India comes alive with the warmth of tradition and the joy of giving during Diwali. Woven into these celebrations is a vibrant market hub that ushers in an abundance of opportunities for India’s burgeoning e-commerce industry.
The traditional festivities, coupled with the modern-day charm of online shopping, create a dynamic and thriving environment that propels the e-commerce sector to new heights.
Shiprocket, an ecommerce enablement platform, estimates that the Indian ecommerce opportunity during this year’s festive season is worth $13 billion. What’s even more intriguing is that a substantial 56% of Shiprocket’s order volume originates from non-metro cities, emphasising the extensive possibilities for India’s Micro, Small, and Medium Enterprises (MSMEs).
The allure of exclusive deals, the convenience of shopping online, and the changing dynamics of consumer behaviour have collectively contributed to this meteoric rise. It’s not just about shopping; it’s about the harmonious blend of tradition and modernity, offering e-commerce businesses an exceptional opportunity to thrive while addressing the evolving needs of their customers.
Strategy consulting firm Redseer’s report reveals that the GMV (Gross Merchandise Value) for the entire festive month of India’s eTailing in 2023 will reach approximately Rs 90,000 crores, marking an impressive 18-20% growth compared to the previous year’s festive month sales.
Amid the immense opportunities, logistics is the linchpin that ensures a seamless shopping experience for customers.
As anticipation for Diwali 2023 builds, Shiprocket is gearing up for ‘Sabse Badi Diwali’ (the grandest Diwali) by implementing an inclusive approach that touches every aspect of an ecommerce seller’s journey.
All set for Diwali
Shiprocket has gone the extra mile to ensure that shipping remains swift and efficient during Diwali.
Atul Mehta, Chief Operating Officer, Shiprocket, tells YourStory that one of their key initiatives this festive season is capacity blocking with their partners for Shiprocket shipments. This involves meticulous lane-level planning of volume and capacity to optimise every link in the supply chain.
“This proactive measure ensures that shipping capacity is reserved, reducing the chances of delays and ensuring a smooth flow of packages. The courier recommendation engine, which helps merchants select the right courier partner basis multiple data points, has been made smarter with daily refresh to data to make the recommendation as real time as possible. Additionally, we have set up a Festive Control centre which is regularly monitoring last mile performance, to identify stress points and reallocate shipments across partners, effectively optimising the delivery process,” he says.
In its quest for excellence, the logistics aggregator has empowered over 2500+ stores across 40+ brands for store fulfillment, a move designed to accelerate deliveries, benefitting both customers and ecommerce businesses. Its fulfillment centres which are across the country, now offer same-day delivery within the city and next-day delivery for inter-city orders like from Delhi to Jaipur, Chandigarh, and even Delhi to Mumbai.
Shiprocket’s extensive courier network, spanning 24,000+ pin codes and featuring more than 25 courier partners, brings even the most remote areas within reach for ecommerce businesses.
Warehouse expansion is another significant facet of the preparations. Mehta says the company has doubled warehousing space, now totaling 2 million square feet. Additionally, three state-of-the-art warehouses have been added, taking the total to 42+ warehouses. This expansion is complemented by a 50% increase in the workforce to ensure efficient order processing and fulfillment, even during the peak of the festive season.
Recognising the need for streamlined, quick checkouts, a new product – Shiprocket Checkout – has been introduced. It offers a one-click checkout, facilitating rapid transactions in under 60 seconds. “An aggressive checkout scaling strategy can consistently boost conversion rates by 20% where buyers are making multiple purchases and are looking to complete the transaction quickly,” Mehta says.
One of the pressing concerns for ecommerce businesses, particularly during Diwali, is Return To Origin (RTO). The company addresses this issue with proactive solutions, including order confirmation, address verification, and the conversion of Cash-On-Delivery (COD) orders into prepaid transactions. RTO can be significantly reduced, up to 45%, by engaging with customers in this way.
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Beyond Logistics
Shiprocket’s Diwali 2023 preparations extend beyond the logistics network, and its commitment to empowering ecommerce businesses is evident.
Mehta explains how they realised that accelerating growth beyond shipping remained a significant challenge for most merchants. To address this, they launched two key offerings based on the core principles of accessibility and simplicity, aiming to make previously inaccessible capabilities available to their 70,000+ customers, particularly small and medium-sized sellers.
First was the ONDC Seller app that enabled thousands of merchants to effortlessly list their catalogues on ONDC, tapping into an incremental demand network. Their second and latest offering is Shiprocket Amplify, created to help small businesses leverage influencer marketing to reach thousands of potential customers. The product simplifies influencer marketing with flexible plans, gives access to a vast network of over 7 million influencers, has a seamless integration within the Shiprocket ecosystem, and gives the ability to tailor marketing strategies for brands and products.
“With incentives for new and repeat merchants and products like the ONDC seller app and Shiprocket Amplify, we are enabling our merchants to generate more orders this festive season,” Mehta says.
Along with that, the company is also offering revenue-based financing of up to Rs 5 crore to ecommerce businesses registered with it, providing a financial lifeline that helps businesses overcome capital limitations and make the most of the festive boom.
Emphasising Shiprocket’s strong commitment to customer experience, Mehta says,
“We have majorly upgraded our customer experience (CX) products, Shiprocket Engage and Brand Boost, that go beyond shipping and help elevate a buyer’s experience. Increased adoption of these products will ensure millions of buyers are always updated about their shipment through channels like Whatsapp.”
Apart from ensuring efficient logistics, Shiprocket also provides packaging that is personalised and thoughtful. They have recently launched a new feature called ‘Gifted By’. Through this feature, sellers can display the sender’s name on their package, prefixed with ‘Gifted by’. Such attention to detail adds an extra layer of delight to the customer’s journey, making each unboxing moment truly special.
As Diwali draws near, Shiprocket’s meticulous preparations and forward-thinking initiatives pave the way for a festive logistics journey that promises not just to meet but exceed expectations.
