Are all the products delivered by Amazon / Flipkart made in India?
How does the process of making the product reach to consumer work?
The logistics are a market that deals with the activity that delivers product from the seller/ manufacturers to the end-users. There are many factors and players that make this whole easy and smooth.
In 2020 India’s GDP was expected to reach 3.02 trillion which is 4% of the global GDP. Support from the government reforms and improvement in the transportation sector and rapid growth in retail sales and an increase in eCommerce is helping the logistics industry in India.
Online freight platforms and aggregators are on the rise in the Indian logistics market. The logistics market in India is forecasted to grow at a CAGR of 10.5% between 2019 and 2025. (Source: Research and Markets)
Today the e-commerce market is something that people are going to. Online retail sales in India is expected to grow 31 per cent to touch US$ 32.70 billion in 2018. This is a very huge growth and it will keep on growing. Because of the 2020 pandemic, there is a huge increase in the online retail sale as it is more convenient and it provides more services.
Now the questions arise is how it becomes possible for the eCommerce to make the goods available for the customer and to make sure that the consumers get their products.
This happens because of a great logistics system.
Let us talk about Flipkart’s “Big Billion Days” and Amazon’s “Great Indian Festival”. These are the two biggest sales of the Indian e-commerce market. In order to meet the demand of the customers a very huge workflow is required.
There are more than 10,000 products which are on sale at the time of these sale. Firms like Flipkart and Amazon doesn’t have their own warehouse. They outsource the sales order to the local vendors and then that vendor packs and delivers the product to the consumer. Any local vendor can list their product on these sites. The product is then listed on the site for the customers. Once the site gets the order for that product, the information is then transferred to the vendor and then vendor packs and delivers the product to the customer with the help of the delivery providers like Delhivery, and DTDC.
The vendors import the products from the manufacturer. It may not be certain that the manufacturer is a local one. The manufacturer can be in China or Korea or may even be from the Gulf. In order to make the import-export work easy and hassle-free for the vendor's, freight forwarders like boxnbiz comes forward. They help the importers and exporters in transferring the goods from the manufacturers to the retailers.
Freight forwarders have an integrated technology where consignment is connected (via API or some other connection) with the Management system so that the importers / exporters get the exact price quote of shipping. This price is determined on the type of the load that the importer / exporter want. The load type includes LCL (Less than Container Load) and FCL (Full Container Load) . Once the exporter / importer selects the load type and final price they then have to select the incoterms, only after this the final order is made. Once the order is made the freight forwarders work according to the selected incoterms.
The digital Integrated system helps in:
The Online Freight forwarder helps the importer / exporter in:
Once the vendor receives the products then they list their products on the E-Commerce sites like Flipkart and Amazon. The E-commerce site list those products on their site for the customers. Once the customer places order for the product then that information is transferred back to the vendor along with the address and information of the consumer. the vendor then packs and transfers the good with the help of local delivery firms like delhivery. Finally, the customer gets the good which he ordered for.