How Daraz overcame ecommerce’s logistics challenge?

How Daraz overcame ecommerce’s logistics challenge?

While the ecommerce industry has grown tremendously in Pakistan over the past few years, there is significant potential for further development. Logistics has remained one of the main challenges in the ecommerce companies and can only be overcome through innovative solutions.

In 2018, Daraz, the leading online marketplace in Pakistan, launched Daraz Express – Pakistan’s first logistics company specifically designed for ecommerce operations. In 2019, the company focused significantly on building a robust logistics infrastructure and ensuring the growth of DEX remained a key strategic priority.

Over the course of a few months, DEX grew to employ more than 1,000 riders and delivery lead times were reduced by 1-2 days.  During the 11.11 sale, the logistics company hired an additional 3,000 DEX Heros to help ensure the swift fulfillment of thousands of orders placed by a customer base spread across more than 590 cities. 100,000 packages were dispatched everyday for delivery during the mega sale event. Today, DEX hires 1,800 Heros who carry 63% of all Daraz orders.

By focusing on the development of DEX’ operations, Daraz has been able to ensure enhanced customer satisfaction. Going a step further, the company has kicked-off 2020 by launching express delivery in 19 cities.

With the new premium service, Daraz customers in 19 cities – including Karachi, Lahore, Islamabad, Hyderabad, Gujranwala, Sialkot, Faisalabad and Peshawar-  can avail the express delivery option at the time of check out to have their packages shipped to their doorstep within one day. Express delivery is also available on DFresh, a service through which customers in Karachi, Lahore and Islamabad can have fresh fruits and vegetables delivered to their doorstep.

Further, same day delivery has been launched in Karachi on a wide range of products including  authentic goods from leading local and international FMCG brands including P&G, Unilever, Nestle, Reckitt Benckiser, Tapal and Shan Foods. The service is also available on popular products from popular electronics and fashion brands such as Samsung and Daraz Select. In order to avail the service, customers need to ensure they place their orders on the platform before 4pm and choose the express delivery option at checkout. Daraz plans to rapidly expand the service into other cities over the course of the year.

The express delivery service is complemented by Daraz’ warehouses which are located in Karachi, Lahore and Islamabad and carry the platform’s top selling products. Whether they are paying digitally or with cash upon delivery, customers can avail the express delivery service.

Since its launch in October 2018, DEX has grown significantly. Daraz’ mission for the next year is to scale express deliveries and enhance customer experience and stands in a unique position in the Pakistani ecommerce landscape to work towards that goal. The launch of the premium service in 19 cities is a first and promising step.