Why is a logistics aggregator required for Your e-commerce Business?

 


The value of e-commerce logistics in India accounts to around 300 billion dollars, as per a Bangalore-based market research association. About 15% of the nation’s GDP is spent on logistics and transportation expenditure. Additionally, the logistics market in India was reported to grow at a pace of more than 12% in 2020. This development is driven by the e-commerce, manufacturing, and retail industries. Hence, to maintain your e-commerce business, you need services exclusively made for online business growth.  

 

What is a shipping aggregator?

Shipping Aggregator, also known as Logistics or courier aggregator, usually cooperates with various shipping organizations to help e-commerce vendors in enhancing their logistics tasks such as delivery for e-commerce businesses. By collaborating with multiple third-party courier partners, the shipping aggregators offer online sellers a wide range of shipping alternatives. 

 

For any type of industry, the business associates must maintain a legal agreement of consent to work under legitimate limitations. Hence, shipping service providers are also liable to complete a similar legal procedure to keep the clients from unfortunate losses or possible cheats. 

 

Why is a logistics aggregator required for Your e-commerce Business?

 

Here are some reasons that depict the need for a shipping aggregator for your business:



  • wide pin code reach

Some carrier companies are serviceable in specific locations where others are not. As a shipping aggregator works with a number of carriers, it gets access to a varied range of pin code locations across the nation as well as the globe. Hence, with a shipping aggregator, your e-commerce business can reach a massive customer base. 



  • The facility of the multifunctional platform

One of the valuable shipping services you get from a courier aggregator is a facility to manage multiple business processes on a single platform. For example, Cod shipping services, returns management, proceeding orders and so forth. Also, no need for external assistance is required to process your orders.



  • Shipping rates options

Multiple courier partners come with varied services and shipping rates. You can navigate through available courier options and find the best match for your order requirements ( pickup and delivery location). Additionally, you can select services that your customers prefer the most, like cheap shipping rates. 




  • Payment alternatives:

Shipping aggregators offer varied payment methods such as COD and prepaid, as well as providing customers with the option to choose from multiple payment getaways ( Credit/Debit cards, mobile payment apps, etc.), giving them maximum convenience. 




  • Marketplace and Website integration

With the help of APIs, you can integrate your e-commerce website or marketplace with the shipping aggregator. These APIs extract order data from your website and save them on the shipping dashboard. Hence you can process your orders quickly from the dashboard itself. This prevents any order loss and keeps your e-commerce site well synchronized with the shipping procedures.




  • Easy return and exchange management

Having multiple carriers allows you to process return orders without any hassles. You just need to pick a carrier partner that can efficiently perform the task. Also, as you can manage shipping proceedings using a single platform, you can directly place the return order from there. As shipping aggregators connect you with vast pin codes, you can remove restrictions on locations over return orders. 

 

Conclusion

So these were some of the reasons why a logistics aggregator is required for your e-commerce business. However, another essential factor to remember is that shopping aggregators suit best when your e-commerce business has less than 3000 orders to fulfil per month. This is because they connect you with multiple shipping partners in a rapid and simple manner. 

 

However, in case your order volumes cross 3000 orders per month, it is more convenient to make a direct tie-up with courier partners since that would provide you needed transparency of the performance of your courier partner.

 

Connect with Shyplite, the best shipping software for e-commerce, and enjoy the benefits of strong API integration, courier rate calculator feature, updated shipping dashboard and many more to organize and regulate your shipments. Also, get access to 27000 pin codes in India, 220 other countries and a vast network of 90,000 plus vendors across the country and globe. It allows you to cooperate with over 30 shipment partners helping your business to reach a broad audience. 

Location: India

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