Logistics market increasing because of e-commerce

While the impact of the e-commerce boom has been felt in a dramatic way in the retail world, there are other sectors where this has also been the case. One of the most noticeable has been in the shipping and logistics arena.

Most products that are purchased online need to make their way to the homes of the consumers. For businesses venturing into the online landscape for the first time, handling the transactions and managing the supply chain and deliveries can be a monumental undertaking.

Because of this, according to an article from the Financial Chronicle, many third party logistics providers have been experiencing a boom.

"The demand for logistics is growing along with e-commerce. However, 80 percent of the logistics needs are currently taken care of by the e-commerce companies themselves and only the remaining 20 percent comes to the kitty of specialized logistics companies. This will change in the coming years as the e-commerce companies start making profits," said Chander Agarwal, joint managing director, Transport Corporation of India.

Deepak Baid, the director of Siddhivinayak Logistics, added that revenue from logistics because of e-commerce has grown at a rate of 25 percent annually. This is because the shipping landscape plays a major role when it comes to the success of online shopping when you take timely delivery into account. 

There is a lot that happened after a consumer on your website clicks on the "checkout button." Each process needs to be running on all cylinders, and with the help of quality outsourcing providers, any company can be prepared.