The report underscores the critical role of third-party logistics (3PL) providers in the phenomenal growth of India’s D2C market. Delhivery is positioned as a key partner for early-stage D2C brands seeking a superior customer experience and comprehensive logistics solutions. These solutions encompass real-time tracking, efficient returns management, wide delivery reach, and seamless integration with online marketplaces.

While Delhivery and Bluedart stand out on overall metrics among 3PL providers, the report highlights Delhivery’s particular appeal to early-stage D2C brands. The growth of D2C brands in India has been substantial, surpassing traditional retail markets. Annual D2C shipments have soared from 0.1 billion in 2019 to 0.6 billion in 2023. The market is projected to reach USD 2.2-2.7 billion by 2028, with an estimated growth rate of 35-40% year-on-year from 2023 to 2028.

The report emphasizes the critical role of 3PL providers in driving this D2C boom. By offering customized, end-to-end logistics solutions—including warehousing, inventory management, shipment intelligence, and transportation—3PLs enable young brands to bypass the need for substantial upfront investment in logistics infrastructure. Early-stage D2C brands increasingly partner directly with 3PL service providers due to their tailored solutions, rather than relying solely on aggregators. This has led 3PLs to innovate to meet the evolving needs of these new-age brands.

“Third-party logistics (3PL) providers are integral to the value chain of new-age D2C brands. They are continuously innovating to address the unique needs of these brands, fostering partnerships from the early stages of the brand journey,” said Kanishka Mohan, Partner, Redseer Strategy Consultants.

Redseer highlights that within the 3PL logistics landscape, factors such as brand and customer experience, along with operational efficiencies, are crucial for new-age brands when selecting their preferred partners. These metrics form a comprehensive framework for evaluating the suitability of logistics providers in meeting the essential needs of the D2C brands, with companies like Delhivery and Blue Dart delivering exceptional service across both experiential and operational dimension.

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Introduced earlier this year, the RTO Predictor is accessible to all D2C brands across various sales channels, including Shopify, WooCommerce, etc., irrespective of their chosen shipping partner. Brands can seamlessly integrate RTO prediction into the checkout process, allowing them to either conceal COD shipping or impose shipping fees on high-return-risk consignees.

Returns on cash-on-delivery significantly impact businesses as companies pay twice for logistics services without making a sale. COD orders constitute more than 60% of e-commerce orders in India. Delhivery’s RTO Predictor helps reduce RTOs by up to 20%, as claimed by the service provider. 

Nikhil Vij, Head of Product, Delhivery, said, “Dellhivery’s RTO predictor uses machine learning to assess the risk of return and non-acceptance of delivery that sellers face by analyzing the data already available from over 2.7 billion delivered shipments since the company’s inception. This enables the clients to predict customer behavior with far more accuracy and provide valuable insights. The technology helps brands understand the customer intent, particularly regarding their COD orders.”

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The company had earlier successfully scaled women’s participation in Tauru (Haryana), Bhiwandi (Mumbai), and other locations in India. Women already constitute 66% of the total workforce at the processing center in Tauru. Following the success of these centers, many more projects are in the pipeline.

Suraj Saharan, Chief People Officer and Co-founder, Delhivery, said, “We are very excited with the launch of this all-women hub at Sikar. In the last one year we have accelerated the recruitment of women in our team, with their headcount increasing by ~60% in FY24 as compared to ~15% in FY23. We are committed to providing a favorable and safe work environment, skills training, and the right HR policies to enable our women colleagues to succeed.”

At Sikar, women will be responsible for all functions, including administration, operations, and security. They will also be provided diversified opportunities in non-traditional roles like driving battery-operated pallet trucks (BOPTs), loading and unloading trucks.

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Plix has an existing collaboration with Delhivery for domestic express parcel shipping in India and has now extended an exclusive partnership for cross-border shipping as well. It will leverage Delhivery’s air freight expertise for shipments, ensuring swift and secure transportation of goods from its India warehouse in Mumbai to its New York warehouse.

Delhivery, a registered partner for Amazon’s global outbound parcel business, has emerged as a leading name in cross-border express and freight shipping for key Indian brands over the last three years.

Akash Zaveri, Co-Founder & COO, Plix, said, “With Delhivery as our international logistics partner, we are confident to plug efficiency leakages and make global shipping as predictable and time-bound as in the case of domestic deliveries. Seamless movement of goods is a key feature of a globalized world with a globalized marketplace.”

Vikas Kapoor, Senior Vice-President, Cross-Border Business, Delhivery, said, “Plix’s trust in us to handle both their international and domestic shipping needs is an affirmation of our performance and reliability in delivering comprehensive logistics solutions. We continue to help D2C brands capture the global markets through existing and upcoming global shipping products in both express and freight.”

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