3 lakh jobs in Amazon, Flipkart, Delhivery, others this festive season; shipments to grow by 57%

By: |
September 29, 2020 5:37 PM

Around 60 per cent new jobs are expected to be in logistics function while the rest may come up in warehousing and customer service functions.

consumer sentiment, consumer demand, financial services, digital payments.The festive season presents SMEs with the perfect opportunity to revive their business and turn it into a lucrative one.

Even as e-commerce biggies such as Amazon and Flipkart have been ramping up their seasonal or temporary workforce to meet the expected order rush this festive season, overall 3 lakh temporary and permanent jobs are likely to be created in the coming festive months. Majority or around 60 per cent of new jobs are expected to be in logistics function while around 20 per cent may be hired for roles in warehousing and customer service functions each, according to the latest report by consulting firm RedSeer. Importantly, around 70 per cent of these jobs are expected to be created by e-commerce platforms such as Myntra and Snapdeal apart from Flipkart and Amazon while rest 30 per cent hiring would be at logistics platforms such as Shadowfax, Ecom Express, Delhivery etc.

Flipkart had earlier this month announced that the festive season would help generate 70,000 direct and “lakhs of indirect seasonal jobs” across the supply chain including delivery executives, pickers, packers and sorters, according to a company statement. Similarly, Amazon back in May and June had announced plans to hire people for 50,000 temporary jobs in its fulfilment and delivery network and nearly 20,000 such jobs in its customer service organization respectively to meet a possible surge in demand in the following six months. According to a PTI report, Ecom Express is also eyeing 30,000 temporary jobs during the festive season to cater to the demand from e-commerce companies.

“Close to 20 per cent new employes we think will be retained by the companies as even after the festive season it is not that orders volume goes back to pre-festive. Instead, orders’ baseline grows and to cater to this new baseline, companies would need these new workers across warehousing, last mile, customer care etc.,” Mrigank Gutgutia, Director E-commerce, RedSeer Consulting told Financial Express Online.

Also read: Ahead of festive season, Amazon Seller Services gets another fund infusion from Singapore parent

The report also highlighted the growth in both hyperlocal and non-hyperlocal shipments. Up from 95 million shipments during last year festive season with 97 per cent share of non-hyperlocal deliveries and three per cent of hyperlocal shipments, 2020 season is likely to witness 150 million shipments — growth of 57 per cent from last year. The percentage rise in hyperlocal shipments from 3 per cent to 7 per cent during the said period is expected to outweigh non-hyperlocal shipments. In absolute terms, the shipments in the non-hyperlocal category would grow more than 52 per cent.

Moreover, small towns would continue to enhance their presence in e-commerce shipments. From 44 per cent last year, Tier-II and beyond cities would have their share of shipments increase to 46 per cent this year while metros and Tier-I cities would have a share of 35 per cent and 19 per cent respectively. Also, 2019 shipments majorly belonged to the e-grocery segment while this year’s shipments would also have a major share of segments including fashion, electronics, beauty, and e-pharma apart from e-grocery.

“Maximum hyperlocal growth will be in grocery and pharma as usual. The next level of growth will happen in electronics and fashion even as JioMart is integrating electronics and fashion. Beauty segment has some personal care products that behave like grocery as a category but it won’t be as big as grocery and pharma segments themselves,” Gutgutia added.

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