Many businesses are expanding internationally in the current, fiercely competitive climate to increase market share and benefit from more efficient manufacturing and procurement. E-commerce businesses have grown enormously in the last 2 decades due to the internet's quick development. Today, when we talk about e-commerce, the first thing which comes to people's mind is various e-commerce platforms, various products from across the globe, and buying products while sitting in the comfort of one's home but hardly anyone thinks about the logistical operations involved in e-commerce which completes the cycle of different links involved in ordering, placing and delivering of a product.

E-commerce has given logistics companies new opportunities as well as obstacles. The cost of logistics and transportation significantly impacts the profitability of the corporation and the logistics department is under intense pressure from a global market to deliver the items as swiftly and affordably as possible. To save costs and enhance customer service, organizations throughout the world are being forced by the global competitiveness of the 21st century to review their logistics operations and systems.

Outsourcing one or more logistical tasks to 3PL companies is becoming the most common logistic approach which is a less researched topic and not many authors have written about this topic. The proposed research paper will deal with the functioning, issues and suggestions which can be provided to enhance the functioning of third-party logistical services.

Literature Review:

• Third Party Logistics in E-commerce Environment
  The given article gives a basic overview of the e-commerce industry and the development of third-party logistics in the e-commerce industry. The research article talks about the current status of third-party logistics. The author also talks about the supply chain, the challenges faced in the supply chain the key factor influencing the efficiency of the supply chain and how third-party logistics is one such key factor influencing the efficiency of the supply chain.
  
  The research article very well establishes the relationship between e-commerce and logistics and how third-party logistics complement the e-commerce industry by helping the company focus on the business and cutting down the cost of inventory and warehousing. The paper also provides for the upcoming challenges that can be faced by third-party logistics because of the exponential growth in the number of e-commerce consumers. However, the paper fails to provide any feasible solutions regarding the current issues or the issues that can be faced in the future because of the ever-increasing demands of consumers. The paper also gives a good gist of the two main trends of 3PLs but without sufficient data.
   
• Logistics Capability, Logistics Outsourcing and Firm Performance in an E-commerce Market:
  This research paper analyzed the effectiveness of the company's logistics channel. In this study, we explore how the e-commerce business has influenced perspectives on logistics outsourcing and third-party logistics. There is also research into the supplementary benefits of logistics outsourcing. Outsourcing logistical functions is hypothesised to play a moderating role in this study. E-commerce will increase demand for logistics outsourcing.
  
  Online transactions must be reliably recorded, products delivered from warehouses to clients, inventory levels tracked, payments recorded, and customer questions resolved quickly. Traders have had these challenges for decades. A third-party logistics supplier can help a company compete without a strong internal logistics department. It has also been shown that outsourcing logistics poses no risk to the company and aids in the advancement of the business.
   
• The effects of logistics capabilities on firm performance:
  customer-focused versus information-focused capabilities In this research paper, it was to explore potential strategies that could help the organisation increase its position by capitalising on its logistics skills. These days, it's common knowledge that a company's success can be predicted in large part by its level of investment in information technology and information-focused competencies.
  
  The ability to effectively manage information technology has repeatedly been identified as a core competency for successful logistics operations. However, there is a dearth of studies that either take a broad perspective on IT or examine its interplay with other logistics capacities.
  
  The current study uses a mix of outcome-based (ROA, logistics cost) and behaviour-based (customer satisfaction) metrics to evaluate business success. The results of this study show that customer-focused competencies play a crucial role in determining a company's success. Consequently, businesses should foster a sense of intimacy and dedication in the channels by which they interact with their clientele. Extensive Research has shown that a company's performance can be improved by investing in an IT infrastructure that allows for the operation of a customer-centric business with efficient supply chain management.

Issues:
The proposed research paper will cover the following issues:

• Power to Size Ratio, Highest Order: Every Indian logistics organisation has struggled with acquiring a huge number of orders at once while trying to meet client needs and preserve their supply chain position. It can be difficult to prioritise requests due to the high volume. Payment times are inconvenient for any size firm. Festival season is the best illustration of an ETA failure.
   
• Generalist and Specialist Shortage: India's logistics business lacks qualified people. Overworked and underqualified staff hinder production. Cash-strapped companies cut logistics personnel training and pay. These businesses will eventually face high staff turnover, escalating training costs, and underutilized human resources.
   
• Lack of Efficient Redressal Mechanism: When two companies are involved (an E-commerce company and a logistics company) in the completion of placing and delivering a product then there is a high chance of an inefficient redressal mechanism. There are companies which are unable to update the status of delivery on their site and hence, the customers face a lot of issues in returning or tracking their consignments.
   
• Lacklustre Rate of Innovation: High-productivity nations like Japan use state-of-the-art supply chains and logistics to maximize productivity. Indian logistics companies that don't use modern technologies risk falling behind. When making these investments, the company should think broadly. Many Indian logistics organisations may be unwilling to push for this transition if the returns don't completely recoup the cost of a technical improvement.

Objectives Of Research Paper
The objective of the proposed research paper is to observe the expansion of 3PLs in the last decade and how it is becoming synonymous with e-commerce. The paper also covers the basic functioning of 3PLs and what challenges are faced by this industry and can be faced by it with the increase in the number of customers on e-commerce platforms and with the increase in e-commerce platforms as well.

The paper will also touch upon the lack of redressal mechanism because of the involvement of a third-party and finally, the paper will also talk about the lack of laws in case of mismanagement or fraud by the third-party logistical services which puts the complete onus on e-commerce platforms.

Research Methodology
The researchers will use the doctrinal methodology to analyse the various aspects of third-party logistics services and its related issues discussed above. Discussions and opinionated articles of numerous experts in the field on e-commerce and third-party logistics will be crucial to the effectiveness and relevance of the research paper. Further, the researchers shall endeavour to use the non-doctrinal methodology to collect data from the general public about their experiences of using various e-commerce sites which provide for 3PL service and what positive and negative aspects they've experienced.

Moreover, the research paper will also include various case studies of e-commerce sites which use 3PL services (such as Flipkart, eat club, etc.) and which do not use 3PL services (such as Amazon, swiggy, zepto, etc.) and what issues are being faced by both types of companies.

Expected Outcome / Conclusion Of Research Paper
The proposed research paper will dive deep into the little-known aspects of third-party logistics and how a lot of small enterprises are blooming because of the presence of 3PLs but at the same time delve into the aspect of various issues and challenges that are faced by the customers as well as the third-party logistical services.

With the help of this research paper, the readers will be able to understand the close-knit connection of e-commerce platforms and third-party logistical services and how such outsourcing of a specific function has become very dominant today yet the lack of certain mechanisms for its better functioning shall all be addressed by this research paper.

Thereafter, the researchers shall conclude by providing some suggestions that could be implemented in the e-commerce and 3PL industry which would help the companies as well as the consumers to have an even better and smoother experience while using any e-commerce platforms which outsource their logistics services.

References & Bibliography:

1. Meng Zhao, Cornelia Dröge, Theodore P. Stank (2001) "The effects of logistics capabilities on firm performance: customer-focused versus information-focused capabilities".
   https://www.researchgate.net/publication/229708340_The_Effects_of_Logistics_Capabilities_on_Firm_Performance
2. Jay Joong-Kun Cho, John Ozment, Harry Sink, (2008) "Logistics capability, logistics outsourcing and firm performance in an e-commerce market".
   https://www.researchgate.net/publication/235286795_Logistics_Capability_Logistics_Outsourcing_and_Firm_Performance_in_an_E-commerce_Market
3. JLL. (2013). E-commerce booms trigger transformation in retail logistics. White Paper, Jones Lang Lasalle. Aldin, N. and Stahre, F., 2003, "Electronic commerce, marketing channels and logistics platforms – a wholesaler perspective", European Journal of Operational Research, Vol. 144, pp. 270-279.
4. India's e-commerce sector to see $120 billion revenue by 2020: Assocham-Forrester report, The Economic Times, (May 8, 2016).
   http://economictimes.indiatimes.com/industry/services/retail/indias-e-commerce-sector-to-see-120-billion-revenue-by-2020-assocham-forrester-report/articleshow/52172120.cms
5. Feng Yaping, 2018, "Third Party Logistics in E-commerce environment", Savonia, pp. 14-37.
6. Liu H T, Wang W K. An integrated fuzzy approach for provider evaluation and selection in third-party logistics. 36,3(2009).
7. IThinkLogistics.
   https://ithinklogistics.com/blog/major-challenges-faced-by-logistics-companies-in-india/
8. Globalia Logistics Network.
   https://www.globalialogisticsnetwork.com/blog/2021/10/07/e-commerce-and-logistics-how-the-logistics-industry-is-changing-due-to-the-rise-of-e-commerce/

Written By:

• Anshika Jain, BA LLB, H, 9th Sem - Amity Law School, Madhya Pradesh &
• Shreya Kaul, BA LLB, H, 9th Sem - Amity Law School, Madhya Pradesh