Snapdeal set on ramping up their delivery operations, open 6 logistics hub

India: With the festive season in sight, Snapdeal has setup its new centers for logistics in Lucknow, Kolkata and Hyderabad having one hub each and the Delhi-NCR region having 3 hubs which would help them rival up against their competitions, namely Flipkart and Amazon. Snapdeal is not willing to reveal any investment details.

The processes which include receipt of stocks, quality inspection preparation of dispatch and return handling would be available under one roof as the total warehousing space is estimated to be around 1 million sq. ft. Moreover, these facilities will integrate warehousing, quality control and transportation to aid sellers.

With the addition of these six new centers, Vulcan Express which is a 100 per cent subsidiary of Snapdeal, now owns 10 warehouses. The other cities being Jaipur, Mumbai, Ahmedabad and Chennai.

Snapdeal operates through other third-party warehouse centers also, under SD+. There are 69 SD+ centers, which are managed and operated by Vulcan express and other third-party logistics partners. The SD+ centers ship 80 per cent of the orders made on Snapdeal.

According to TechSci Research, the setup of these 6 logistics centers is set to amplify the sales of Snapdeal, increasing the efficiency of deliveries as most of the shoppers belong to major and small cities. With ample amount of space available, Snapdeal can speed up their operations and warehousing allowing them to increase their product portfolio.

According to a recently published report by TechSci Research, “India E-commerce Market Forecast & Opportunities, 2020”, the country’s e-commerce market is projected to grow at a CAGR of more than 36% during 2015-2020. E-services segment, which comprises online travel, online payments, online classifieds, etc., is expected to continue its domination through 2020. However, the e-tail segment that includes electronics, apparels & accessories, health and personal care, etc., is expected to witness significantly higher market growth compared to e-services segment over the next five years. During 2015-20, the western region is expected to remain the largest e-commerce market in the country. Major players operating in India’s e-tail market include Flipkart, Snapdeal and Amazon.