High Shipping Costs : The Struggle of E-commerce Grocery Businesses

Shipping costs can pose a significant challenge for e-commerce grocery businesses in India. For instance, sending a mere 3 kgs of Indra Dev Basmati rice or any rice through a courier can range from ₹250 to ₹480 within the country by road, and if the same is done by air the costs are almost double. Such high shipping rates add to the overall cost of grocery items, making online grocery shopping an expensive affair for consumers. As a result, many online shoppers find it difficult to purchase groceries through e-commerce platforms.

It is crucial for the government to step in and address this issue to ensure the smooth functioning of grocery e-commerce businesses and ease the burden on consumers. The High shipping costs actually kill the interest of budget-conscious potential customers when they reach the cart checkout page, when they see the rates of the courier they abandon the cart and never visit the website again. Double Good Organics is also a victim of this.

The Costly Reality of E-commerce Grocery Shopping

The exorbitant High shipping costs associated with grocery items significantly impact the pricing of products on e-commerce platforms. As a result, online grocery shopping becomes less affordable for consumers, hindering the growth and success of grocery e-commerce businesses.

This financial constraint discourages potential customers from utilizing online platforms for their grocery needs.

The Need for Government Intervention

To facilitate the growth of e-commerce grocery businesses and promote the ease of online shopping, it is essential for the government to intervene in this matter.

The commerce ministry should take proactive steps to engage with courier companies and India Post to negotiate reduced shipping costs, particularly for grocery items. This measure would help make online grocery shopping more accessible and cost-effective for consumers across the country.

Embracing Online Business-Friendly Policies

To foster the growth of the e-commerce sector, the government should adopt more online business-friendly policies. By incentivizing logistic companies to offer reduced shipping rates for grocery items, the government can promote the expansion of e-commerce grocery businesses.

Such support would encourage more players to enter the market, resulting in increased competition, improved services, and ultimately lower costs for consumers.

The Call to Action to Reduce High Shipping Costs

My earnest request to the commerce ministry is to prioritize the reduction of shipping costs for grocery items. By taking swift action, the government can demonstrate its commitment to supporting the growth of e-commerce grocery businesses and uplifting the online shopping experience for consumers.

This step would not only benefit the industry but also align with the government’s vision of a digitally empowered and economically progressive nation.

Why Not Make Railways The Carrier for All Freight?

It is indeed surprising that despite Indian Railways being one of the world’s largest and most extensive rail networks, there is no proper courier-like service attached to it.

Sending small parcels or bulk loads, ranging from 1 to 20 tonnes, has become a cumbersome process with unfriendly staff and a lack of a proper framework to attend to Micro, Small, and Medium Enterprises (MSME) businesses even at railway stations.

The absence of a well-structured online model to assist small businesses adds to the challenges. Instead of efficient services, one often encounters high-salaried, half-sleepy staff at the parcel and goods offices. It begs the question: why cannot Indian Railways adopt a business model similar to DTDC courier services to revolutionize courier and cargo freight?

Trains are known for their cost-effectiveness compared to road and air transportation, making it an ideal option to reduce freight costs. By implementing such a model, the railways could not only reduce freight expenses but also entice various courier services to collaborate, leading to better prices and enhanced customer service.

Moreover, this move would unlock additional revenue streams for the Indian Railways. The time has come for the railway authorities to consider innovative approaches to transform the freight and courier landscape and take advantage of their extensive network to benefit businesses and customers alike.

Conclusion to Solve High Shipping Costs

The high shipping costs associated with e-commerce grocery shopping present a significant obstacle for both businesses and consumers. Addressing this issue is crucial to make online grocery shopping more accessible and affordable for the masses. Indian Railways collaborating with courier companies and India Post to reduce shipping expenses.

The government can support the growth of e-commerce grocery businesses and enable a more seamless online shopping experience for all. Embracing online business-friendly policies will contribute to the overall development of the e-commerce sector, furthering India’s progress in the digital age.