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E-Commerce Shipping in India: Reduce Costs & Increase Conversions by Delivering Faster and Better

  • Chaitanya
  • September 22 , 2025
E-Commerce Shipping in India: Reduce Costs & Increase Conversions by Delivering Faster and Better

Your customer in Patna wants the same 2-day delivery as someone in Pune, but at the same time, you already have almost no margin on a ₹799 kurti. If that's not all, the returns feel like a concomitant payment.

But here’s the good news: the smartest Indian D2C and e-commerce brands (the ones whose GMVs are silently punching in ₹100–500 crore) are not paying a heavy sum per parcel anymore!.

They have been successful in bringing that cost down while still being able to deliver in 1–3 days. How? We are going to talk about that today!


Think Bhopal, Guwahati, Salem, Raipur or some small taluka in Maharashtra you have never heard of. That is exactly where your next ₹10 crore in revenue is hiding. But only if you can ship profitably and fast!


Am I right about where you are now?

You jump onto your courier dashboard, and it’s red all over. You see RTO at 22%, typical cost per shipment ₹92, and half of your customer support tickets are “where is my order?”

Welcome to Indian domestic e-commerce logistics circa 2025!

The biggest headaches aren’t even the most obvious. It is slick stuff. Yes, we are talking about dimensional weight eating into your margins, reverse pickups being more expensive than forward shipping and that one pin code in rural Odisha where every courier in the land levies a ₹120 surcharge with nary a by-your-leave.

And returns? At the end of the season sale, fashion brands cry at 30–40%. That’s no longer a business; that’s a logistics charity!

But here is the silver lining! Although these problems seem to be humongous, they do come with a solution! And guess what? The industry leaders or the brands you are competing with are already implementing them!.


Stop Treating Couriers Like It’s 2018!

Most brands are doing it the traditional way, and yes, doing so does feel like being safer, but in the end, you’re paying 20%-30% more because none of them is really held accountable.

Winners use a core + challenger approach. Choose one strong national partner who can handle 60–70% of your volume (someone, anyone, who answers the phone), and have regional experts for hard-to-serve zones like NE/J&K/Himachal. For the rest, rely on surface alternatives for low-value purchases.

Give Customers Options (Yes, Charge for Speed - They’ll Thank You)

Free transport sounds so benevolent, but it is mutely murdering you.

Instead, try this at checkout:

  • Lightning (1–2 days): ₹99

  • Express (2–4 days): ₹59

  • Normal (4–7 days): Free above ₹499

You will be amazed at the number of customers who are pleased to pay ₹99 and receive your product before Friday evening comes around. Just like that, your “expensive” express shipments are paying for the free ones.

Packaging Hack that Saves Lakhs a Month

This is where I see most founders facepalm.

If you’re sending a 450-gram kurti in a 12×10×5-inch box, most couriers are going to charge you as if it’s a 1.5 kg package due to dimensional weight. 10×8×2-inch poly mailer for the same kurti? Billed at 500 grams.

That tiny tweak adds up to literally saving ₹40 - ₹60 per order!

We have witnessed ethnic wear brands reduce their average billed weight from 950 grams to tens under 600 grams simply by replacing corrugated boxes with poly mailers and training their packing team. That is lakhs of rupees saved annually on 50,000 monthly orders. Pro tip: make a “dimension police” shopping list. If you fill a box over a certain size, it will send you (a very friendly or not-so-friendly) reminder.

APIs Aren’t Optional Anymore

If you are still uploading Excel sheets or logging in to five different courier portals, I beg you to stop.

A good API integration works magic. It has auto NDR calling, WhatsApp tracking updates, fake delivery prevention, and branded tracking pages. Now clients can easily lower their “where is my order?” questions on WhatsApp tracking alone and enjoy the benefits!


Reverse logistics, in India at least, is where margins go to die, unless you fix it.

Here’s what the pros do:

Instead of a standard rate per parcel, they haggle bulk reverse pickups at a nice per kg rate. They instead consolidate all returns to the 2-3 mother hubs for rapid QC rather than having boxes sourced in 15 micro-warehouses. For lower-value orders, they offer pre-paid India Post return labels for a lower rate.

And hate but true, these brands have introduced ₹79 return shipping for non-quality issues. Results? Returns drop quickly! Policy remains crystal clear, and customers still dig it.


If all that sounds too complicated, consider the shortcuts: Try to make friends with someone who is built for 2026 Indian e-commerce and not 2015.

Velocity Express is truly one of the only delivery partners that is reliable and efficient to handle all these things.

20,000+ pin codes (yes, your customer at rural Chhattisgarh too), Same-day pickup in most of the cities, Single API that actually fucking works with Shopify or WooCommerce out-of-the-box!Transparent pricing, no nonsense handling charges or any other random surcharge and last but not least, reliable tracking! Yes, we found something that the customers really love linguists across.

Whether you are doing 500 orders a month or 50,000, we scale with you without pulling the rug out from under your feet when you do hit any major milestones (side-eyeing legacy players).


The world of e-commerce will continue to boom, and there will be a plethora of opportunities. However, cracking the code of smart and efficient logistics is one of the key battles to win if you wish to conquer the world of e-commerce.

The tips discussed above will surely help you gain a competitive edge and streamline your logistics. If you are looking to know the various options available to make your logistics arms more efficient, contact us now!

Now let's go ship smarter!


  • 1. How is the average e-commerce shipping cost decided in India right now (2025)?
    The average cost depends on volume, frequency, distance, weight and contents of the item.
  • 2. Is same-day or next-day delivery actually possible in tier-2 and tier-3 cities?
    Yes, but not with every courier and practically, not in every location right now. Partners like Velocity Express can offer same-day in certain cities and next-day in other tier-2/3 towns. The trick is routing express orders only to their network.
  • 3. Should I charge customers for faster shipping or keep offering free shipping?
    You can offer both. Give three clear options: Lightning, Express (2–4 days) and Standard (4–7 days). Brands that do this can see a rise in customers happily paying for speed, which subsidises the “free” ones and improves overall margins.
  • 4. How can I reduce returns and reverse logistics costs at the same time?
    You can do this in two ways. One is to charge customers a price for customer remorse (not quality issues). This reduces customer returns. The second is to switch to bulk reverse pickups and route everything to 2–3 mother hubs for quick QC.
  • 5. Poly mailers vs boxes. Will customers complain about packaging?
    99% of customers don’t care as long as the product reaches them undamaged. Use good-quality poly mailers with bubble wrap inside for fragile items.
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