For ecommerce players in the country, logistics has been a major pain. Mass etailers such as Flipkart and Jabong have their own logistics divisions. However, smaller companies struggle with multiple logistics providers. Large logistics companies such as Bluedart, FedEx, Gati etc have had their dedicated services for online retailers. In addition, we have also seen rise of ecommerce focused logistic companies such as Chhotu, Mudita and Delhivery .
Latest to launch, end-to-end logistics and warehousing service is DTDC’s Dotzot. At present, Dotzot offers 6 services including Dotzot – Express, Economy, Premium, Returns and Exchanges, Collect on Delivery (COD) and Multi User Warehousing (MUW) solutions.
To understand more about Dotzot services, entry timing and status quo of ecommerce logistics in India, NextBigWhat spoke to Sanjiv Kathuria, Country head Dotzot.
NextBigWhat: Almost all leading logistic companies have had a dedicated wing for ecommerce in India from quite some time. DTDC started now with Dotzot. What opportunities do you see?
SK: If we look at logistic scenario for ecommerce in India – it has improved only few inches. Everybody talks about focused approach of mainstream logistic companies, but the real truth is that big logistic companies in India ships around 6-7 lakhs shipments everyday, out of which barely 2-3% orders (10 to 15K) are from ecommerce. So, how can logistic players focus on ecommerce? In terms of opportunities, well I said that space is in nascent stage and so is the opportunity.
NextBigWhat: Don’t you think that DTDC is bit late in extending dedicated wing for ecommerce?
SK: At Dotzot, we believe ecommerce logistics is in very nascent stage and our entry timing is perfect. Dotzot’s entry is not late at all, currently we are scratching the potential of logistics in ecommerce. We are born for ecommerce companies, and will service them only. We endeavoured not to ship anything out of ecommerce via Dotzot, and that implies our focus for the segment.
NextBigWhat: Tell us about Dotzot’s offering for online retailers in detail. Does Dotzot facilitate drop and reverse shipping?
SK: Currently, we are offering 6 services including Dotzot Express, Dotzot Economy, premium, returns and exchanges Collect on Delivery (COD) and warehousing.
With Dotzot Express feature, we offer fast, reliable, pan India door-to-door service across 8000+ pin codes spread over 2300 cities/towns. Importantly, Dotzot extends three delivery attempts sans any surcharge. On other hand, Dotzot Economy a slower and value for money service meant for larger/heavy parcels of 10 KG+ The three delivery attempts without surcharge also available with the plan.
With increasing competition and diminishing delivery time, Dotzot helps etailers to deliver on same day, AM-PM based delivery slots – morning and evening. However, the premium feature is available in selected cities (metros only).
Through Dotzot’s return and exchanges service etailers can have flexible return and exchange programs that are bundled with DotZot Express and Economy services. Our focused return service picks up shipment on same or next day and delivers back to etailer’s warehouse. We also have a seamless end-to-end service for clients that need items to be exchanged at their customers door step and the old item returned. This service is available only in select cities and pin codes.
With collection on Delivery (CoD) service, we solve the biggest pain of delay payment or struck cash flow(working capital). Our systems are designed to cater to this complexity,
we collect value of the invoice at the time of delivery and remit it immediately by RTGS/ NEFT.
On warehousing front, Dotzot solution aims to optimize inventory, storage space, labor costs and time. We store inventory, pick and ship etailer’s product where and when they want it.
It is basically on demand service, which manages etailer’s National Distribution Centre(NDC) or smaller Forward Stock Location ( FSl) to make their deliveries faster.
NextBigWhat: What is the pricing structure across various offerings under Dotzot’s umbrella? Please elaborate.
SK: Pricing depends on various factors such as volume, weight, geography and nature of the shipments. We have different pricing plans for metros, tier 2 and 3 cities.
NextBigWhat: Dotzot also claims to offer premium services such as same day delivery, morning or evening delivery slot. In how many cities Dotzot facilitates premium services?
How will this pricing integrate with Ecommerce’ market players?
SK: At present, we are extending premium services only in metros as consumers in metros typically prefer deliveries on preferred time. As I said earlier pricing depends on other factors, so won’t be able to say more about it.
NextBigWhat: Dotzot also offers warehousing solution, can you share some details about it like pricing, cities in which Dotzot has built such capabilities?
SK: Dotzot has warehouses in almost all big cities in India, and primarily, warehousing solution is on-demand service, and suits small etailers in a better way. Our Multi User Warehouse (MUW) is designed to accommodate multiple players, and space of MUW can be used as per etailers’ requirement. Again, I won’t be able to share details about pricing as it depends on various matrix.