What is Bharat Commerce? How can Logistics Play a Role in its Evolution?
In the year 2020, some of the biggest and the smallest eCommerce companies have been able to achieve one thing spectacularly – providing a proper channel of logistics for Tier 1 and 2 cities. The connectivity in these pin codes is quite solid and hence, almost any product has the capacity to be delivered, with the additional benefits of reverse logistics and COD-enabled checkouts.
In the meanwhile, in Tier 3 and 4 cities, the connectivity network created in these areas by eCommerce companies is not up to the par. Indiapost is the only suitable option left to attend to these pin codes. Hence, two things are happening here at the same time –
- A large section of the society is not availing the facilities of efficient last-mile deliveries due to a improper logistics management
- eCommerce companies are not being able to exercise their capacities in these remote/unequipped areas
However, before we move on any further, let us understand what Bharat Commerce is exactly.
There has come a difference between India and Bharat pertaining to eCommerce and logistics. Where India is being served by the giants like Amazon, Flipkart, Snapdeal etc. – Bharat is still managing to get equipped with conducive logistics connectivity.
The million dollar question arises – why does Bharat (pertaining to logistics and eCommerce) get to be the recipient of such poor logistics services ? Well, this is probably due to a significantly low order volume, which makes the process of running an eCommerce business a very unprofitable undertaking.
Journey to Bharat Commerce – The How
Nevertheless, if there seem to be problems arising in the arena of Bharat Commerce, there must also be solutions around it too. And Team Shiprocket Social has come up with a few ways to ensure logistics efficiency in Bharat Commerce. Check them out –
- Kirana Stores
One way toward smart logistics is to appoint these small grocery stores (kirana stores) as points of collection eCommerce companies, from where the delivery partner can pick up shipments/scheduled orders. This way is helpful in closing the distance between the buyer and the seller for successful last-mile deliveries. The lesser the gap/distance between the buyer and the seller, the easier it would be for the delivery partner to deliver the scheduled shipment at the doorstep of the customer.
- Customer to Customer Commerce (C2C Commerce)
This variety of eCommerce deliveries are put into action by appointing a single point of contact for order collection, or a chosen hub for collection of shipments. Customers/buyers are asked to personally come to the chosen point of collection and take their scheduled shipment from that place itself. This logistics improvement method eliminates the need for a delivery boy to deliver products door to door, coordinate with the customers about their availability during the time of delivery and saves last-mile delivery costs, as well.
- Off-the-Ground Innovation
Logistics will be refined and improved on two mediums in the near future – on-the-field and off-the-field. The above-mentioned two methods are mostly on-the field methods. When speaking of off-the-ground innovation, only technology and data come to the mind. Any logistics company that will be able to execute proper route planning and optimize data for their sellers and coordinate the GPS with more pin codes in the Tier 3 and 4 regions – will have a big hand in the evolution of Bharat Commerce.
- 3PL Establishments
Third party logistics companies can be very helpful in improving Bharat Commerce situation. With their advanced technology and data-equipped systems, these organizations can bring together multiple regional courier companies under one platform and provide their delivery services to the sellers. Existence of multiple regional partners under one platform will expand the bouquet of pin codes for the seller, who will eventually be able to deliver to Tier 3 and 4 cities.
- Demand Generation
One of the main reasons for a low order volume in Tier 3 and 4 cities is also due to low demand. People don’t have enough knowledge pertaining to ordering online, the benefits of eCommerce deliveries and the importance of a proper logistics network in their area. Education related to these subjects needs to be spread effectively to these areas, so that people will start ordering online more for all kinds of needs – whether essential or non-essential.
And that’s about it for now! Bharat Commerce sure has a long way of getting to where the India eCommerce in Tier 1 and 2 cities has already reached. However, what we’re seeing right now is the penetration of logistics and eCommerce in Tier 3 and 4 areas and these institutions will find success doing that in the next few years to come.