Daily shipment of e-commerce goods may increase by 20% in the current year

26 Jul 2022 , 09:18 AM

Following several peaks and valleys since the start of the Covid-19 outbreak in India, leading industry executives and experts told ET that consumption growth is moderating across categories, particularly sectors seen as discretionary.

PGA Labs, a market research company, predicts that daily shipments for e-commerce will increase by 20% yearly during the current fiscal year. This is a lower rate of annual growth than the previous two fiscal years when the e-commerce sector encountered lockdown-related challenges yet experienced at least a 25—30% annual growth due to greater shopper migration to online platforms following the virus outbreak.

Even if discounts are bigger this year compared to non-sale days, merchants, e-commerce, and logistics experts claim that the ongoing Prime Day sale event on Amazon India and comparable sales on Flipkart haven’t experienced a significant increase over the previous year.
Large fast-moving consumer goods (FMCG) corporations have also expressed concern about declining volumes as these trends arise. Sanjiv Mehta, the managing director of Hindustan Unilever Ltd (HUL), told ET last week that the company has experienced volume declines and that inflation has made things more stressful.

According to news reports, mobile phones, which make up a significant portion of sales for e-commerce businesses, have been the most negatively impacted and the sector has slowed overall growth.

Even while macroeconomic shifts have made BNPL startups wary about loan recoveries, many are still awaiting the central bank’s final lending criteria before completely pausing their operations.

According to PGA Labs’ analysis of the Indian e-commerce logistics business, which is anticipated to expand to a size of $145 billion by FY26 and has over 15 million daily shipments, will be the primary driver of growth.