For ecommerce players in the country, logistics has been a major pain. Mass online retailers 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, unicommerce and Delhivery .
Latest to launch end to end logistics and warehousing service is DTDC’s Dotzot. To understand more about Dotzot’s services, entry timing and status quo of ecommerce logistics in India, NextBigWhat spoke to Sanjiv Kathuria, Country head Dotzot. Edited excerpts of the interaction:
DTDC started now with Dotzot. What opportunities do you see?
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.
Don’t you think DTDC is bit late in setting up dedicated service for ecommerce?
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 endeavored not to ship anything out of ecommerce via Dotzot, and that implies our focus for the segment.
Tell us about Dotzot’s offering for online retailers in detail. Does Dotzot facilitate drop and reverse shipping?
Currently, we offer 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 weighing more than 10 kg. The three delivery attempts without surcharge also available with the plan.
Through Dotzot’s return and exchanges service etailers can have flexible return and exchange programs that are bundled with DotZot Express and Economy services.
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.
What is the pricing structure across various offerings under Dotzot’s umbrella? Please elaborate.
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.