The Impact Of E-Commerce On Logistics: Challenges, Opportunities And Future Trends

E-commerce has grown rapidly in the last decade as more consumers buy products digitally. It is bound to impact logistics in more ways than one, writes Devanantham Ilavazhagan, Product Manager - Ramco Logistics Software, Ramco Systems

- Devanantham Ilavazhagan

With over 33 per cent of the world's population shopping online, ecommerce is a USD 6.8 trillion industry in 2025 and will reach the USD 8 trillion mark by 2027. In ecommerce, shipping makes up nearly 90 per cent of total order fulfilment costs, and lastmile delivery represents the biggest part of it. Between 2018 and 2023, the share of lastmile delivery costs out of total shipping costs has increased to over 50 per cent, pushing couriers to introduce other collection options as alternatives to home delivery of single parcels. 50.6 per cent of people shop online because of free shipping, making it crucial to keep the logistics costs as low as possible to improve profitability. As online shopping continues to grow, logistics providers face challenges and opportunities in adapting to this new reality.

ECOMMERCE LOGISTICS IN INDIA

The India E-commerce Logistics Market size is estimated at USD 4.42 billion in 2025 and is expected to reach USD 7.85 billion by 2030, at a CAGR of 12.18 per cent during the forecast period (2025-2030). The market is witnessing unprecedented technological integration and automation across the logistics value chain. Logistics providers are increasingly adopting advanced technologies such as warehouse management systems, automated sorting solutions, and real-time tracking capabilities to enhance operational efficiency and meet growing consumer demands for faster delivery times.