SAMVAD: International Journal of Management

Open Access Open Access  Restricted Access Subscription Access

Are E-Commerce Companies Leaking Revenue?


Affiliations
1 Symbiosis Institute of Business Management (SIBM), Pune, Symbiosis International University, Pune - 412115, Maharashtra, India
2 Finmore Investment Advisors Pvt. Ltd., Ahmedabad, India
 

E-Commerce companies are heavily reliant on physical delivery services to realize their revenues as it is based on the physical delivery of products to the customer. They face many issues and higher costs due to challenges during the 'last mile' of delivery.

The revenue leakage is caused by the inefficiencies as well as improper behaviors of people who work as the ‘last-mile’ service providers and are responsible for collecting and delivering the goods. This combined with the fact that the vast majority of sales are via the cash-on-delivery method of payment means that significant monies are lost at the very last stage of delivery.


Keywords

Decision Table, E-Commerce, Last Mile Delivery, Revenue Leakage.
User
Notifications
Font Size

  • Agatz, N. A. (2008). E-fulfillment and multi-channel distribution - A review. European Journal of Operational Research, 187(2), 339-56. https://doi.org/10.1016/j.ejor.2007.04.024.

  • Alpesh Shah, N. J. (January 2015). India @ Digital Bharat creating a $200 billion internet economy. The Boston Consulting Group.

  • Burt, S. (2003). E-commerce and the retail process: A review. Journal of Retailing and Consumer Services, 10(5), 275-86. https://doi.org/10.1016/S0969-6989(02)00062-0.

  • Cliquet, G. P.-C. (2008). Retailing in France: Overview and key trends/what’s up? European Retail Research, 22:177205. https://doi.org/10.1007/978-3-8349-8099-1_9.

  • CII (April 2016). e-Commerce India a game changer for the economy. 29.

  • Colla, E. & Lapoule, P. (2012). E-commerce: exploring the critical success factors. International Journal of Retail and Distribution Management, 40(11), 842-64. https://doi.org/10.1108/09590551211267601.

  • Durand, B. & Senkel, M. P. (2007). La logistique de l’épicerie en ligne: Vers une différenciation des solutions. Décisions marketing, 75-89. https://doi.org/10.3917/rsg.229.0075.

  • Fernie, J. S. (2010). Retail logistics in the UK: Past, present and future. International Journal of Retail and Distribution Management, 38(11/12), 894-914. https://doi.org/10.1108/09590551011085975.

  • http://www.digitalindia.gov.in/content/introduction. (2017, April 13). Retrieved from www.digitalindia.gov.in: http://www.digitalindia.gov.in/content/introduction.

  • http://www.gstindia.com/about/. (2017, April 13). Retrieved from www.gstindia.com: http://www.gstindia.com/about/.

  • http://www.makeinindia.com/about. (2017, April 13). Retrieved from www.makeinindia.com: http://www.makeinindia.com/ about.

  • https://www.livemint.com/industry/telecom/india-s-data-usage-per-smartphone-highest-in-world-at9-8gb-per-month-report-1560936943979.html.

  • https://www.livemint.com/industry/telecom/internet-users-exceed-500-million-rural-india-driving-growth-report-1552300847307.html.

  • Jose, T. (2016, March 29). http://www.indianeconomy.net/splclassroom/162/what-is-the-difference-between-market-place-model-and-inventory-model-in-ecommerce.

  • Joshi, V. & Little, I. D. (1996). India’s economic reforms, 1991-2001. OUP Catalogue. https://doi.org/10.1093/01982 90780.001.0001

  • Kuthiala, S. K. (2002). E-commerce in India: challenges and choices. Journal of Services Research, 2(2):139.

  • Mitra, A. (2013). E-commerce in India- A review. International Journal of Marketing, Financial Services and Management Research. 2(2), 126-32.

  • Ovum (2016). The future of E-Commerce: The Road to 2026. Paris: Criteo.

  • Panagariya, A. (2000). E‐commerce, WTO and developing countries. The World Economy, 23(8), 959−78. https://doi.org/10.1111/1467-9701.00313.

  • Prahalad, C. K. (2006). The Fortune at the Bottom of the Pyramid. Pearson Education India.

  • Reddy, N. A. & Divekar, B. R. (2014). A study of challenges faced by e-commerce companies in India and methods employed to overcome them. Procedia Economics and Finance, 11, 553−60. https://doi.org/10.1016/S2212-5671(14)00220-2.

  • Shah, A., Jain, N. & Bajpai, S. (2015). India@ digital. Bharat Creating a $200 Billion Internet Economy. BCG Group Publication, AIMAI.

  • Singh, M. (2002). E-Services and its role in B2C e-commerce. Managing Service Quality Volume 12 Number 6, 434-446. https://doi.org/10.1108/09604520210451911.

  • Singh, S. K. (2008). The diffusion of mobile phones in India.Telecommunications Policy, 32(9-10), 642−51. https://doi.org/10.1016/j.telpol.2008.07.005.

  • Vasanth Kiran, D. K. (2013). Online sales in India: Opportunities and Challenges. Global Journal of Commerce and Management Perspective, 2(2), 60-73.


Abstract Views: 222

PDF Views: 77




  • Are E-Commerce Companies Leaking Revenue?

Abstract Views: 222  |  PDF Views: 77

Authors

Sandeep Bhattacharya
Symbiosis Institute of Business Management (SIBM), Pune, Symbiosis International University, Pune - 412115, Maharashtra, India
Shubhra Anand
Finmore Investment Advisors Pvt. Ltd., Ahmedabad, India

Abstract


E-Commerce companies are heavily reliant on physical delivery services to realize their revenues as it is based on the physical delivery of products to the customer. They face many issues and higher costs due to challenges during the 'last mile' of delivery.

The revenue leakage is caused by the inefficiencies as well as improper behaviors of people who work as the ‘last-mile’ service providers and are responsible for collecting and delivering the goods. This combined with the fact that the vast majority of sales are via the cash-on-delivery method of payment means that significant monies are lost at the very last stage of delivery.


Keywords


Decision Table, E-Commerce, Last Mile Delivery, Revenue Leakage.

References