E-comm Retail Logistics Market Projected At $6.3 Bn By FY26: Report

The e-commerce retail logistics market is expected to grow at a 24 per cent CAGR to $6.3 billion in FY26, up from 2.2 billion in FY21, a report by research firm PGA Labs said.

The growth will be primarily driven by the e-commerce retail market — expected to reach approximately $145 billion by FY26, with about 15 million daily shipments.

“The online-focused players partner with third-party logistics (3PL) providers to manage delivery, inventory, packaging, shipping, warehousing, and tracking issues,” said Abhishek Maiti, director, PGA Labs.

The report came on a day Ecom Express, the logistics solutions provider to the e-commerce industry, said it will onboard more than 50,000 delivery partners by the end of September this year under its flagship programme ‘Ecom Sanjeev’.

The PGA report revealed that nearly all pin codes in India are seeing e-commerce adoption with many orders coming from tier-II cities and smaller towns.

$2.2 bn Size of Indian e-commerce retail logistics in FY21

• $6.3 bn Projected size in FY26

• $145 bn Expected size of e-commerce retail market by Fy26, with about 15 million daily shipments

• 60% e-commerce logistics market is outsourced, providing headroom to specialised logistics service providers and consolidators

• 46% shipments in tier-2 & towns in CY20, up from 25% in CY15

• 859 million Total number of consumers using smartphone by 2022-end

• 18-25% Current return rate for overall e-com retail, driving up the logistics cost

Source: PGA Labs

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