E-commerce logistics could take Rs 1,500 cr hit during lockdown, says Clickpost

The Indian e-commerce logistics industry could be staring at Rs 1,500 crore in losses due to the nationwide 21-day lockdown, according to integrated logistics platform, Clickpost. These estimates come amid uncertainty over whether or not the lockdown will end on April 14.

“The logistics side of the e-commerce business faces a revenue loss of Rs 1,500 crore during the lockdown,” Pranchu Kacholia, Vice President (Business), Clickpost told CNBC-TV18.

“We’ve arrived at this fiscal hit by estimating that it would be in the range of seven million shipments multiplied by 21 days and an average of Rs 100 per shipment,” he added.

The fiscal hit, however, may not be the only challenge for e-commerce logistics businesses. According to Clickpost, the industry could take an entire week to fulfill delivery of goods already ordered, and see a spike in the percentage of stuck shipments.

The good news, however, is that the industry is slowly getting back on its feet.

“Post-lockdown, stuck shipment percent should be around 5 to 6, compared to less than 1 percent as of today. We saw delivery of essential goods go up to 58 percent on April 6, compared to 35 percent on March 31. So there is a trend indicating that things could stabilize on the logistics front,” Kacholia said.

A report released by Clickpost and Shadowfax said that the sale of pharma and beauty products on e-commerce websites rose 12 percent and 6 percent, respectively, between March 10 and 20 (before the lockdown began on March 24), compared to the previous month. Demand for apparel was down by 15 percent across websites, while electronics saw a 4 percent rise.

However, increasing uncertainty over the COVID-19 situation in India has caused stuck shipments and order delays to rise 9 and 21 percent, respectively.

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