BIGrowtec
BIGROWTEC
CONSULTING PVT LTD
" 'Idea to IPO' MSME scaling experts"
Last-mile delivery service
for 1000+ E-commerce companies - LMDHubs
We promote a network of LMDHubs across India - with 1500 LMDHubs in Kerala only. Great chance to start a decent business locally.
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What is Last Mile Delivery?
Last mile delivery refers to the very last step of the delivery process when a parcel is moved from an e-commerce seller or warehouse, for example from Amazon to its final destination- a person's residence or retail store. This is the most critical step in the delivery process and the one that sellers want to ensure as quick and efficient as possible.
Furthermore, last-mile delivery performance has become the most important component in the relationship between E-commerce vendors and end consumers, as it may either develop or break the bond, which has a direct impact on the client’s re-ordering choice. Customers now have a plethora of online purchasing choices to choose from. As a result, e-commerce merchants put pressure on last-mile service providers to improve their performance.
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Future of E-Commerce in India - & LMDHubs
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The future of eCommerce in India is enormous, and the ever-increasing penetration of smartphones will only add impetus to the growth. Online selling and purchasing offer innumerable benefits to both sellers and buyers, and these advantages are also the reasons for the rising scope of eCommerce. As of 2017, the total value of the e-commerce business in India was USD 40 billion, according to IBEF, and it is expected to hit USD 200 billion by 2025. By 2030, it is expected to reach US$ 350 -400 billion i.e. 30 lac crore rupee!!- huge.
Yes, considering India's huge population, vast area, ten thousands of remote villages, fast economic development, and most importantly very fast e-commerce sector familiarization increase the scope for the last mile delivery hubs- business opportunity is immense.
Consumers' buying behaviors have changed, especially when it comes to online shopping. E-commerce, online shopping, doorstep delivery, and same-day delivery shall be normal and habitual by 2025 even in remote areas. Because today’s consumers expect a variety of quality products for cheap rates- and free and fast delivery.
Scope of
Last mile delivery hub (LMDHub).
Why Last-mile delivery hub?
LMDHub a great local business to start locally.
By now, we’ve established that in e-commerce an efficient last-mile delivery process is essential to keeping customers happy. Moreover, while tier-1 cities will continue to be the largest contributor, driven by the overall e-commerce sector, tier-2, tier-3, tier-4, and remote villages are expected to have a higher growth rate compared to tier-1 cities, due to increased services of online players in these areas.
The paradox is that while the customers want shipping that’s free and fast, it also happens to be the most expensive and time-consuming part of the shipping process.
How easy it is for customers to find an alternative place to shop, but, companies can’t afford to disappoint them. This means companies have to foot that cost and focused on the promptness of last-mile delivery. And that right there is the last mile delivery problem.
Last mile shipping can account for 53% of a shipment’s total costs. Companies typically take about 25% of that cost themselves, but this price is increasing as supply chain inefficiencies are becoming more and more costly. Optimizing last-mile delivery can result in significant savings for eCommerce and online retailers, especially as the number of eCommerce shipments across most industries continues to skyrocket.
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Why Last mile delivery hub?
But in reality, a route could be several miles long and with only a few deliveries in total in that area, especially in rural areas. That means a lot of time and gas spent on only a few deliveries. Similarly, in heavily urbanized areas, the congestion of traffic can use up just as much time and gas, even though the drop-offs are closer together.
Today, e-commerce companies, online stores, home delivery merchants, drop shippers, online wholesalers, and shipping companies are facing the problem (in the last mile) of delivering goods and services- equally, in rural areas and congested town areas. That is why too many e-commerce companies limited their delivery to selected cities only- not entertain orders even from tier 2 and tier 3 cities. 90% of e-commerce companies do not offer services in village areas. It is due to remoteness, long traveling, nonviability and unprofitability, lack of proper road connectivity, climate change, etc.
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LMDHubs @Kerala
But, it is not viable to set up own warehouse/delivery hub for each e-commerce company in every location. So, the solution to solve the last mile delivery problem of 1000+ online vendors, e-commerce companies, and wholesalers is to set up a local network of LMDHubs, small warehouses and remote delivery hubs. across the edge of the city limits and in remote villages across India- we do that.
So, in this emerging e-commerce, BIGrowtec initiate a LMDHub network, which comes with 1500 LMDHubs across Kerala. And each LMDHub should handle the parcels of and for 500+ e-commerce vendors and online merchants from across India- in that assigned area. And Each LMDHub act as a demo, wholesale and commission agency point for many products and companies.
Decent business and steady income.
LMDHub business opportunity
LMDHub Business, investment & income.
In this last-mile delivery service company, the duty and responsibility of each last-mile delivery point (LMDPoint) is to provide last-mile delivery support for 500+ online vendors, online wholesalers, and e-commerce companies from across India. I.e. each LMDPoint receives parcels from 500+ vendors and delivers them to end customers- residents, institutes, or stores in the assigned area.
Each LMDHub warehouse or delivery hub shall have a space of 150-300sqft depending on the area on the edge of your city or village. Simply, each delivery hub in the city edge or remote area handles the final mile delivery of and for 500+ e-commerce stores and online vendors, for that assigned area. This is a great low-cost local business opportunity for small business seekers. Each LMDPoint need to buy or hire a few scooters, autos, vans, or trucks to deliver the parcels to the customers' doorsteps.
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Business
The main business of each LMDHub is the last mile delivery of parcels from 500+ e-commerce vendors -retail and wholesale vendors, from across India- rarely from abroad. This includes normal retail parcels to residents, offices, etc., and wholesale parcels to institutes, stores, restaurants, companies, etc; machinery, raw materials, products, etc.
Along with parcel delivery from e-commerce merchants, each LMDPoint is a product display, order processing, and delivery (sale) hub of many other items/companies from across the world- a wholesale and commission point also. This is another main source of Income.
Investment.
50,000-100,000 rupee
This is one of the nonexpensive but most demanded essential local businesses. The main Investment requirement is leasing a space of 150-300sqft for a delivery hub/warehouse. Remind it, no need for prime location and prime space for this- just a room space of least rent, at the edge of the city or village angadi, enough.
No need for costly furnishing and rack arrangement, but for convenience a simple rack on a side to keep small packings, etc. Then, the capital requirement is a mere 50,000-100,000 rupee depending on the area, for the cost of the application and deposit. And for security guarantee need mere bank cheque and agreement only. But, carefully observe the applicant and genuinity.
Monthly Income.
75000 -1,50,000 rupee /month
This is a comparatively non-expensive, non-risky, locally demanded service business or self-employment with good regular income potential. And No need for any former business experience here- and equally good to gents, ladies, retirees, etc. Moreover, each LMDHub works as a local demo, wholesale, distribution, and supply hub for many companies along with the main last-mile delivery service- so, increased income and profit are assured. The expected normal monthly net income is 75000 -1,50,000 rupee depending on the area/city
Is looking for a great local business?
Think about the future potential and local demand- of that business is important when deciding on a business.
If you’re specifically looking for a locally demanded business idea you need to think about the future of that business. And assure the business ideas match the future demand and are locally essential ones. Every year, thousands of businesses are initiated, but 8 out of 10 businesses get shut off due to several reasons. The major reasons behind the closure are nonfit for the future, less local demand, tough competition- and that business is from a declining sector.
Efficient management and minimum required capital are a few key ingredients without which a sustainable and profitable business is not possible. But, another thing that is inevitable these days is exploring upcoming and futuristic business ideas. While most businesses get obsolete within a few months or few years and the entrepreneurs are forced to shut them down you have to select the futuristic and quite essential business that is ahead of time.
Developing a future demand approach in business selection is not that difficult. All you need to do is keep an eye on declining fields, trends, and industries as well as fast-growing sectors. Today, E-commerce- and related services, are the most demanded, most essential, connect to the entire society, and fast-growing field- and no chance of declining in the coming 50 years.
Last Mile Delivery Hub
It is a great, non-expensive, and really futuristic local business idea for you that can fetch more, higher, and sustaining profits in the long run.