Electronic Retailing Expected to Multiply Fivefold, Reaching $300 Billion by 2030: Redseer Report

• ByStartupStory     |    October 4, 2023

Electronic retailing (e-tailing) in India is poised for remarkable growth, projected to surge from $59 billion in 2022 to a staggering $300 billion by 2030. This significant expansion is anticipated to be driven by the ‘mass’ consumer segment, known for seeking value and affordability, as revealed in a report by Redseer Strategy Consultants.

The report further outlines expectations of substantial growth, with third-party logistics (3PL) shipments estimated to increase between six to eight times, soaring from 2 billion in 2022 to an impressive 13 billion to 17 billion by 2030. The surge in shipment volumes can be attributed to several key factors, including the wider adoption of e-commerce in Tier II and beyond cities, the growing number of mass consumers, and enhanced 3PL serviceability. Consequently, shipment volumes are poised to outpace the growth in Gross Merchandise Value (GMV).

During the period of January to August this year, Meesho emerged as the leading contributor to e-commerce 3PL shipments in India, based on the average share of shipments. Other prominent players in this space include Flipkart, Ajio, and Amazon. Vertical e-commerce platforms, direct-to-consumer (D2C) brands, and smaller e-tailers also contributed to the overall shipment volumes.

Mohit Rana, Partner at Redseer Strategy Consultants said, “3PL has emerged as an indispensable enabler for mass-focused horizontals, large verticals and direct-to-consumer (D2C) brands. Collaborating with 3PL for logistics requirements expedites market entry, drives growth, and addresses the challenges of lumpy demand, thereby optimizing logistics investments per shipped unit.”

As 3PL services continue to scale, the cost per shipment is projected to decline from Rs 60 in 2023 to Rs 47 by 2030. The report attributes this cost-saving trend to factors such as demand aggregation in smaller cities and policy adjustments, which enable efficient resource utilization.

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