Owing to the demonetisation drive by the Modi government, courier and logistics service provider DTDC Express has witnessed a dip of around 20 percent in total e-commerce orders during the month of November, according to a top executive of the company. “In total, we are seeing somewhere around 20 percent decline (in number of orders) in this one month,”The 26-year old firm does shipments for multiple sectors including fast moving consumer goods, pharma besides e-commerce. The company currently gets 10-12 percent of its total revenue from the e-commerce segment and targets to grow this to 35 percent by 2020.It claims to be shipping close to USD 12 million shipments on a monthly basis with e-commerce sector contributing close to 700,000 to 1 million shipments. The e-commerce sector is one the most affected sector due to demonetisation as over 60 percent of the deliveries happened through cash on delivery (COD). With short term liquidity, gone out of the system, COD has become a big question mark.
Even though the e-commerce logistics sector is barely 3-4 percent of the Rs 1000-1500 crore logistics market, the sector is expected to record phenomenal growth.