e-commerce

Shiprocket Sees 35% Festive Season Surge, AI Push Lifts Fulfilment Capacity by 50%

India’s festive e-commerce boom has powered a 25–35% rise in shipment volumes and GMV for Shiprocket, with demand growing evenly across metros and non-metro cities. Over 60% of orders now originate from tier 2 and 3 locations, led by fashion, beauty, and small electronics

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Summary
Summary of this article
  • Standardised partner training to boost fulfilment accuracy and SLA compliance

  • Strengthened warehousing and demand forecasting infrastructure

  • Expanding D2C seller base across India’s smaller cities

As India’s e-commerce logistics network is in overdrive this festive season, Shiprocket has reported approxitely 25-35% jump in shipment volumes and gross merchandise value (GMV) as compared to non-festive months.

The growth, according to Shiprocket COO Gautam Kapoor, is evenly spread across metros and smaller cities. This demand spike has been led by three high-performing categories, including fashion, small electronics, and beauty products.

During this festive season, Shiprocket has observed a significant shift in e-commerce order volumes, with over 60% of online orders originating from non-metro areas. Kapoor attributed the growth to the growing digital penetration and purchasing power in tier 2 and 3 cities across India.

“We have strategically focused on enhancing our infrastructure and services to cater to this expanding market. Our efforts include upgrading warehousing capabilities and implementing AI-driven inventory and demand forecasting systems to ensure efficient order fulfillment across both metro and non-metro regions,” he told Outlook Business.

These infrastructure upgrades have also created a strong foundation for onboarding new sellers and D2C brands, which typically see a sharp rise during every festive quarter – particularly across high-demand categories like fashion, beauty, and electronics.

This year, instead of scaling a direct workforce, Shiprocket has focused on scaling intelligence. Its AI-driven allocation engine, predictive demand mapping, and partner visibility dashboards enable courier partners to efficiently deploy and manage their gig workforce. These interventions have improved partner capacity utilisation by nearly 40–50%,” he said.

While temporary hires support seasonal peaks in fulfilment and customer service, Kapoor said that a majority of roles remain focused on long-term technology and process innovation, reinforcing Shiprocket’s commitment to sustainable and tech-led growth.

“Our approach focuses on technology-led enablement rather than large-scale hiring. We equip courier and fulfilment partners with advanced digital tools such as Control Tower dashboards, allocation insights, and real-time performance tracking, allowing temporary and gig workers to onboard and become productive quickly,” Kapoor noted.

The logistics company also collaborate with partners to standardise training frameworks that emphasise delivery accuracy, customer experience, and compliance. For this, key skilling metrics such as onboarding time, first-week fulfilment accuracy, and SLA adherence are closely tracked to ensure consistency.

During the festive quarter (Q3) of 2024, Shiprocket projected a significant surge in e-commerce activity, with the Indian market expected to reach a GMVof $12 billion, marking a 23% increase from the previous year’s $9.7 billion.

“Looking ahead, Shiprocket is optimistic about sustaining this growth trajectory, with expectations of continued expansion in both domestic and international markets, driven by technological advancements and strategic partnerships,” he added.

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