3PL’s share of online orders set to rise in 5 years: Redseer report

Third-party logistics players’ (3PL’s) share of e-commerce shipments, excluding grocery, will continue to grow in line with the growth in online shipments over the next five years, according to a report by Redseer. In FY24, this stood at $4.4 billion and is expected to rise by 30% to $15-17.5 billion by FY29, the report notes.

Redseer notes four key growth drivers for this: New e-commerce models that rely more on 3PL are growing at a faster pace, horizontal marketplaces will continue to rely on 3PLs for broader reach and specialised shipment requirements, tier 2+ cities are expected to contribute close to 65% of e-commerce shipments by FY29,