Which Kart is Flip(Kart)?

(^^I hope you got the pun there!)

Hey, guys! We’ve all ordered something or the other from e-commerce biggies like Amazon, eBay, Flipkart (if not something else then, at least Debraj Ray). So whenever you’ve ordered something online, I’m sure you’ve waited eagerly for it to come, because I definitely have!

Today’s post is about the distribution channel of these e-commerce firms. Hope you like it! (Please comment if you do!)

THE DISTRIBUTION CHANNEL

To begin with, we need to know how e-commerce distribution system works.

In the early days of e-commerce, it was about the convenience of ordering a product from home. No driving to the mall and no waiting in line, just living life (except at NMIMS, maybe) and waiting for the package to be delivered to your doorstep. Shippers used snail mail (slow postal delivery) and phone calls to communicate with customers and order delivery times were in time periods of weeks, not days. Free shipping quickly became a tool that intensified competition, since there weren’t many carrier options and purchased items were only distributed via a postal, parcel or freight network.

In e-commerce lingo, an e-fulfillment center is a warehouse at which merchandise is stocked and picked at item level. Today, there are numerous e-fulfillment centers, which are operated by the retailer or a logistics service provider like eKart for Flipkart. A parcel hub center is where orders are sorted by zip or postal code, so they can be delivered to the relevant parcel delivery center for final delivery to the customer’s home or designated collection point. Parcel delivery centers handle the ‘last mile’ delivery to the customer. E-commerce poses the unique challenge of inventory arriving in bulk, but requires more care from then on – receiving bulk orders, then inventorying and picking those as individual products (there are robots that pick inventory and move it around the warehouse!).

Often, with dozens of suppliers, multiple warehouses, and an extensive number of sales channels, the chances of a misplaced order are much higher. Other than giants like Amazon, not many retailers have the resources to operate multiple distribution centers in strategic locations and instead are turning to third party logistics service providers to reach their customers. The evolution of multiple shipping options allows customers more control over the delivery process than ever before. Flipkart’s Delivery-In-A-Day & even on the next day are testament to this. It’s no longer about being the fastest rat in the e-commerce delivery race. Instead, it is about being able to deliver an order at a time frame and price point that customers want.

“Not very long ago, the e-tailing channel accounted for only about five per cent of industry sales. Thanks to these flash sales by e-commerce majors, their customer base has increased. According to our assessment, the e-tailing channel today constitutes 15-20 per cent of industry sales,” said Amit Chadha.

The next post will be uploaded soon.

– Simran Bhatia 🙂