Business · Companies · 1 hr ago

Rising delivery costs put pressure on Indian e-commerce firms

Rising delivery costs put pressure on Indian e-commerce firms

In India, logistics companies are raising prices as operating costs climb ahead of the festive season.

Blue Dart plans a 9–12% increase across its domestic services from 1 January 2027, while Emiza has raised prices by 10–15% in recent months.

Quick-commerce logistics provider Zippee is considering selective festive-season price adjustments in areas where demand and operating needs justify them.

Higher costs include labour, warehousing and last-mile delivery, with firms also facing temporary worker shortages and added staffing needs during busy periods.

Logistics can account for 10–20% of an e-commerce business’s expenses, leaving sellers with limited room to absorb repeated increases.

Online brands may rethink discounts, delivery fees and minimum order values to protect their margins, though responses will vary by business and product.

The sources do not specify a single industry-wide change, but say sellers are likely to reassess delivery choices and order profitability.

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What people are saying

Ajay Raofounder and CEO of Emiza
To maintain service continuity, we relied on additional overtime and local workforce deployment, which increased operating costs. Around the same time, statutory wage revisions in states such as Haryana also increased costs. These changes are being transparently communicated to our customers.
via Mint
Aakash Agrawalassociate director for digital and new-age business at Anand Rathi Investment Banking
With brands also competing on discounts, customer acquisition and delivery speed, there is limited room to absorb repeated cost increases.
via Mint