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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.
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  • Are E-Commerce Companies Leaking Revenue?

Abstract Views: 320  |  PDF Views: 112

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