn |
|
Tier 3 |
0.25Mn – 1Mn |
|
Tier 4 |
<0.25Mn |