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Business News » Small Business News

E-commerce companies delivery time in Indian cities slower than in Saudi Arabia

While it takes around 4 days for delivery in Saudi Arabian cities, it takes much more time for e-tailers to deliver in Indian cities.

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E-commerce companies delivery time in Indian cities slower than in Saudi Arabia
A Flipkart delivery man. Photo: Reuters

While e-commerce companies in India try compare themselves to some of the top companies in the world, they may still be way behind many countries. E-tailing delivery performance across major cities is better than in Indian cities, according to RedSeer Consulting report.

While the Indian E-commerce market is much more competitive and mature (in terms of well-funded players) than Saudi Arabia, deliveries across Riyadh and Jeddah are still much faster than Mumbai, Bangalore and Kolkata, the report said. Only Delhi has a faster delivery time than the Saudi Arabian cities.

The reason for the faster delivery time in Saudi Arabian cities is due to the relaxed inter-state and inter-country tax norms. In India around 60% of the total delivery time in road transportation is spent on paying taxes.

Compliance for all Saudi Arabian cities is 100%, even though majority of orders are non-warehouse fulfilled, compared to around 88% across Indian cities.

Sandeep Ganediwalla, Managing Partner, RedSeer Consulting said, “The simplified (read no interstate transfer tax) tax regime across Saudi Arabia, has led to check-post free travel, leading to a faster supply chain. Whereas in India, 65% of logistics move by road and time spent at interstate check posts due to the difference in taxes between states accounts to idle time (60% of total journey time). This is despite the Indian market being more competitive and mature.”

However, promise dates of delivery in Saudi Arabia are longer at around 8 days than in India where it is less than 7 days.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
E-commerceE-tailingonline deliverySaudi ArabiaMumbaiDelhiRedSeer ConsultingStartups
Written By: Collin Furtado
Updated: Mon, Dec 19, 2016
05:29 pm
Mumbai, ZeeBiz WebDesk
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