Meesho, which is an internet commerce firm supported by SoftBank is expecting to become the biggest contributor in the e-commerce shipping industry through third-party logistics (3PL) companies like Ecom Express, Delhivery, Shadowfax, and Xpressbees. The company is likely to make shipments of over 1.2 billion, which is double the number of its current shipments through the players of third-party logistics for the financial year 2023. This will help the company to become one of the leading players in the e-commerce industry by using the 3PL platform like Flipkart and Amazon which are using 3PL platforms for their shipments.
According to the fulfilment and experience CXO of Meesho, Sourabh Pandey, the e-commerce company is delivering 35% of its shipments through 3PL. the order of Meesho grew almost 5 times at the end quarter of 2021, which helped the company to become the only largest contributor to 3PL players.
The growth scale of Meesho is one of the vital drivers for the expansion of the 3PL industry.
The major 3PL partners according to Meesho are Ecom Express, Xpressbees and Delhivery. The growth scale of Meesho is one of the vital drivers for the expansion of the 3PL industry. The 3PL industry in India witnesses a sudden rise in order during the festive season with the seasonality in e-commerce. however, Meesho has marked the growth of 16% shipments in the 3PL from January – to March. Estimated to be around $792 billion, the unorganised retail sector of India is prepared to witness the growth with the help of digitisation that Meesho envisions for millions of small businesses.
Meesho has raised a funding of $570 million last year from B Capital Group and Fidelity Management & Research Company as investors. The valuation of Meesho was $4.9 billion followed by the fundraising. According to Sourabh Pandey, the company is set to enter the Tier 2 and Tier 3 markets of rural India with a lot of growth that these markets will bring.
Partnering with the 3PL providers is helpful for the growth of the company as it is covering almost every part of India whereas the in-built logistics network is only able to cover 50-6- per cent of pin codes in India. Experts agree that outsourcing logistics to a third-party logistics provider gives access to advanced transportation options, is cost-effective and also improves flexibility and customer satisfaction, and also enables the company to concentrate on its core skills. Alongside, the popularity of 3PL has also opened job opportunities for the blue-collar workers in the nation.
Meesho is expecting to become the biggest contributor in the e-commerce shipping industry through third-party logistics (3PL) companies.
Meesho is contributing to over 60% of Shadowfax’s e-commerce and the company believes that the growth will keep increasing in the tier 2 regions if the adoption of e-commerce continues. The CEO and Co-founder of Shadowfax, Abhishek Bansal has said that the e-commerce 3PL of the company is boosted with the help of Meesho.
Chief Business Officer of Ecom Express Limited has shared that the company has been closely working with Meesho since its inception. Asset-light business models are becoming increasingly popular among new-generation digital and e-commerce platforms, paving the way for their efficiency while also promoting the 3PL eco-growth, he added.