Shipping cost is a significant determinant that influences both profit margins and the scale of your eCommerce business operations. Logistics can prove to be tricky for new entrants in the world of eCommerce. With eCommerce gaining momentum in India, the logistics operations have also been picking up speed and have spread their operations all across the country.
While setting up an eCommerce business, it is essential to compare and calculate the price of shipping and gain an understanding of the industry standard.
Most of these courier services offer logistics services to over 19,000 pin codes in the country, and their courier charges depend upon the receiver’s address and the weight of the package.
The bigger your operations, the higher your chances to get the synergy of logistics and a lower rate for every package. It is essential to understand that since all delivery companies in India operate at different levels and vary in size and operations, each one of them has a different set standard for servicing their clients and customers.
Find below the rates offered by different courier companies across India to gain a better understanding of the best options available for your business.
The Department of Posts (DoP) has been operating in India for more than 150 years. Though the pickup and delivery period can prove to be beyond average, this delivery courier is the best one for companies that are just starting. Rates applicable to their services are Rs. 30-90, for a weight of 200 to 500 grams.
FedEx was established in 1989 in the Middle East and it started its operations in India in 1997 through GSP. It is headquartered in Dubai, UAE, and serves more than 220 countries and territories. It has a fleet of more than 86000 vehicles. This courier service provider provides a vast expanse of service across international destinations. It charges around 32- 72 INR depending on the area of pickup and delivery.
A commendable service provider for eCommerce sellers, the average DTDC courier charges per kg for delivery are slightly higher for courier services across India. The quality of services is also quite average. Now, they even offer door-to-door delivery services including last-mile delivery.
All in all, it can be concluded that shipping and logistics provided by couriers and their delivery services prove to be an essential component in deciding the profit margins that a business owner gets to keep in his pocket.
Delhivery is India’s one of the fastest growing logistics companies. It was established in 2011 and is headquartered in Gurugram, Haryana. It has a presence across 18000+ Pin Codes and 93 fulfillment centers. Delhivery charges 50 to 90 INR per 500 gm. It also has 80+ Fulfillment centers. The logistics company also offers real-time shipment tracking and multiple payment options.
Blue Dart began its service early in 1983. Over the years, it has delivered to over 55400 locations nationwide. Moreover, they also ship internationally to over 220 countries.
They offer many services including freight forwarding, supply chain management solutions, customs clearance processes, warehouse management solutions, express air shipping, etc.
Blue Dart has also begun B2B and B2C initiatives by partnering with the best portals in the nation. Their well-established extensive network in India ensures time-definite morning deliveries, indigenous tracking, space control, and more.
They have 85 warehouses across India to facilitate quick, efficient, and easy deliveries. The Blue Dart platform is also equipped with a price calculator to determine the charge for your parcel, making it easier to approximate the cost.
Are you looking for a trusted name in the courier industry? With a stellar reputation, DHL is one of India’s most popular courier service agencies. It is also extremely known for its international courier services. The company was established back in 1969 and it holds an extensive network in the nation.
Today, DHL employs over 600,000 people across 220 countries. It strives to bring the world together and its vast network allows it to provide many services to all types of businesses at affordable rates.
DHL has made substantial strides in its inventory management, tracking, and control technologies to improve its logistics operations. They effectively provide freight services via road, rail, air, and sea. DHL has everything from end-to-end supply chain management solutions to domestic and international parcel deliveries.
GATI is one of India’s premier supply chain management solutions and express distribution companies. It has been providing end-to-end logistics solutions and seamless tools for several years.
Founded early in 1989, GATI has expertise in both air and surface delivery solutions. It has the added advantage of having an extremely well-established and expansive network. It has nationwide access to over 735 distinct districts in India.
Today, GATI is a part of the Allcargo Group and offers end-to-end integrated logistics services in all verticals. It is preparing to grow and spread its network into global operations in over 180 countries.
From express distribution, supply chain control and management offerings, eCommerce solutions, freight forwarding, etc. GATI has several incredible services, making it one of India’s leading courier services.
Xpressbees is relatively new to the industry and was established in 2015. Despite its late entry, it has gained immense popularity as one of the best courier services in the country.
It started serving only a small number of cities in the nation but has gradually grown to become a delivery partner for the entire country. It provides complex reliable cross-border deliveries, B2B services, 3PL solutions, and other solutions. XpressBees is widely popular amongst eCommerce businesses for its brilliant B2B services.
XpressBees has grown and established a vast network covering over 20,000 pin codes nationwide. It has delivered over 3 million shipments through 3500 service centers and 150 hubs. It has a hardworking and dedicated team of over 28000 representatives with diverse expertise.
For delivery inside cities, XpressBees charges between Rs. 23 and Rs. 39; for intercity deliveries, the charges range from Rs. 70 to Rs. 80. For interstate delivery, the normal fee for packages up to 500 grams is between Rs. 150 and Rs. 200.
Aramex is originally based in the UAE. Being optimally located between the East and West enables it to provide effective and customised logistics solutions anywhere in the world. This allows it to effectively reach more businesses and consumers within India and globally.
Today, it is trying alternative sustainable solutions to facilitate global trade with a lower carbon footprint. Express courier deliveries, freight forwarding, logistics, eCommerce solutions, record management tools and services, etc., are some of their most popular services.
Aramex offers a calculator to help you estimate the cost of shipments.
Shadowfax is an Indian favourite due to its customer-centric approach. It hasinnovative logistics solutions that have transformed how products are shipped. It is a solution-based company that began in 2015. Shadowfax offers flexibility in its services and payment options. It has immense expertise in both forward and reverse logistics operations. The other services include warehouse pickups, real-time tracking, and air and land freight forwarding.
The delivery charges vary according to the type of service you choose, the distance to be covered, the weight of the parcel, etc. To help you with cost calculations, the couriers usually provide a shipping charge calculator on their websites.
| Courier Partner | Rate Calculator URL |
|---|---|
| Indian Postal Service | https://www.indiapost.gov.in/MBE/Pages/Content/Domestic-Speed-Post.aspx |
| FedEx | https://www.fedex.com/en-in/online/rating.html |
| DTDC | https://www.shiprocket.in/dtdc-courier-rate-calculator/ |
| Blue Dart | https://www.shiprocket.in/bluedart-courier-rate-calculator/ |
| DHL | https://express.dhl.ru/en/calculator/ |
| GATI | https://www.gati.com/shipping-cost-calculator/ |
| XpressBees | https://www.shiprocket.in/xpressbees-courier-rate-calculator/ |
| Aramex | https://www.aramex.com/ship/calculate-shipping-rates |
| Shadowfax | https://www.shiprocket.in/shadowfax-courier-rate-calculator/ |
These are the major factors that influence the courier charges.
This is the main factor that affects courier charges. It’s because the shipping location and distance determine the mode of transport, fuel charges, etc. Longer distances will require more fuel, which increases courier charges. Other factors go into the calculation of courier charges include the following:
When it comes to courier services, time is of the essence. Customers will want to receive their orders on time. The faster the better. 41% of global shoppers want to receive their orders within 24 hours, while 24% of shoppers want their orders delivered in less than two hours. But faster deliveries come at a higher price. Most courier services offer standard or express shipping. They will charge depending on the time it takes to complete the delivery.
Fuel prices directly affect the courier charges. The price of fuel is highly volatile. It changes quickly from time to time due to several factors, including geopolitical situations, natural calamities, etc. Sender’s location and the distance between the place of origin and destination also have a direct impact on fuel prices. The volatility of the oil market forces courier services to adjust delivery charges based on fluctuations.
The fragility of the freight also influences the courier and delivery charges. When choosing a courier service, consider whether the freight requires special attention, protection, and security. Some freight may also have special handling and packaging requirements. All these special requirements will increase delivery charges.
Insurance is not needed for all products. But for high-value products, it’s best to have insurance in place. It does not usually form part of delivery charges. You may have to pay an additional amount to insure your products. Though you’ll have to pay an additional amount for insuring your products during shipment, it can prevent you from losses and additional costs arising from damages. Insurance costs will vary depending on the freight value and type, coverage range, potential risks, and more.
The weight and dimension of your parcel also directly influence the delivery charges. The bigger and heavier the parcel, the more the courier charges. Heavier packages require more work and energy to transport. Since they need to be handled with more care, you’ll have to pay higher courier charges. Similarly, bigger packages will acquire more space on a vessel, making courier services increase the courier charges.
Customs duties are levied when you ship products globally. These custom duties are different for different countries. Thus, it becomes difficult for most courier services to ascertain the actual amount. You can always do your research to determine how much you’ll need to spend to ship products across international borders. In some cases, additional charges are levied at the time of arrival. These are often paid by the recipients.
All miscellaneous expenses are classified as surcharges. These are often hard to account for, and that’s why you should always have a margin to accommodate these additional expenses. Surcharges can come in several forms, varying based on several factors. Some of the most common delivery charges include the following:
You should choose a courier service based on the following factors.
This is the most important factor you should consider when choosing a courier service. Evaluate what logistics services they offer – standard, express, international shipment and whether these services match your business requirements. You should also consider from the point of view of expanding your business, like what logistics services you might need.
Ensure they cover all your desired locations whether domestically or internationally.
You cannot choose a courier service without knowing its pricing details. You should thoroughly enquire about the price. Compare multiple courier services if you have to. Read online reviews and determine whether they offer value for price.
A courier service’s turnaround time should be one of the biggest deciding factors. Though delivery times are dependent on different factors, the key is to know what matters most for your business. If you ship products with a 2-day expiration period, a 3-day turnaround time wouldn’t work for your business. Speed is an important factor here for deciding the right courier service.
Insurance should be an inevitable factor in deciding the right courier partner. Insurance not only protects your products but gives you peace of mind. Insurance may be available at a higher price but it can prevent additional costs arising from damages and losses. Make sure you inquire about the insurance coverage before you choose the courier partner.
As many as 91% of consumers actively track their orders, while 39% track them once a day, and 19% track them multiple times a day. So, you should choose a courier partner that offers an order tracking feature. Real-time order tracking will prevent your customers from doubting whether they’ll receive their parcel on time.
Lastly, you should consider whether there are any limitations on product dimensions. These restrictions on the size and weight of products you can deliver will vary from one courier service to another. You must make this consideration before you choose a courier partner. It’s especially important if you usually ship large products. Courier services use volumetric weight to determine the size and weight of the shipment. They consider it as the actual weight of your product, which helps them in determining the cost of shipment.
Here are some tips on how eCommerce businesses can reduce courier charges:
Negotiating is one of the best and most effective ways to reduce courier charges. It’s an intelligent eCommerce business fulfillment strategy. However, you’ll have to build strong relationships with people who influence the pricing of shipments. You shouldn’t hesitate to meet them in person. These connections can even lead to tailored solutions and more discounted services in the future.
When negotiating, you can highlight your shipping volume. It can help you get volume-based or bulk discounts. Reducing per package cost can be an extended benefit of these discounts. Remember not to overdo negotiations and make an agreement that’s beneficial for both you and the service provider. Lower courier charges may mean flexible delivery times or other conditions, etc. Understanding what’ll work for you is key.
Optimising your parcel’s packaging can result in significant cost savings. Efficient packing methods help you ensure that the parcel takes up no extra space than required. The courier service will charge you for the parcel’s dimensions and weight, and thus, understanding the difference between size and weight becomes crucial. Selecting the right packing materials, such as using padded envelopes instead of heavy cardboard boxes can drastically reduce shipping costs. Analyse how much the parcel weighs and then select a packaging option that’s minimal but still offers complete protection during transit.
This means aligning your shipping requirements to your carrier’s strengths. Different carriers will excel in different areas. For example, some carriers may offer cost-effective solutions for bulk or heavy packages, while others may extend the delivery time for reduced shipping costs. You can compare different options and their unique selling points. By regularly evaluating their costs and performance, you can pick a courier service that aligns with your logistics requirements. It will require proactive involvement on your part but it can lead to substantial cost savings.
You can buy packaging materials in bulk or at a discount to reduce the overall costs of shipping. You are more likely to secure packaging material at a lower, per-item cost when you buy in large quantities. It also helps you ensure more savings in the long term. As a seller, you can channel back these savings toward your customers by offering them discounts on shipping costs. You can also offer free shipping unless it becomes infeasible for you.
Reusing and recycling packaging materials is not only cost-effective but also eco-friendly. It’s a strategic approach that can help you significantly reduce shipping costs. The market for sustainable packaging materials is on the rise globally. Currently, it’s valued at almost USD 271.86 billion and is expected to exceed USD 393 billion by 2028.
When choosing the right delivery courier service provider make sure that you can keep your shipping costs in check and are also able to ensure the fast and secure delivery of your intended products to your customers. As your business grows and you begin to accumulate the economy of operations, your shipping costs per unit will gradually come down, bringing greater profits in your pocket. Logistics operations chosen by some of the big and reputed brands and eCommerce platforms in India reflect a trend that indicates that they have selected their own logistics services.
Many eCommerce giants like Amazon and Myntra operate through their own logistics functions, which is another way to save hugely on transportation costs and keep a significant part of your profits. But for those just starting their business, working with a shipping and logistics partner like Shiprocket is a must.
How can I calculate shipping costs beforehand?On Shiprocket, you get a shipping rate calculator that can help you calculate the shipping costs beforehand.
Are the COD fees charged separately?Yes, the COD fees are charged separately by all courier partners.
