It would be great if the ones who have arrived or at least boarded the e-commerce train could help me understand the cost structures around key logistics providers like Blue Dart, FedEx, and any others.
Blue Dart & Fedex are your profit margin eater.
try Aramex, First Flight, chhotu.in & delhivery for cost effective logistic service + COD collection.
You can negotiate good rates with Fedex (Their service is also good).
Aramex can also give you competitive rates.
would you know of any regionally strong players around?
thanks a lot vishal. are there any regionally strong players you would know of?
which region ?
logistic module purely depends on the kind of product & value of product required to be shipped.
domestically one needs to ship lower value items for which companies like first flight, aramax, Blue dart & indian postal services are good.
for international shipments based on the value fedex, UPS & DHL are good.
for regional players there are small local couriers who can offer wonderful services.
it is critical that COD for local shipments is being serviced through known & reputed ones as there are lot of misfires in long run if reconciliation is happening after long time.
for zonal offices of ecom companies people work with bulk shipments & then redistribution thus saving on cost but adding one grace day for shipments
For Domestic Economic : The Professional Courier, First Flight Courier , DTDC , India Post ( These cover even towns )
For Domestic Priority : Bluedart , Aramex , FEDEX DTDC Blue , ( Other than Bluedart and DTDC . The Other operators wont serve rural areas )
For International Regular Shipments : UPS , FEDEX , DHL
E Commerce is all about selling a product through online or purchasing a Product through online by using Online Banking Service and it might done from any where. so selecting logistics players also a crucial task. if a person orders from a town will Fedex will deliver? or Aramex can do ?
Bad thing is that people even now thing E Commerce is for Cities and Metros and not for other parts of country and that's really a bad thought and that's the reason most E Commerce companies are winding up now a days
Listing below approximate rates of some of the more popular domestic courier services. Hope it helps.
1. Blue Dart:
Rates: Approx. Rs. 55 – 75/500gms, depending on serviceable area
COD: Approx. Rs. 80 or 3% of the invoice value, whichever is higher
PS. The rates mentioned above are extended especially to Zepo users. The rates may differ as well as their policy or minimum commitments for others.
Rates: Approx. Rs. 60/ 500gms, depending on the deliverable area
COD: Min. charge of Rs. 75/ 500 gms or 4% of the invoice value, whichever is higher
3. India Post:
Rates: Rs. 30-90/ 500gms, depending on the distance from your location
COD: Offered as VPP and the charges applicable are Rs. 25/ order
4. FedEx (Domestic Services):
Rates: On an average, Rs. 32 – 72/kg or Rs. 70 – 148/kg, depending upon serviceable area and type of service
COD: Approx. Rs. 250 on waybill amount
Also, adding a little more value to the answer; if you are looking for a review of some of the popular logistics providers, you can check it out here: Review of Domestic Courier Services for eCommerce Businesses