SURGE OF E-COMMERCE LOGISTIC COMPANIES AMIDST THE PANDEMIC

E-commerce companies are a blessing for people who wish to make purchases but do not want to leave the comfort of their homes. With the recent advancements in the IT sector, Bangladesh is gradually moving towards a digital-based future and one important component of such a future is the emergence of e-commerce logistic companies to help e-commerce businesses deliver their products to their customers. E-commerce online shopping websites have received a huge response from Bangladeshi users over the years. These sites have made it possible for consumers to purchase their desired products from their homes with a few clicks and in the process have turned the shopping experience into a smooth and effective process.
As the e-commerce industry flourishes, Logistics Service Providers (LSP) emerge in order to cater to the specific delivery needs created by e-commerce businesses. Emerging technologies in the modern world have made it possible for people to enjoy fast and efficient deliveries and an e-commerce centric logistics system is a vital factor when it comes to providing such services. A fully functioning e-commerce logistics company provides value added services such as packaging, order pickup, warehousing, online tracking and database management for their e-commerce partners. An e-commerce logistics player might provide all or some of these services.

The E-Commerce and E-Commerce Logistics
E-commerce has evolved in Bangladesh as a result of the digital revolution. The journey of internet commerce in Bangladesh began in the early 2000s and achieved significant momentum after 2009 when platforms such as Ajkerdeal, Rokomari and Akhoni (now Bagdoom) entered into the market. Bangladeshi consumers, backed by increasing disposable income and better access to technology, are rapidly adapting to buying products over the internet.
At present, 500 e-commerce and 2,000 f-commerce (i.e., companies that operate through Facebook pages only) companies are registered under E-CAB and none of them has the capability to run its own fleet. As a result, they have adapted to different delivery models to fit their specific needs. The e-commerce sites are growing at a steeping rate however are yet to see a Bangladeshi e-commerce player that owns a full-fledged logistics wing which is able to provide a full range of delivery services. The criteria of logistic services are,

E-commerce Logistics Companies amidst Covid-19
During the pandemic, the e-commerce industry has experienced an unprecedented growth in the number of orders received as a result of an increasing number of people moving to digital platforms to make purchases. The driving force behind the massive growth is the convenience of being able to make purchases from the comfort of one’s home. Shopping using such platforms instead of going out to physically purchase the products also reduces the risk of infection. This has led to a 50 percent spike in home deliveries amidst the pandemic, according to industry insiders.
E-commerce logistics companies catering to online businesses in Bangladesh have prospered during the pandemic as more and more people shifted to purchasing products online. They were able to capitalize on the need for social distancing by delivering desired products to consumers from the markets to their doorsteps.

Major Players in the Industry
Some major players in the e-commerce logistics industry of Bangladesh are Pathao, eCourier, RedX and Paperfly.

eCourier: eCourier is a bicycle based courier service in Dhaka, Bangladesh. The company offers services to deliver documents, files and small parcels for their clients. The company has recently launched an array of services to help speed up its deliveries across the country and this included their new ‘air parcel’ which is basically a parcel delivery service by air.

Paperfly: Paperfly is Bangladesh’s first true homegrown logistic-tech venture. The company claims to have the widest reach and it is now concentrating on building the strongest door-to-door delivery coverage nationwide so that it can serve every corner of the country.

Pathao: Pathao is an online platform for booking lastmile delivery and ride-sharing services. Its app allows users to request rides as well as the pickup and delivery of packages, food or personal items like documents.

RedX: RedX Delivery is a logistics company that aims to aid Bangladesh’s expanding e-commerce sector by providing tech-first delivery support. The Managing Director of Daraz recently presented RedX with the game changer award as a form of recognition for providing the company with the utmost support in delivering products to urban and rural areas during the pandemic.

The Future of E-commerce Logistics
In recent years, omni-channel retailing has been gaining popularity in Bangladesh creating a demand for sound logistics system in the second and third mile. Traditional logistics companies have the combination of expertise, experience and vision, but they lack in tech-enabled services such as tracking of order, automated fulfilling and return management etc. E-commerce centric logistics start-ups have technology incorporated services better suited for online retailers. To be able to take advantage of the true potential of the growing e-commerce industry, industry players must invest in smart logistics ecosystem to ensure fast and smooth delivery of online orders.