Industry Odisha Bureau, Oct 14: Logistics providers are raising rates as labour and delivery costs climb. Festive volumes add pressure. Sellers may trim discounts, add delivery fees or raise prices later.
Logistics firms are raising rates as rising labour, warehousing and delivery costs bite. The pressure peaks during the festive season, when order volumes surge. E-commerce brands and sellers must now absorb the increase or pass it on. The impact will vary by business model, region and service type, executives said.
Blue Dart has announced a 9–12% increase across its domestic portfolio. The new rates take effect on 1 January 2027. Mumbai-based Emiza has already revised prices by 10–15% over recent months.
Emiza founder and chief executive Ajay Rao cited labour costs and staff shortages. LPG and fuel disruptions in April and May hit workforce availability, he said. Overtime and local hiring kept services running but raised operating costs. Statutory wage revisions in states such as Haryana added further pressure.
Quick-commerce logistics provider Zippee is weighing selective festive-season price adjustments. Founder and chief executive Madhav Kasturia said changes would depend on regional demand. Zippee assesses pricing by each client’s operational needs and cost structure.
Kasturia said last-mile delivery remains Zippee’s biggest cost pressure. Its network order volumes grew 4.5 times during the festive period. More orders demand extra staff, delivery resources and support.
For online sellers, logistics is already a large expense. It can make up 10–20% of total costs for some e-commerce businesses. That estimate comes from Aakash Agrawal, an associate director at Anand Rathi Investment Banking. The burden is heavier for brands with small orders and high volumes.
Brands competing on discounts, acquisition and delivery speed have little room to absorb repeated increases. Agrawal said responses will vary by category. Some brands may trim discounts, add delivery fees or raise minimum order values. Price rises are harder in apparel and electronics, where shoppers compare easily.
Sakksham G, who sells fashion and accessories on Flipkart and Myntra, is holding prices. He wants to avoid hurting demand during the festive months. From January, he plans 7–10% increases on mid-range products priced ₹800–₹1,500.
He prefers marketplaces because they bundle last-mile delivery with product listings. Fulfilling orders independently can cost more for smaller sellers like him.
Shiprocket is tracking courier performance to help sellers spot delivery risks early. The aim is to reduce return-to-origin, or RTO, shipments. Atul Mehta heads the listed company’s domestic shipping division.
Mehta said reverse logistics costs ₹40–60 per shipment. Repackaging adds another ₹15–25 per unit. The effective cost per delivered order can then reach ₹85–110, he said. He estimates D2C brands lose over ₹8,000 crore a year to RTO.
Providers are turning to technology for efficiency. Emiza is expanding warehouse-management systems, automation and workforce planning. Shiprocket is extending RADAR, its predictive tool meant to ease network congestion.
Shadowfax shares have gained about 168% since its January listing. Delhivery fell roughly 13% over a year, and Blue Dart about 17%. Shiprocket traded near ₹134 on 12 October, above its ₹97 IPO price.
Agrawal expects firms to prioritise order profitability and fulfilment efficiency over volumes. Rising costs make reliable delivery central to that shift.
