ITV

Category: e-commerce

  • 2024: Indians placed 29 per cent more dinner orders than lunch on Swiggy

    2024: Indians placed 29 per cent more dinner orders than lunch on Swiggy

    MUMBAI: Dinner or lunch?

    Is that a no-brainer for all of us? 

    Not really. We thought it woud be an equal split between the two. But India’s online meal buyers  placed a whopping 215 million dinner orders in 2024 – nearly 29 per cent higher than lunch orders on Swiggy.

    It raises the question: why the gap?

    Are Indians resorting increasingly to intermittent fasting?  

    Or is  it that work pressure Is making them skip lunch?

    Or is it that somehow or the other they are able to prepare their lunch and lug it with them to the office?

     Or is it that India  can cook lunch at home unlike dinner for which the double income families (that are increasing in number)  have no energy left traveling home long distances from work in the evening?  Hence, an increasing number of them is ordering in.

    Be that as it may, this and lots of other nuggets of information have emerged from Swiggy‘s ninth annual report How India Swiggy’d in 2024.
     

    Breakfast

    Breakfast is often hailed as the most crucial meal of the day and prepares us to face the day with gusto! But does it remain a bastion of wholesome goodness, a sanctuary of nutritious beginnings? Or do guilty indulgences take over? 
    South Indian favourite, with 8.5 million dosas and 7.8 million idlis were way up front ahead of the rest. as breakfast  True to its roots, Bengaluru enjoyed an incredible 2.5 million masala dosas in 2024, while Delhi, Chandigarh, and Kolkata couldn’t do without their classic crowd pullers of chole, aloo parantha and kachoris, respectively.

    Snackables

    Munchies and snackables were the best accompaniments to get through a day that is not going your way or a day that you just cannot forget. They go well for consumers who can’t stop biting their nails at work, the ones who  are set for a  late night horror movie binge, watching that nail-biting football match, or finishing a last minute presentation.  The chicken roll proved to be the  utimate khiladi as the nation’s most ordered snack in 2024, with a staggering 2.48 million orders. Hot on its heels were the crowd-favorite chicken momos at 1.63 million orders, while potato fries stayed in the game with a crunchy 1.3 million orders, showing they’re no side dish in this meaty contest!

    The chicken burger proved to be the ultimate midnight indulgence with a staggering 1.84 million orders between 12–2 AM! Chicken biryani as a close second, continued to be the evergreen superstar- a 24×7 obsession! But the real night owl award goes to a Delhi user who ordered a jaw-dropping 250 Onion Pizzas in a single order—sounds like a wild pizza party!

    Desserts

    2024 was the year when Indians developed a real sweet tooth for chocolate desserts by ordereing  3.6 million choco lava cakes and 2.27 million chocolate truffle cakes. The Hyderabadis kept ordering shahi tukda while Ludhiani-ites opted for block forest cake. Falooda was the favorite of the folks in Kozhikode and Kochi. Additionally, that Indians are mama’s boys and girls  was proved by the number of cakes they ordered for their mums on Mother’s Day: 193 cakes per minute, making it the country’s unofficial cake day. Diwali strangely was the day when surprisingly 11.4 million milk cakes were ordered. Milk cakes? And we thought Indian sweets like kaju katri and barfis were out favourites. Ganesh chathurti is the festival when Mumbaikar immerse their beloved Ganpati Bappa, but a modak sweet is a necessary accompaniment and Mumbaikars went for  it with full gusto ordering 2,26,393 of them.

    Biriyani reigns 

    One of the most interesting pieces of data that has emerged is that Indians love biriyani more than any other dish. Late into the night, growling bellies ordered 83 million biriyanis, making for 158 orders a minute or roughly two biriyanis a second. Ramzan accounted for six million of these orders. Biriyani orders rose 15 per cent, haleem rose 1445 per cent, phirni 85 per cent, malpua 79 per cent,  falooda 58 per cent and dates 48 per cent during the iftaar perod. 

    Which of the cities  hogged  the most of this spicy rice-potato-chicken-mutton-vegetarian meal? It’s not Hyderabad,  if that was your guess, it’s actually Chennai which placed 46 million biriyani orders in 2024,; Hyderabad the city of nawabs, the city which serves the best biriyani in India accounted for only  9.7 million of the orders, with Bengaluru coming in at third spot with 7.7 million orders.  

    Indians tend to prefer the chicken variety of biriyani with 49 million orders being for chicken biriyani. The figure for mutton biriyani is just a paltry 2.2 million. Remarkably, buzz of mouth regarding this dish resulted in 2.8 million newbies on the app choosing biriyani as their first order. 

    The How India Swiggy’d 2024 report also came up with some other interesting findings:

    * In a chicken-heavy lineup, the humble dosa stole the show! 23 million orders and counting—this is the true culinary hit.
    * Move over mammoth movie budgets in 2024! A single consumer in Bengaluru spent Rs 49,900 on a pasta extravaganza, devouring almost 55 Alfredo dishes, 40 mac & cheese, and 30 spaghetti plates.
    * How could we have a hero recap without the new and swanky Bolt? In Bikaner, a dessert lover’s sweet tooth couldn’t wait, and neither could Bolt! In just three minutes, a delivery partner zoomed in with a trio of frozen delights: chocochips, strawberry, and roasted almond ice-cream from NIC Ice creams.
    * Continuing the reign of the sweet tooth on Bolt, rasmalai and sitaphal ice cream topped the charts as the most-ordered delights to curb hunger pangs in 10 minutes.
    * Turning our gaze towards eats of the east…. Move over momos, because noodles are stealing the spotlight in Shillong! This city’s love for these slurpy strands is unmatched, making it the most ordered dish of 2024 in the city.
    *  Swiggy  delivery partners clocked an epic 1.96 billion kilometers, – that’s like driving the distance from Kashmir to Kanyakumari 533 thousand times and still  have a stop for chai! Kapil Kumar Pandey from Mumbai delivered an incredible 10,703 orders this year, while Kaleeswari M from Coimbatore led the female partners with 6,658 orders!

  • Performance marketing agency The Automobile group set up as 2025 dawns

    Performance marketing agency The Automobile group set up as 2025 dawns

    MUMBAI: When you are itching to leave your mark on the world, the best way to do so is to turn entrepreneur. Give to the winds your fears, and take the plunge. With resolution as your motto, go ahead and do it.

    And, what if you fail? Well, you get up and begin again! It’s not how many times you fall, but how many times you get up that makes you a success.

    At least, that’s what Shwetank Pandit and Yash Vardhan believe in and they have fulfilled that  belief by setting up a digital agency called The Automobile group.

    Its  focus: transform how automobile brands connect with their audiences. By partnering with leading auto aggregator platforms and leveraging targeted digital campaigns, the agency says it will  help auto companies to  drive visibility, engagement, and measurable results.

    “It’s a New Year. It’s a new era in automobile advertising,” said Yash on Linkedin.

    “Both Yash and I have been friends for 10 years or more. The agency is built on the foundation of that friendship that combines trust, passion, and innovation to create an AI-driven platform that delivers results,” added Shwetank.

    Both said that The Automobile group is “a first-of-its-kind performance network designed to revolutionise how automobile brands connect with buyers. In an industry where precision and impact are everything, we’re here to help brands accelerate their reach and drive measurable outcomes.”

    Their entrepreneurial initiative is based on such a solid idea and need that the duo found their initial investors within a month and they already have their first round money in their bank account. 

    The two have divided their co-founder responsibilities amongst  themselves: while Shwetank is charge of delivery, Yash has taken on the responsibility of the business.

    Shwentak has close to 18 year of learnings in the digital world having worked for Tangence Solutions, Tyroo, Cardekho, Kinesiz Media, and Convertup Media either in mobile advertising or on ad networks or in media sales and planning.

    Yash too has got his hands dirty in digital media with stints in Digifish3, SilverPush, Convival Cords, ConvertUp Media, Moca Technology and click2commission over his eight year career.

    Their well-rounded exposure to the RoI driven world of performance marketing is what gave them the confidence to cobble together their start up.

    Making a solid pitch to potential clients both Yash and Shwetank said: “As you (CMOs, digital marketing  heads and media agencies) gear up to make 2025 a breakthrough year for your brand, The Automobile group is your partner in driving growth. Whether you’re launching a new model, boosting brand awareness, or optimising digital campaigns, we’re here to turn your vision into reality.”

    Will the automobile marketers help turn Shwetank and Yash’s vision into reality?

  • What customers ordered on Zepto in 2024

    What customers ordered on Zepto in 2024

    MUMBAI: What did India order online in 2024? At what time did  they get shopping happy? Were there any quirky or weird things they ordered?  

    Quick commerce company Zepto gives us some insights into the shopping habits of India’s online consumers! Read on as some are sure to bring a smile to your face while others may get you to raise your eyebrows in alarm.

    * A Chennai user ensured preparedness, ordering 481 condoms in 2024.(Did he also order Viagra?)
    * A Hyderabad user’s 217 Eno packets were a spicy year’s MVP.
    * Chennai’s pet lover stocked up with 5,234 quantities of pet food.
    * In Kolkata, 96 packs of Tata Tea Gold kept someone caffeinated all year long.
    * Bengaluru’s curd enthusiast led with 5,544 pouches of curd ordered.
    * Gurugram’s spirituality shone, with 707 pooja essentials bought.
    * Pune’s health-conscious customer ordered 768 carrots.
    * Ghaziabad stayed cool, ordering 721 packets of ice.
    * And yes, 481 watermelons found a home in Chennai—summer forever?
    * 16,663 packs of Amul Masti kept spirits high.

    What Kept You Up at Night (and Beyond)
    * Over 20 million snacks were ordered between 12 AM and 4 am.
    * Bengaluru showed self-care with 28,000 massagers ordered. (Hmmm…too much sitting at the desk coding or is it something else?)
    * 85,000 stationery orders were placed late at night—midnight creativity, anyone?

     What were you searching for?
    o 6,000 searches for “friends” (we feel you).
    o 877 searches for “sukoon” (same).
    o 7 searches for “2 BHK” (you do you).
     

     Veggie vibes:
    o 900,000 karelas (bitter gourds), 130,000  lakh tindas, 7.7 million bhindis (okra), 2.3 million lauki, and 4 million baigans (egg plant) made their way to homes.

    Combos that Made Us Laugh:
    * Dumbbells + samosas: Strength and snacks in perfect balance.
    * Pooja essentials + tonic water: Holy spirit, indeed.
    * Food from Zepto Café + pressure cookers: Modern mealtime prep.
    * Knives + Dettol: Safety first.
    * Momos + chocolate syrup: A pairing no one saw coming.

    Fun Facts from the Cities We Love
    * Bengaluru: Ordered 825,000 roses and more than 400,000 condoms (What’s up with the city; are the techies’ hormones raging wild ?).
    * Delhi: Loved their snacks with 1.2 lakh millions Magic Masala and over 800,000  mixer bottles (No wonder the city has so many accidents).
    * Mumbai: Truly the city that never sleeps, ordering 3.15 million  snacks between 12–4 AM.
    * Our fastest delivery this year? 25 seconds.
    * Delivery partners travelled 340 million km in total—equal to 8,000  times around the  Earth.
    * Scott from Delhi was the highest tipper, with ?58,000 in tips!
    * And Ravi from Hyderabad? The king of indigestion relief, ordering 217 Eno bottles.

    It takes all types to make this world right? Even  when they order goodies! At least that’s what Zepto’s analysis of the shopping habits of Indians reveals. 

  • Streambox Media signs Blooprint Ecommerce Consulting for next thrust

    Streambox Media signs Blooprint Ecommerce Consulting for next thrust

    MUMBAI: When you are trying to disrupt the market, you have to get the best having your back. And that’s something Streambox Media founder Anuj Gandhi and Micromax Informatics founder Rahul Sharma believe in. The duo has launched the subscription-based Dor brand  of TVs which they are selling at extremely affordable prices. They began by porting their TVs for sale just on the Flipkart ecommerce site. The stock got sold out quickly. As did the next batch..

    Now they are getting ready to get Dor TV on to other ecommerce platforms like Amazon, and possibly going forward even on to TataCliq, AJio, Meesho, Croma and what have you.

    That’s probably why they have brought on board ecommerce growth catalyst BPECOM  Connsulting  (Blooprint Ecommerce Consulting) which is run by former Flipkart employees or Flipsters as they call themselves and founded by Prakash Maharaj and Ajay Maharaj.

    Blooprint Consulting  uses advanced analytics and industry insights to strategise in services such as building brands, customer shopping experience, merchandising, improving brand profitability, account management, category management, and digital marketing – basically the full Monty to help brands scale online on various platforms without investing in all the people to manage them. The company has worked with  brands like Urban Armor Gear, Kikgerm, Natures-Island, Raegr, among many others. 

    Says Prakash: “We can’t wait to bring our expertise in digital strategy and brand growth to help Dor TV amplify its online presence, engage a wider audience, and accelerate its journey to new heights. Excited to drive innovation together and redefine India’s entertainment landscape.”

  • Competition Commission clears Alphabet’s investment in Flipkart

    Competition Commission clears Alphabet’s investment in Flipkart

    MUMBAI: Indian ecommerce giant  Flipkart  -owned by  US retail major Walmart – has a new minority shareholder. India’s monopolies  and fair trade watchdog, the Competition Commission of India, on 26 November, gave the green signal to Alphabet’s subsidiary Shoreline International Holdings LLC to acquire a stake in it. Shoreline International Holdings is a wholly-owned offshoot  of Alphabet,  Google’s parent company. It is a holding firm and does not own or operate any Google products or services.

    “The proposed transaction comprises an investment through subscription of shares of Flipkart Pvt Ltd (Target) by Shoreline International Holdings LLC (acquirer) and an arrangement between an affiliate of the acquirer and the target’s subsidiary for the provision of certain services,” the regulator said in a release.

    Flipkart mainly  offers wholesale cash and carry operations and runs marketplace-based e-commerce platforms to facilitate trade between customers and sellers in India. 

    In 2023, Flipkart had started a funding round of close to a billion  Us dollars which included $350 million from Google and around $600 million from Walmart. The agreement with Google also included, according to reports, access to its cloud services which would allow it expand its digtal infrastructure further. With that its valuation had risen to $36 billion and it said it would use the money to expand into quick commerce and other fintech ventures.

    85 per cent owned by Walmart, Flipkart will probably move towards an IPO in the not-too-distant future, as it is something which the Binny Bansal and Sachin Bansal-founded firm has been thinking about for sometime. 

  • AnyMind Group launches AnyLive

    AnyMind Group launches AnyLive

    Mumbai: AnyMind Group has launched its GenAI-powered live commerce platform, AnyLive, designed to help businesses run live commerce in multiple languages without the constraints of time or location. The platform uses AI-generated virtual live streamers modeled to reflect a brand’s identity. These avatars can stream continuously, presenting products and driving sales in multiple languages, including English, Chinese, Bahasa Indonesia, Thai, Bahasa Malaysia, Vietnamese, and Tagalog, with more languages to come.

    AnyLive addresses the challenges of navigating language barriers, cultural nuances, and local regulations in the growing APAC e-commerce market. It automates live commerce processes, allowing businesses to overcome obstacles in cross-border expansion, talent shortages, and limited production spaces. The platform also leverages large-language models to generate live-stream scripts and automated responses.

    AnyLive integrates with major e-commerce and social media platforms like Amazon, Shopee, Lazada, TikTok Shop, Instagram, YouTube, Facebook, and X, enabling brands to reach broader audiences through simultaneous broadcasts. Additionally, AnyMind Group is building teams to provide operational support, including data-driven insights to optimise live streams, and offers access to its influencer marketing platform, AnyTag, to collaborate with human streamers for better engagement.

    AnyMind Group CEO & co-founder Kosuke Sogo said: “Southeast Asia’s e-commerce market presents a tremendous growth opportunity, not just for local brands but also for companies around the world. With the launch of AnyLive, we aim to offer an innovative approach to social commerce and digital marketing. By leveraging our advanced technology and the expertise of our teams across Southeast Asia, East Asia, India and the Middle East, we are committed to helping businesses establish a competitive edge in this dynamic market.”

    Early adopters of AnyLive have seen significant results. Sino-Pacific Trading (Thailand) Co, using AnyLive for Evian in Thailand, reduced costs by 90 per cent while increasing monthly streaming hours. Additionally, GenAI live streamers outperformed human streamers in GMV for Evian Nil Co’s Suna brand in Thailand and Malaysia, boosted live commerce sales, and provided valuable insights into viewership patterns. The company now plans to enhance its live commerce strategy by combining AI and human streamers.

  • Shopping on credit almost doubles this Diwali for e-commerce consumers: GoKwik report

    Shopping on credit almost doubles this Diwali for e-commerce consumers: GoKwik report

    Gurugram – Credit has almost doubled this festive season largely led by credit cards and buy now, pay later (BNPL) options for D2C brands on GoKwik’s network.  The preference for credit surged from 3.49 per cent to 6.9 per cent this year thus indicating healthy economic performance and increased consumer sentiment.

    This Diwali sale period shoppers showcased a higher preference for prepaid payment modes with a 13 per cent surge in prepaid orders compared to last year. On the contrary, cash on delivery (COD) orders saw an 8% dip in the same period, reveals GoKwik, India’s leading eCommerce enabler that helps brands improve profits and efficiency by reducing COD orders.

    COD (Cash on Delivery) is a payment method where customers pay upon receiving their goods. This can build trust with buyers wary of online payments, especially in areas with fraud concerns. While COD enables businesses to access a wider customer base in tier two and tier three regions, it can also cause cash flow delays, higher return rates, and increased logistical costs, potentially impacting profitability. However, COD in India still continues to be dominant at 46 per cent followed by UPI at 44 per cent.

    “Affordability has always been a key driver for eCommerce growth in India, with shoppers opting for more flexible payment choices. We’ve been focused on building an ecosystem that supports this innate need among Indian shoppers. By offering multiple prepaid options on our checkout, we have not only provided more affordable payment choices to shoppers, but also provided greater control to merchants over their growth. Having a higher prepaid share of orders helps brands mitigate the impact of return to origin (RTO) and enables profitable growth for them. Our efforts in this direction have started to show the much needed shift in consumer preference,” said GoKwik co-founder & CEO Chirag Taneja.

    Categories such as footwear and fashion have seen the highest preference for credit-based prepaid payments while certain other categories like beauty and personal care continued to show high preference for COD.

    Another interesting trend during this festive period is the shift in consumer preference from COD to credit payment options such as credit cards and BNPL in tier three cities.

    Easebuzz MD & CEO Rohit Prasad added, “We are happy to support GoKwik during this festive sale period. With an exceptional 99.9 per cent uptime, Easebuzz platform empowered D2C brands manage millions of transactions without any downtimes, a crucial advantage during peak shopping periods. Our extensive payment acceptance methods, affordability suite with BNPL & EMI options, coupons and rewards during checkout helped these brands deliver a superior shopping experience for their customers.”

    While overall Average Order Value (AOV) rose by a nominal three per cent during this period, categories like fashion and jewellery saw particularly strong growth at 15 per cent and 13 per cent respectively. Categories with high AOV products like electronics saw a 36 per cent increase in credit card payments and a 27 per cent increase in BNPL, showing that shoppers prefer these payment methods for high-value purchases. GoKwik houses over 10000 brands in its network including Lenskart, Neemans, Man Matters, Shoppers Stop, etc, ranging from fashion, beauty, health and nutrition, electronics and other key categories of the online shopping space. The e-commerce enabler houses over 120 million shoppers in its network of D2C brands.

  • Glance & Swiggy Instamart unite to speed up Q-commerce

    Glance & Swiggy Instamart unite to speed up Q-commerce

    Mumbai: Glance, a smart lock screen platform, and Swiggy Instamart, aquick commerce platform, have partnered to launch a one-tap purchase feature directly from Glance’s lock screens. This allows CPG brands on Swiggy Instamart to connect with over 230 million active users, simplifying the process from product discovery to purchase.

    With four out of five Android users in India interacting with Glance’s lock screen, the platform has become a key discovery point for brands. This partnership enables brands to reach users early, driving awareness and purchases with a single tap that redirects users to the product page on Swiggy Instamart.

    Glance uses Swiggy Instamart’s user data to create audience cohorts, targeting promotions more effectively. By combining Swiggy’s user preferences with Glance’s engagement data, this approach improves purchase intent and conversion rates.

    Five CPG brands have already used this feature, with one energy drink seeing a 20 per cent sales increase and a nutrition supplement brand recording a 10 per cent sales rise and seven per cent market share growth. Overall, brands experienced over 10 per cent sales growth, driven by both new and existing customers.

    InMobi consumer and performance advertising – CBO Vasuta Agarwal said, “We are excited to partner with Swiggy Instamart to transform the way India’s CPG brands drive growth on quick commerce. By integrating Glance’s premier screen presence, targeting capabilities and reach of over 230 million users with Swiggy Instamart’s quick commerce convenience, we are setting a new standard for brand engagement in today’s fast-paced digital landscape. With one-tap purchases directly from lock screens, we aim to empower CPG brands to connect with consumers in real-time, effortlessly turning intent into action.”

    Glance has deep integration with InMobi Exchange which allows Glance and Swiggy audiences to extend their advertising campaigns to mobile app users across around 30,000 apps in India. Homegrown InMobi Exchange is one of the biggest and most addressable mobile exchanges which allows brands to seamlessly extend their campaigns on other premium apps.

    Swiggy’s head of growth marketing Amitkumar Banka said, “Glance smart lock screen has proven to be a powerful first touchpoint for Android users, driving meaningful results for CPG brands on Swiggy Instamart. As Swiggy Instamart continues to grow, we’re excited to collaborate with Glance to engage users instantly, creating real-time connections that translate into tangible business results.”

    Swiggy’s director of growth Kashish Vasandani said, “This unique partnership between Glance and Swiggy allows brands on our platform to seamlessly reach their audience on either the lock screens of their smartphones or within 1000’s of other premium apps that consumers use via InMobi Exchange.”

    Glance and Swiggy Instamart aim to replicate the success of initial campaigns across hundreds of CPG brands converting everyday lock screen interactions into measurable business outcomes.

    Glance is an AI-driven platform that delivers a wide range of engaging experiences directly on Android lock screens, including games, entertainment, news, sports, and shopping, all available in seven Indian languages. By partnering with reputed publishers and developers, Glance’s AI curates premium content tailored to each user’s preferences. This allows users to access relevant information seamlessly, without unlocking their phones or navigating through multiple apps.

  • Reliance Retail Q2 net profit climbs 1.3 per cent to Rs 2,836 crore

    Reliance Retail Q2 net profit climbs 1.3 per cent to Rs 2,836 crore

    Mumbai: Reliance Retail Ventures Ltd has reported a modest increase in net profit for the second quarter of FY25, rising 1.3 per cent year-on-year to Rs 2,836 crore. However, the company faced a significant revenue decline of 3.5 per cent, with operating revenue falling to Rs 66,502 crore compared to Rs 68,937 crore in the same period last year.

    The results reflect ongoing challenges in the retail sector, particularly due to subdued consumer demand in the fashion and lifestyle segments. Despite these hurdles, Reliance Retail’s EBITDA rose slightly to Rs 5,850 crore from Rs 5,830 crore in Q2 of the previous year, with margins improving by 30 basis points.

    In a strategic move to bolster its market presence, Reliance Retail expanded aggressively by adding 464 new stores during the quarter, bringing its total to 18,946 across an operational area of 79.4 million square feet. Reliance Retail executive director, Isha Ambani emphasised the company’s commitment to innovation and customer engagement: “Reliance Retail continues to make investments in technology and infrastructure to build a strong foundation for future growth and maintain market leadership.”

    During the quarter, Reliance Retail strengthened its portfolio by forging exclusive partnerships with Delta Galil to expand in lingerie and activewear, while launching ASOS in India. AJIO expanded its product catalogue by over 25 percent year-over-year, adding 1.8 million customers and introducing brands like H&M and Timberland. The youth-focused Yousta format surpassed 50 stores within a year, and Ajio Luxe saw a 28 percent increase in options, with its brand count exceeding 725.

    JioMart’s growth extended across categories, with non-grocery segments, especially consumer electronics, driving a twofold increase in average order value. The jewellery segment launched nine new collections, contributing to higher average bill values, while the grocery business maintained steady growth, led by Smart Bazaar and Smart stores. The company also scaled up quick commerce through its store network, expanded the services business to 150 cities, and launched its first Armani Café as part of the premium brands initiative.

    The merchant base for the company’s private label doubled, and the seller base grew by 46 percent, further expanding the product catalogue.

    Foot traffic across all store formats surged by 14.2 per cent year-on-year, reaching over 297 million visits. The digital commerce segment also performed well, contributing 17 per cent of total revenue as Reliance Retail adapts to evolving consumer preferences.

    Chairman Mukesh D. Ambani remarked on the company’s strategic direction: “The unique omni-channel retail model enables the business to service a wide range of requirements of a vast, heterogenous customer base.” 

  • How AI and automation are transforming e-commerce logistics

    How AI and automation are transforming e-commerce logistics

    E-commerce is altering the future of businesses by offering consumers ease of access, be it goods, services or information. While e-commerce means the simple buying and selling of products and services over the Internet, its success relies on the complexities of accuracy and timely delivery. And, e-commerce logistics handle just that!

    Logistics in e-commerce consists of the steps of sourcing products from sellers to buyers when consumers shop online. It involves tasks such as keeping a check of inventory, storing products, packaging them for shipment, placing labels on them, generating bills, arranging delivery, securing payments, and managing returns when required. For this reason, effective logistics powered by AI guarantee that the products promised to customers reach them securely.

    Market overview

    As of 2023, the global e-commerce logistics market size reached $431.6 billion. Looking ahead, it is expected to reach $1,437.9 billion by 2032, showcasing a growth rate (CAGR) of 13.9 per cent during 2024-2032, according to a report by the IMARC Group. These statistics indicate the growing demand for rapid and reliable shipping services.

    In such a fast-shifting domain, AI and automation are steadily replacing conventional processes. Its algorithms are designed to boost last-mile delivery efficiency by mitigating costs. AI is particularly apt for logistics thanks to its ability to forecast future production and conveyance volumes, leading to more efficient resource utilisation. By enabling this, industries can bring forth a synergy and improve customer experience.

    A step towards AI

    AI is forging a change in e-commerce logistics too by spearheading the adoption of advanced technologies. It modernises operations and improves the customer experience via an array of tasks such as the fulfillment of orders, shipment tracking, route optimisation, data analysis, etc. Notably, the global AI market size was estimated at USD 196.63 billion in 2023 and is projected to grow at a CAGR of 36.6 per cent from 2024 to 2030, as per Grand View Research.

    From the initial ordering to the final delivery, AI’s speed, capability and processes cater to the convenience of consumers. AI assists in predicting the demand for new products, raising inventory levels, and streamlining processes. An AI-led warehouse management system powers order processing tasks such as picking, packaging, and shipping, reducing manual labour and the possibility of errors. When put in place, it allows workers to focus on tasks involving higher mental ability and intelligence.

    Additionally, route optimisation for delivery efficiency becomes simplified with AI. It tracks products in real-time, monitors parcels, and enhances shipping routes. Such optimisation reduces delivery time and saves fuel costs. Alongside, AI-powered voice assistants aid users in interacting with e-commerce platforms, solving product queries and expediting purchases. When it comes to feedback, AI comes into the picture by reading through messages, complaints and queries. Besides, AI-driven systems simplify returns management by automating processes, marking returned items, and defining their further treatment. It ensures these items are sent back to the warehouse via appropriate routes in a secure manner. With the help of AI, industries have a chance to take the sustainability route and recommend sustainable practices by analysing data and identifying areas where resource consumption can be lessened.

    AI can also make significant strides in providing tailored recommendations for customers. It can be put in place to create refined recommendation systems that analyse customers’ buying history, browsing habits, and consumption patterns. Such will empower e-commerce players to enable a quick shopping experience for their users.  

    The way forward

    As AI and automation continue to evolve, it will support e-shops, courier companies, and third-party logistics firms alike. Moreover, AI will enhance the speed at which goods are delivered across borders. Powered by AI, systems will be able to ensure that products are available and set to dispatch as soon as an order is placed.

    However, trials for the successful integration of AI in businesses will persist such as the cost of implementation and skilling of labour. Therefore, e-commerce businesses must have a comprehensive logistics process to meet customer expectations and enjoy a competitive edge. It is advised to them to be up-to-date with the recent AI advancements and automation to enhance capabilities locally and globally.

    This article has been authored by Fship Logistics CBO Raju Sinha.