The rise of low-ASP ecommerce networks — and why logistics will decide the winner

In 2023, as ecommerce major Meesho was putting together its ambitious plan to launch its own logistics network, Valmo, its senior leadership, led by CXO of fulfilment Sourabh Pandey, visited China to learn about low-cost ecommerce systems there.

What they saw was a highly “productive” ecommerce ecosystem built around scale and cost discipline. Platforms such as Pinduoduo had unlocked demand for ultra-low-priced goods by pairing fragmented suppliers with dense, distributed logistics networks that could efficiently move small parcels across the country. The express delivery backbone — largely run through franchise-led networks — was optimised not for premium service but for volume, throughput speed, and cost control.