The Role Of Logistic Companies In The Growth Of E-Commerce Companies

E-Commerce companies not only ensure that the customers can make purchases online but also work on satisfying the customers with faster delivery. For the efficiency function of any eCommerce company, the logistic company or component attached to it plays an important role. The logistics companies ensure that the packages are delivered to customers in an undamaged form and at a faster pace. This is the reason why both the eCommerce sector and the logistic sector are experiencing mutual growth at the current time. 
Impact Of E-Commerce Companies On The Logistic Sector 
In the last few years, eCommerce companies have undergone a massive transformation. The popularity of the eCommerce companies has led to the improvement of their infrastructure and increased their dependence on the logistic sector. During the pandemic, eCommerce companies saw unprecedented growth not only in India but across the globe.

eCommerce has started working in ties with logistic companies like TrackOn for faster delivery of their products. The growth of eCommerce companies is giving direct opportunities for logistic companies to grow. Further, eCommerce businesses do not want to have their very own logistic component in the business. As a result, they are outsourcing the logistic component of the business to third-party logistic companies. To sum it up, eCommerce companies are bringing direct businesses to logistic companies. 
Role Of Logistic Companies In The E-Commerce Sector 
Shree Tirupati and other logistic companies play an extremely crucial role in making the entire shipping process easier for the eCommerce companies. The logistics aggregator platform is one of the trends that has emerged in recent times. Such platforms monitor all the shipping orders and, in addition to that, stay in touch with multiple courier partners for multiple shipments. 

eCommerce companies deal with bulk orders. Logistic aggregator platforms help eCommerce companies to manage bulky orders with quick integration. To meet the growing demand for shipment, the logistic sector has undergone a massive technological transformation too. Advancement of logistic sector technology includes using machine learning, IoT, artificial intelligence and automation. With the adoption of such technology, the logistics sector is making it possible for eCommerce companies to fulfil their promises to their customers. 
The Collaboration Between The E-Commerce And The Logistic Sector 
Amazon has set a very high standard for the logistic companies by satisfying their customers with extremely fast delivery. Therefore, even the small eCommerce companies are working toward improving their delivery time. Other eCommerce companies can only achieve this by investing in warehouses and distribution centres and improving the logistics process. 

eCommerce companies that fail to maintain their logistic element are bound to fail. It is because the customers will not accept less due to their changed behaviour. Therefore, it has become extremely important for the eCommerce companies to tie up with logistic companies that are presenting innovative solutions to ensure it. 

The Indian eCommerce is expected to have a CAGR of 10% between 2021-2025. Coincidentally, the CAGR of the logistic sector of India between 2017 to 2025 is also expected between 10-12%. The numbers indicate that the Indian eCommerce and logistic sectors enjoy mutual growth. Also, technological advancement is taking place in both sectors, increasing their opportunity. The market drivers of these sectors include the popularity of B2C business with a massive increase in internet penetration. In the past few years, the pandemic has worked as a catalyst for an unexpected growth too. 

Not to forget that India’s percentage of untapped markets is extremely high. Therefore, there is a huge potential for eCommerce companies to grow. Similarly, the reach of the logistic sector also has a huge potential to expand by including remote locations in the country. By 2025, India will be sporting more than 65 million digital buyers. It clearly indicates that the demand in both sectors will be high shortly. 

Now the time is right to implement further technological advancement in the sectors to meet the future demand of the businesses. The pandemic has brought the much-required structural reforms in these sectors and has forced the industry to work on its shortcomings. However, now to excel, the sectors have to go beyond it and innovate further to satisfy the customers. It will be interesting to see these sectors’ adoption to match their popularity and demand.