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How AI and automation are transforming e-commerce logistics

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E-commerce is altering the future of businesses by offering consumers ease of access, be it goods, services or information. While e-commerce means the simple buying and selling of products and services over the Internet, its success relies on the complexities of accuracy and timely delivery. And, e-commerce logistics handle just that!

Logistics in e-commerce consists of the steps of sourcing products from sellers to buyers when consumers shop online. It involves tasks such as keeping a check of inventory, storing products, packaging them for shipment, placing labels on them, generating bills, arranging delivery, securing payments, and managing returns when required. For this reason, effective logistics powered by AI guarantee that the products promised to customers reach them securely.

Market overview

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As of 2023, the global e-commerce logistics market size reached $431.6 billion. Looking ahead, it is expected to reach $1,437.9 billion by 2032, showcasing a growth rate (CAGR) of 13.9 per cent during 2024-2032, according to a report by the IMARC Group. These statistics indicate the growing demand for rapid and reliable shipping services.

In such a fast-shifting domain, AI and automation are steadily replacing conventional processes. Its algorithms are designed to boost last-mile delivery efficiency by mitigating costs. AI is particularly apt for logistics thanks to its ability to forecast future production and conveyance volumes, leading to more efficient resource utilisation. By enabling this, industries can bring forth a synergy and improve customer experience.

A step towards AI

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AI is forging a change in e-commerce logistics too by spearheading the adoption of advanced technologies. It modernises operations and improves the customer experience via an array of tasks such as the fulfillment of orders, shipment tracking, route optimisation, data analysis, etc. Notably, the global AI market size was estimated at USD 196.63 billion in 2023 and is projected to grow at a CAGR of 36.6 per cent from 2024 to 2030, as per Grand View Research.

From the initial ordering to the final delivery, AI’s speed, capability and processes cater to the convenience of consumers. AI assists in predicting the demand for new products, raising inventory levels, and streamlining processes. An AI-led warehouse management system powers order processing tasks such as picking, packaging, and shipping, reducing manual labour and the possibility of errors. When put in place, it allows workers to focus on tasks involving higher mental ability and intelligence.

Additionally, route optimisation for delivery efficiency becomes simplified with AI. It tracks products in real-time, monitors parcels, and enhances shipping routes. Such optimisation reduces delivery time and saves fuel costs. Alongside, AI-powered voice assistants aid users in interacting with e-commerce platforms, solving product queries and expediting purchases. When it comes to feedback, AI comes into the picture by reading through messages, complaints and queries. Besides, AI-driven systems simplify returns management by automating processes, marking returned items, and defining their further treatment. It ensures these items are sent back to the warehouse via appropriate routes in a secure manner. With the help of AI, industries have a chance to take the sustainability route and recommend sustainable practices by analysing data and identifying areas where resource consumption can be lessened.

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AI can also make significant strides in providing tailored recommendations for customers. It can be put in place to create refined recommendation systems that analyse customers’ buying history, browsing habits, and consumption patterns. Such will empower e-commerce players to enable a quick shopping experience for their users.  

The way forward

As AI and automation continue to evolve, it will support e-shops, courier companies, and third-party logistics firms alike. Moreover, AI will enhance the speed at which goods are delivered across borders. Powered by AI, systems will be able to ensure that products are available and set to dispatch as soon as an order is placed.

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However, trials for the successful integration of AI in businesses will persist such as the cost of implementation and skilling of labour. Therefore, e-commerce businesses must have a comprehensive logistics process to meet customer expectations and enjoy a competitive edge. It is advised to them to be up-to-date with the recent AI advancements and automation to enhance capabilities locally and globally.

This article has been authored by Fship Logistics CBO Raju Sinha.

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e-commerce

Indian used car market matures with steady 6-10 per cent monthly sales in 2025

Cars24 report shows Baleno tops charts, Tier-2 cities drive 62 per cent demand and financing hits 52 per cent.

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MUMBAI: Buckle up India, the used car market isn’t just cruising anymore; it’s shifting into a smooth, confident overdrive, proving that pre-loved wheels have officially become the nation’s smartest first choice. According to the latest Gears of Growth 2025 report by Cars24 and Team-BHP, every single month chipped in a rock-steady 6-10 per cent of annual volume in 2025. No wild festival spikes, no desperate year-end discounts just consistent, need-driven buying that screams market maturity.

Discovery has gone fully digital, with trust now riding shotgun on video. Pre-delivery inspections were googled by over 1.7 lakh Indians last year, while Youtube reviews turned casual scrollers into confident buyers. Even AI is steering decisions: search volumes for “buy” rocketed 7.2x, “new car” 8.1x, “sell” 2.3x and “challan” a whopping 9x year-on-year, with overall AI queries surging 6.7x.

The old NCR monopoly is history. Maharashtra now leads with 20.1 per cent share (up from 16.4 per cent), Karnataka jumped to 16 per cent (from 10 per cent), Gujarat surged to 13.1 per cent (from 8.7 per cent), Uttar Pradesh climbed to 12.5 per cent, Tamil Nadu to 11.7 per cent and Telangana to 10 per cent. Delhi’s slice shrank dramatically from 13.8 per cent to 5.8 per cent, and Haryana from 10.7 per cent to 5.6 per cent. The centre of gravity has clearly shifted: Tier-2 cities now command 62 per cent of sales versus 38 per cent in metros.

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Hatchbacks still steal the show with 52 per cent share, SUVs revved up to 32 per cent (up sharply from previous years), while sedans eased to 16 per cent. Baleno became India’s undisputed used-car king at 15.5 per cent, followed by Grand i10 at 13.2 per cent and Kwid at 11.3 per cent. Nexon, Tiago, Elite i20, City, Swift, Amaze and Creta rounded out the top 10, with compact SUVs and feature-packed rides clearly winning hearts.

Buyers are spending more average selling price settled at Rs 5.47 lakh but not uniformly. Karnataka led at Rs 5.06 lakh thanks to newer models, Tamil Nadu at Rs 5.49 lakh, Maharashtra Rs 5.06 lakh, Gujarat Rs 5.05 lakh and Uttar Pradesh the most value-driven at Rs 4.90 lakh. Petrol ruled with 84.5 per cent share, diesel 9.46 per cent, petrol+CNG 5.96 per cent and EVs/hybrids a tiny 0.08 per cent. Manuals still dominate at 72 per cent, automatics at 28 per cent, with younger buyers, women and metro residents leaning more towards self-shifters.

Silver emerged as the nation’s favourite shade (over 30 per cent), teaming with white to claim 57 per cent of all cars. Financing is now the real hero, 52 per cent of buyers went the EMI route in 2025 (average Rs 11,400 monthly), up dramatically from 23 per cent in 2024, with non-metro markets hitting an impressive 58 per cent penetration. Digital lending handled the heavy lifting, especially for cars above Rs 7 lakh where financing crossed 60 per cent by early 2026.

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From AI-powered confidence to feature-packed upgrades and EMI-friendly ownership, 2025 proved one thing loud and clear: India isn’t just buying used cars, it’s choosing smarter, bolder and far more exciting rides than ever before. The future of driving? It’s already on the road, and it’s looking remarkably well-certified.

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