E-commerce Shipping in India: A Complete Guide
Introduction
E-commerce shipping in India has experienced remarkable growth, driven by an expanding online shopper base and the rapid evolution of logistics infrastructure. India’s online shopper base is projected to reach 427 million by 2027, up from 300 million in 2020. Consequently, the Indian e-commerce logistics market is expected to grow from $4.42 billion in 2025 to $7.85 billion by 2030.
Needless to say, businesses and consumers are embracing online shopping in a big way. Shipping is a crucial aspect of e-commerce that many sellers tend to pay less attention to. While a great shopping experience is vital, timely and cost-effective delivery is equally important to ensure customer satisfaction.
Superior e-commerce shipping starts with understanding the basics. We’ll dive into everything you need to know about e-commerce shipping in India — from types of shipping, key players, costs, and top shipping software to streamline the process.
Types of E-commerce Shipping
There are various shipping options to choose from, each suited to different business models and customer needs. Here are the most popular types of e-commerce shipping:
- Standard Shipping
Standard shipping is the most basic and economical shipping method, where packages are delivered within a standard time frame, typically taking a few days to a week. This shipping option is often the default for many e-commerce businesses because it balances cost and delivery time. It’s the most affordable shipping for online sellers but not the fastest. Delivery time is usually between 3-7 days.
When to use:
This is the go-to option for most e-commerce businesses, especially when cost-efficiency is a priority. It’s perfect for non-urgent deliveries where customers don’t mind waiting a few days for their packages. Ideal for businesses with low-margin products or bulk sales.
- Express Shipping
Want to impress your customers with quick delivery? Express shipping is the way to go. It guarantees faster delivery, typically within 1-3 days, but can be more expensive.
When to use:
If you need to meet customer expectations for speed or if you’re selling high-demand products, this is the way to go. It’s best used for customers who are willing to pay extra for quicker delivery or for businesses that need to ensure their products arrive in a timely fashion.
Check out ShipDelight’s Express Delivery Solution for your business. From same-day to next-day and quick commerce deliveries…we can handle them all!
- Same-Day Delivery
As the name suggests, same-day delivery allows customers to receive their orders on the same day they place them, often within hours. Considered a premium service, it’s usually available in major cities and is an excellent option for urgent or time-sensitive purchases. In metropolitan areas, by offering same-day delivery e-commerce businesses can set themselves apart from their competitors.
When to use:
This is ideal for businesses in major metropolitan areas and when you want to offer a premium service to your customers. Great for food delivery services, electronics, or anything time-sensitive that could benefit from immediate gratification.
- Hyperlocal Delivery
Here, deliveries are made to customers within 15 minutes from the time the order is picked up. Hyperlocal is part of the quick commerce model, in which mini warehouses called dark stores are set up locally to help deliver customer orders in less than 30 minutes.
When to use:
Hyperlocal deliveries are best for emergency and last-minute purchases that need to be delivered fast. The delivery method is best used for food, grocery items, and daily needs products, though companies are now adopting quick commerce to sell clothes, cosmetics, and even electronics. Hyperlocal logistics providers typically have mini-warehouses in various localities to facilitate fast deliveries.
- Cash on Delivery (COD) Shipping
COD is still a popular payment option in India. Shipping providers often handle COD delivery, where customers pay for their goods at the time of delivery, which adds a layer of convenience. The delivery time varies depending on the shipping method chosen—standard, express, or hyperlocal.
When to use:
In markets like India, where COD is popular, this option is highly suitable for businesses targeting customers who prefer to pay at the time of delivery rather than upfront. It’s great for customers who are hesitant to make online payments, have a lack of trust in digital transactions, or would like to examine the product before paying for it.
Customers prefer COD. We can help you keep the process simple and streamlined with our Cash on Delivery Solution.
- International Shipping
For businesses selling abroad, international shipping is a must. It involves additional complexities, such as customs clearance and international shipping regulations. Delivery time is between 7-14 days or longer depending on destination and customs processes.
When to use:
Use international shipping when you’re expanding globally and want to reach customers beyond your home country. It’s great for e-commerce businesses looking to tap into global markets. Be mindful of shipping restrictions, customs duties, and taxes when using this option.
- Free Shipping
Free shipping is a promotional strategy where the business absorbs the shipping costs, offering delivery at no additional charge to the customer. Businesses often include free shipping as a perk or as part of special promotions like discounts or minimum purchase thresholds.
When to use:
If you’re offering a promotion or want to enhance the customer experience, free shipping can help drive more conversions. It’s typically used to entice customers to complete their purchases or to reward loyal buyers. However, the cost of shipping should be factored into product pricing. You can also offer free shipping for returns and exchanges, especially for damaged goods, as a way to correct a negative customer experience.
- Flat Rate Shipping
Flat rate shipping means customers pay a fixed shipping cost regardless of the weight, size, or destination of their order. One of the main flat-rate shipping advantages is that this pricing model is simpler for businesses to manage and can be appealing to customers as they know exactly what they’ll pay for shipping. Delivery time depends on the chosen delivery timeframe—standard, express, same-day, and so on.
When to use:
Flat-rate shipping is useful when you want to simplify your pricing structure for customers. It’s great for businesses that sell products of various weights or sizes, as it provides transparency and predictability. Customers love knowing upfront what they’ll pay.
- Scheduled Delivery
Scheduled delivery allows the customer to pick a specific date or time window for their delivery. These deliveries are scheduled according to the customer’s preferred window.
When to use:
This type is suitable for high-ticket items (furniture, appliances, etc.) or for e-commerce businesses that want to provide a more tailored, customer-centric service. Customers choose a specific time window for delivery based on their availability, offering convenience and flexibility.
- Crowdshipping
Crowdshipping is a relatively new logistics model where individuals (often freelancers or gig workers) help deliver packages. It leverages the power of the gig economy and is typically used for last-mile delivery in urban areas. The crowdshipping logistics model is often used for smaller, local deliveries. Delivery time can be same-day or next-day delivery, depending on local availability.
When to use:
For businesses looking to capitalize on the gig economy, crowdshipping is an option where local individuals (often using their own vehicles) help deliver packages. This is suitable for small, local deliveries in urban areas, particularly for last-mile delivery.
- 11. Drop Shipping
Drop shipping is a business model where the seller doesn’t keep products in stock. Instead, when a customer places an order, the seller forwards the order details to a third-party supplier, who then ships the product directly to the customer. The seller never physically handles the product. Delivery time varies depending on the supplier but often takes longer due to reliance on third-party vendors.
When to use:
Drop shipping is ideal for businesses that don’t want to keep inventory. Instead, when an order is placed, the product is shipped directly from the supplier or manufacturer to the customer. It’s suitable for new e-commerce businesses looking to minimize risk and upfront costs.
- White Glove Delivery
White glove delivery is a high-end service that involves special handling, packaging, and delivery of delicate or expensive items. It typically includes delivery, unpacking, setup, and removal of old items. Scheduled at a time convenient for the customer, white glove delivery for premium products usually takes 1-2 days after purchase.
When to use:
This premium service is perfect for high-end or delicate products that require special care during delivery. It’s suitable for luxury items, high-value electronics, or heavy appliances. Customers will often appreciate the extra care and attention to detail.
The Key Players in E-commerce Shipping in India
When it comes to shipping, you can’t go far without collaborating with reliable logistics players. Here are the top logistics companies for online sellers in India:
- Blue Dart
As one of the oldest and most established logistics companies in India, Blue Dart is known for its reliable and swift delivery services across the country and internationally. - Delhivery
A fast-growing logistics company, Delhivery offers an integrated suite of services, including warehousing, fulfilment, and transportation. They provide flexible shipping solutions tailored to the needs of e-commerce businesses. - India Post
If you’re looking for affordable shipping, India Post is a great option, especially for smaller packages. They offer various services, including regular and express mail. - Xpressbees
Xpressbees has a robust network across India, providing solutions for e-commerce businesses with affordable, reliable, and fast deliveries. They also offer services like COD and reverse logistics. - Ecom Express
Known for its efficient delivery and cost-effective services, Ecom Express specializes in last-mile delivery, which makes it a go-to option for many e-commerce retailers. - ShipDelight
ShipDelight is a courier aggregator that has partnered with over 27 leading courier partners, servicing over 27,000 pin codes nationwide. Apart from courier and shipping aggregation, they provide businesses with useful solutions for order, inventory, warehouse, and post-purchase management. In effect, ShipDelight provides end-to-end logistics solutions for e-commerce and omnichannel businesses.
Read this blog to learn how you can negotiate the best rates with your courier partners.
Understanding E-commerce Shipping Costs
Shipping costs can have a significant impact on your profit margins. It’s essential to know how these costs break down, so you know how to reduce shipping costs in e-commerce. Here are the primary cost factors involved in e-commerce shipping:
- Shipping Rates
This includes the cost of transporting goods from your warehouse to your customers. It varies depending on the size and weight of the package, the delivery method, and the distance. - Packaging
The type of packaging you use also contributes to the overall cost. While you want your products to reach your customers in good condition, choosing the right packaging that’s both affordable and protective is crucial. - Insurance
Shipping insurance for online orders is optional, but it’s often worth considering for high-value items to protect against damage or loss during transit. - COD Fees
If you offer cash on delivery services in India, shipping partners typically charge a small fee for this service. It’s important to factor this into your cost structure. - Reverse Logistics in E-commerce
If a customer wants to return a product, reverse logistics costs can add up. Returns are a normal part of the e-commerce business, so it’s essential to account for this potential expense.
Wrapping Up
Online businesses cannot make it without e-commerce shipping. There are various aspects to making e-commerce shipping efficient—from choosing the right type of shipping to collaborating with reliable logistics partners and investing in the right shipping software. Every detail counts. By understanding these elements, you can make informed logistics decisions that improve operational performance, reduce costs, and offer a superior customer experience.
Whether you’re a new entrepreneur or an established e-commerce player, optimizing your shipping strategy can set you up for success in the growing Indian market.
ShipDelight is an award-winning logistics technology company. We offer software platforms and solutions to cater to B2B, D2C, and Retail businesses. Get in touch with us to discover how our E-commerce Shipping Solution can help your business.
