Rising demand for Dark Stores pushes Growth of Urban Logistics spaces across India

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Rising demand for dark stores pushes growth of urban logistics spaces across India

Do you know what’s the new normal?

Same day delivery is new normal isn’t it?
Managing growing demand is tough, isn’t it? Let us give you a shortcut for it.

Don’t worry, we won’t ask you to do something shady. 

Consider setting up a dark store model for your business and voila half of your fulfillment stress is gone. Just like Woosh!

Dark stores functions just as offline stores but without customers.

Let’s say, you take up an abandoned brick-and-mortar location that has been shut down or is available for you to use and convert it into your warehouse, fulfilling your operations on faster and more efficient way without you intervening.

Now you have got more time to grow your business instead of focusing on calling up your logistics partner every now and then. 

Operations of Dark Stores and Dark Store warehouse

Vector of dark stores

Dark stores work well for last-mile connectivity and increase driving efficiencies. They reduce logistics costs and potentially save almost 10-30% of the logistics cost. 

Dark stores in India is a relatively newer concept. However, many businesses under wholesale distribution centers are moving towards dark stores. 

The main aim of dark stores is to act as a micro-fulfillment center to enable quick shopping and fast delivery while incurring lower costs. It sounds too good to be true, doesn’t it? But it’s true!!

India shows huge potential in the urban logistics sector as it is going digital

In January 2022, there were about 658 million internet users out of which 467 million user were social media users in India.

With increasing digital usage by Indians, the pace of urban logistics is also on the uptrend. 

E-commerce platforms are also growing in two ways – the rise in demand and the number of platforms available.

The brands are competing against each other to gain the most customers in the market. For this, quick deliveries or same-day deliveries are the most demanded. 

There’s a direct relationship between digital users and e-commerce businesses.

As people switch to digital means, they are bound to increase their purchases from online outlets (Well who doesn’t like to get things done just by sitting on their bed/couch).

The reason why e-commerce businesses will grow can be realized in the following manner:

  • Deals and Discounts available

E-commerce platforms offer users additional benefits, such as the ability to easily check out businesses and order products. Even after taxes and delivery fees, users see increased utility.

  • Warranty and return/exchange options

Initially, many people indeed have suspicions regarding online purchases. As options are available for return and exchange, consumers are more willing to purchase goods. 

  • Time-saving

Let’s be honest, who wants to go out to purchase essentials when you can order them online? Instant by Swiggy is a good example of the same.

A lot of time is saved by online shopping for consumers, increasing the build-up of customer relationship. 

  • Same-day delivery 

Offline shopping is preferred by individuals because you can get your essentials instantly.

When e-commerce businesses offer them the same benefit, it’s like a double icing on a cake – users will be more willing to purchase items. 

Setting up dark stores will provide wiiinnggss to your businesses logistics & fulfillment.

It will solve the problems of slow delivery and product damage for the consumer.

At the same time, it will also solve the problem of higher logistics costs and round-the-clock operations. 

Before setting up these units, if you are worried about potential consumer demand growth, you do not need to. The digital India program by the government aims to empower India digitally. 

Furthermore, when you look at meeting deliveries with this increasing e-commerce demand, sustainable provisions need added attention.  

Dark stores will aid businesses in maximizing efficiencies and optimizing distribution to customers.

Moreover, they save real estate budgeting – you can easily convert parking spaces, building basements, and inoperative facilities to function as dark stores, Isn’t that great? 

Hence, it is very evident how the potential of the urban logistics sector will grow as India goes digital because 

  • Customer demand will increase.
  • Competition between e-commerce businesses will rise.
  • Customer satisfaction needs to become a priority.
  • Environmental concerns, especially pollution, should be addressed.
  • Product logistics will have to be solved – missing or damaged items.

Conclusion

With the rise of consumer demand and e-commerce platforms, users have multiple pathways to meet their needs. 

Customer trust in your brand will increase only if maximum efficiency is present in urban logistics.

This way, consumers will be satisfied with your product and will be willing to give referrals to others. 

Courier aggregators in India