E-commerce in India is in its early stages, and the most significant hurdle for the market is the pricing structure of transportation, according to a top Flipkart official.
Speaking at the Walmart development Summit, Flipkart CEO Kalyan Krishnamurthy stated that the Government has reduced taxation and implemented ease of doing business as a strategy, which is one of the causes driving e-commerce development.
“One of the main difficulties that e-commerce alone can solve is the cost structure of logistics. India, in general, is a low-ticket market. Whenever we can get to a lower logistics cost structure, we will be able to increase our commerce penetration,” Krishnamurthy stated. The e-commerce business aims to shift its delivery fleet to electric vehicles by 2030.
According to Krishnamurthy, e-commerce penetration in India is roughly 7-8 per cent compared to retail, although it is higher in some product categories such as electronics.
“Simplifying taxes was formerly one of the most difficult problems. As I have stated, the Government has performed admirably in all of these areas. The ease of doing business notion has been adopted by the Government as a strategy. Technology enablement has also played an important role in making doing business easier,” he added.
The business reported a 9.4 per cent growth in consolidated net total income to Rs. 56,012.8 crore for fiscal year 2023, up from Rs. 51,176 crore in FY 2022. Despite this, the loss increased to Rs. 4,890 crore from Rs. 3,371.2 crore.
