Meesho accounts for ~35% of national third-party logistics shipments, emerges as the single largest contributor: Meesho, India’s fastest-growing internet commerce company, has emerged as the single largest contributor to the country’s expanding third-party logistics (3PL) industry.
Meesho, which runs an asset-light model, counts Shadowfax, Ecom Express, Delhivery and Xpressbees among its key 3PL partners. Meesho’s rapidly growing scale has been a key driver behind the expansion of the 3PL sector. Average daily orders on Meesho have risen nearly five-fold YoY to 2.4 million in January-March 2022.
“Meesho’s shipments reach all of pin codes in India, a feat we have been able to achieve by working closely with our 3PL partners. Our asset-light model enables us to realise supply chain efficiencies, bringing down costs for the end-user. On our mission to further democratize Internet commerce, we are looking to build on the momentum of previous quarters. Additionally, we are humbled by the economic opportunities in the form of jobs we have been able to generate at our 3PL partners,” Sourabh Pandey, CXO – Fulfillment & Experience, Meesho, said.
Volumes in India’s 3PL industry typically peak during the festive season, in line with the seasonality observed in e-commerce. However, Meesho continued to grow its 3PL shipments by 16% in January-March on the already high base of the previous quarter (October-December 2021).
“As the leading multicategory digital commerce logistics platform in the country, Shadowfax is rapidly growing its e-commerce 3PL business. Meesho has been a key strategic partner and catalyst for this growth. In the current quarter, approximately 60% of our drop ship e-commerce volume is being contributed by Meesho – a testament to our deep and long standing relationship. The momentum will only keep increasing as E-commerce adoption continues to rise in tier 2+ regions in the future.” – Abhishek Bansal, CEO & Co-Founder – Shadowfax, said
Outsourcing logistics to a 3PL provider is cost-effective, gives access to cutting-edge transportation solutions, and enhances scalability, flexibility, and customer satisfaction. Most importantly, it allows companies to focus on their core competencies. At the same time, the increasing popularity of 3PL services has generated thousands of jobs for the country’s blue-collar workforce. In just 2 years, over 55,000 on-roll and off-roll jobs across first-mile, sortation, and last-mile delivery were generated by our key 3PL partners, a significant chunk of the overall employment opportunities created by the ecosystem.
“Asset light business models have been growing among new-age digital and e-commerce platforms, which has paved the way for their efficiency while playing a pivotal role in accelerating the growth of the 3PL eco-system. Since its inception, we have been closely working with Meesho, and we have proved to be perfect partners to help them achieve a better outcome for their customers. We aim to strengthen the partnership further while focusing on our overall growth,” said Dipanjan Banerjee, Chief Business Officer, Ecom Express Limited