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E-commerce ‘Sale Days’ Create Havoc for Logistics Players

(Itika Sharma Punit & Anita Babu – Business Standard)

Running deep discounts on dedicated ‘sale days’ may have turned out to be a big success for Indian e-commerce players, but logistic and courier companies that support online retailers are left in a limbo with an ‘unstable and inconsistent’ business inflow because of these events.

According to senior officials at several logistics companies that cater to online retailers like Flipkart, Amazon, Snapdeal and Myntra, there are sudden spikes in demand from e-commerce companies during the two weeks after a sale day, when they want thousands of packages to be delivered within the time frame that they have promised to the consumers. On other days, the demand is much lower compared to the sale days.

“The entire e-commerce game is being played on sale days that lead to sudden spikes in orders. During these days, they (e-commerce companies) want us to deliver thousands of packages to the most remote destinations within a couple of days, because that’s what they have promised to their buyers,” the head of a leading e-commerce logistics company said requesting anonymity. Click here to read more.