This can help to understand about what is 3PL and how it works and how to choose best shipping partners for e-commerce business. lets have a look!

1. PART 1
Upskilling logistics team
Training new recruits
Creating shipping strategy
This ebook should be used for:

2. Introduction
1
2
3
4
5 8
13
19
What are 3rd
party logistics
partners?
How Do 3PLs Work?
Stages of Delivery
Mechanism
A comprehensive
list of 3PL shipping
partners in India
Most common
Logistics Companies
in India
Factors to determine
the best shipping
partners
Conclusion

3. Ecommerce Logistics is one of the most rapidly growing industries in India.
At the start of the 21st century when businesses like Flipkart and Amazon
first began to take off, traditional 3PLs were unable to keep up with their
shipping needs. This pushed them to create their own delivery infrastructure.
Flipkart, for example, started Ekart, which still operates today. Now, there are
hundreds of shipping companies equipped to handle ecommerce logistics. In
fact, ecommerce shipping is growing so fast, this sector is earmarked to
constitute 28% of the total logistics revenue in India by 2025.
Once an ecommerce company receives an order, it assigns a logistics partner
to handle everything from picking up the order from its origin warehouse to
transporting it to the customer safely. Businesses may also rely on 3PLs for
storage, both prior to an order being placed and during transit. Many
shipping companies also offer specialised services like weather-resistant
packaging options, cash-on-delivery (COD), and express delivery, among
many others.
Your knowledge of shipping partners can ensure your customers have a
satisfying online experience with you. With the help of experts and leaders in
supply chain management, we’ve put together this complete and
comprehensive guide to shipping solutions in India.
By the time you finish reading this article, you shall be an
expert at dealing with shipping partners.
Once an order has been placed, it goes through the various stages of
delivery, from manifestation and order pickup, to first mile, middle mile and
last-mile transportation. The final stages usually experience challenges that
fall under the categories of RTO (Return-to-Origin) and reconciliation.
Introduction
1

4. A 3rd party logistics partner (3PL) is essentially a company that caters to warehousing,
distribution, supply chain, and shipping management, essentially providing 1 or more
solutions in these fields.
The journey of 3PLs begins in the 1970s, prior to which retail businesses directly engaged with
suppliers for delivery. With a centralised distribution system in place by the 1980s (that would
eventually give rise to the hub and spoke model all 3PLs use today), the industry was ready for the
next decade which brought globalisation into the mix. At this point distribution centres expanded
to extend their reach to global sources. At the start of the 21st century, the internet brought with it
the ecommerce industry, a new playmate for the logistics industry that challenged it to optimise its
services and incorporate technological advancements.
So what exactly do 3PLs do? The main function of a 3PL shipping company is to handle end-to-
end order fulfillment. For most, that begins with receipt of inventory and provision of warehouse
storage. For some, however, this process largely begins after the goods are ready to be
dispatched. After 2 decades, with the development of additional services like COD coverage and
API integrations to automate order updates, 3rd party logistics has taken on a whole new league
of real-time tracking and optimal order fulfillment.
2
What are 3rd party logistics partners?

5. While the major work of a logistics partner lies in
shipping, there are numerous stages to this process.
The work of a shipping partner begins as soon as an
order has been placed (and sometimes prior, in case
they are handling storage of your inventory as well).
3PLs take care of the entirety of delivery functions.
They are responsible for picking up the goods from
the origin warehouse after an order has been
placed. They then ensure the order is safely
transported to its destination city. On arrival in said
city, they make the last mile of delivery to hand the
product over to the customer. In this phase of
delivery, 3PLs also bear the responsibility of taking
care of failed delivery attempts and RTOs.
Alongside this falls reverse logistics, the process by
which 3PLs ensure returned items make their way
back to the origin warehouse safely and are
restocked in the inventory.
How Do 3PLs Work?
3

6. While most ecommerce
companies manage their
own warehouse
operations, some
outsource it to 3PL
partners. This means that
everything from
managing stocks to
ensuring delivery is
handled by 3PL partners.
In this case, you would
need to supply your
shipping partners with
the necessary stock for a
specified period of time.
Most 3PL providers now
have advanced tech-
enabled systems that
notify them automatically
when orders are ready to
be dispatched.
Accordingly, an agent or
team is assigned to pick up
the order. Most courier
companies provide
shipping labels over APIs
and maintain a unique
AWB no. to track
shipments across their
complete lifecycle.
Once the order has been
picked up, the process of
transporting it begins.
Most 3PL companies
either maintain their own
fleet of vehicles or hire
them from another
corresponding service.
This can affect the speed
of delivery as well the
nature of the products that
can be shipped. A carrier
that maintains their own
fleet of trucks, for
example, would be better
equipped to move large
items like furniture than
one that rents typically
smaller vehicles to
complete deliveries.
The last mile of delivery is
the phase when an item is
en route to the customer,
usually from the in-transit
storage location. A
common exception in the
order fulfilment process is
failed deliveries (also
known as NDRs), i.e.,
where the customer is
unable to receive the item
on the first delivery
attempt. Is such cases,
multiple delivery attempts
are made and if the courier
company is unable to
deliver the order then the
product is returned to the
origin (RTO)
Numerous orders are
returned after successful
delivery for a wide variety
of reasons. In such cases,
an efficient 3PL company
will have a system to
accept return requests,
collect returned orders
and bring it back to the
company warehouse as
safely and as soon as
possible. Several shipping
companies also offer
doorstep QC (quality
checks) on pickup of the
returned items
5.RETURNS
4.LAST MILE
DELIVERY
AND RTO
3.IN-TRANSIT
1.WAREHOUSING
S
T
A
G
E
S
O
F
D
E
L
I
V
E
R
Y
M
E
C
H
A
N
I
S
M
2.ORDER
MANIFESTATION
AND PICKUP
4

7. A comprehensive list of
3PL shipping partners in India
While these are the main functions of any E-commerce logistics partner, there are
numerous nuances to the services offered by each of them. Much like how the mode of
transportation is selected and sourced can affect the capabilities of a courier partner,
factors like pin code serviceability and employee training can play a role in the
efficiency of each 3PL firm.
There are numerous factors that can determine what services a courier partner should
offer to be the best fit for your e-commerce company. Don’t worry, we’ll be getting to
those shortly.
Before that, here's a list of the most common e-commerce shipping partners in India:
5

8. 6

9. 7

10. For any small or large business, a good shipping partner (or range of shipping
partners) can spell out the difference between survival and success. These are the
carriers that e-commerce companies put their trust in to ensure that their promises to
their end customers are fulfilled in the best way possible.
Now deciding which shipping partner to place your faith in can be a daunting choice,
especially when you look at the myriad of options given above. Doubly so when you
realise that there are over 150+ shipping partners you can turn to in India for e-
commerce logistics. However, this task of selecting the right carriers can be made
easier by reviewing the pin code reach, shipping rates and specialised services
offered by different 3PLs.
For example, Shadowfax is a carrier that is well-sought after for its highly efficient
reverse logistics system. Some carriers specialise in providing services in specific
regions. Like Ecom Express, which maintains a stronger presence in Southern India. .
Specialisation of services can also be based on the type of product. Blue Dart is a
favorite among jewellery companies because it is well-equipped to handle high-value
products.
Keeping this is mind, here is your guide to the 10 most popular and common logistics
companies in India, determined based on reviews and expert opinions from supply
chain management authorities.
Most common Logistics
Companies in India
TOP TEN
8

11. 1. Delhivery
Delhivery is an Indian logistics company and
one of the largest and most popular one in e-
commerce. They handle logistics for 7,500+ e-
commerce businesses across India. They are
well-known for their on-demand delivery,
including next-day and same-day delivery
services as well as scheduled deliveries.
They also provide COD services as well as
reverse and exchange logistics. They are
equipped to handle a wide variety of goods
including dangerous, high value and
heavyweight items.
Express delivery, specialised
handling, cost-effectiveness
17,500+
2011
Parameters Delhivery
Pin Code
Reach*
Services and
Benefits
Founded In
2. EKart
EKart was originally created as a FlipKart
initiative and has grown to provide logistics
solutions to a multitude of other ecommerce
enterprises.
They have become especially popular because
of their low rates and provide express delivery
in certain areas. Same-day delivery is enabled
in 13 cities across the country, while next-day
delivery is available in 50.
They also aid in providing smooth reverse
logistics and returns management.
Parameters EKart
Pin Code
Reach*
Services and
Benefits
Founded In
Same day delivery, next day
delivery, COD services
3,800+
2009
3. Ecom Express
Here's another logistics company that provides
end-to-end ecommerce logistics services for some
major online business in India. They are a major
favourite for companies that deal with high value
goods like jewellery as they offer extra security
and surveillance services. They are operational
even on Sundays and public holidays, and
guarantee that express delivery orders will be
fulfilled within 72 hours from the order being
manifested. When it comes to returned items and
reverse logistics, they offer the service of doorstep
QC (quality checks) in addition to a guarantee that
the item will be returned within 72 hours.
Parameters Ecom Express
Pin Code
Reach*
Services and
Benefits
Founded In
27000+
COD services, security and
surveillance, 72 hour guarantee
2012
9
Source: Carrier Website

12. 4. ShadowFax
ShadowFax handles logistics for hundreds of
brands globally and domestically. They provide
both marketplace and warehouse pickups,
alongside in-transit storage options during the
first mile and last mile of delivery.
They offer hyperlocal delivery and express
delivery, and are well-known for their fast
delivery services.
They also offer cash-on-delivery services as
well as accept cashless payments for doorstep
deliveries.
Parameters ShadowFax
Pin Code
Reach*
Services and
Benefits
Founded In
On-demand pick-up, in-transit
storage, hyperlocal delivery
7000+
2015
5. FedEx
FedEx made a name for itself in the global
market before bringing its logistics services to
ecommerce businesses in India.
They are well-equipped with trained personnel
and top-of-the-line transportation services to
handle high value products, heavy or light
weight products and even dangerous goods
like dry ice and lithium batteries.
They also help with handling customs
clearances for cross-border and interstate
shipments.
Parameters FedEx
Pin Code
Reach*
Services and
Benefits
Founded In
19000+ in India, 220+
Countries globally
Express Delivery, Specialised
handling and security
1971 (2011 in India)
6. DHL
DHL is another established international
logistics company that operates expansively
across India. They have an extremely wide
distribution network to optimise supply chain
and logistics solutions both domestically and
globally.
They are well-liked among SMEs for their
warehousing services. Their well-connected
network helps them reduce the amount of
wastage that arises during the delivery
process and optimise their impact on the
environment.
Parameters DHL
Pin Code
Reach
Services and
Benefits
Founded In
220+ Countries globally
Express delivery,
customizable packaging
1969
10

13. 8. BlueDart
BlueDart is another global carrier with a
massive network of resources in India as well
as abroad. They allow you to give customers
the option of selecting their preferred delivery
date and time through scheduled and slot-
based delivery. You can also request
specialised services like automated and
computerised proof-of-delivery updates or
weather-resistant packaging for shipments.
When it comes to delivery payments, they
offer cash-on-delivery, online payment (both
prepaid and postpaid) as well as numerous
wallet options.
Parameters
Pin Code
Reach*
220+ Countries globally
35000+ in India, 220+
Countries globally
Express Delivery, COD, Co-
packaging, Bulk Shipping
Scheduled delivery, express
delivery, weather-resistant
1997
1983
Parameters BlueDart
Pin Code
Reach*
Services and
Benefits
Services and
Benefits
Founded In
Founded In
Aramex
9. Aramex
This UAE-based logistics provider offers niche
delivery services all across the globe. Aramex
India continues to operate after being acquired
by Delhivery.
They offer express delivery services for both
national and international shipments, including
express export and import.
In addition to that, they also offer core logistics
services like order tracking, order bundling,
COD, and co-packaging.
7. XpressBees
XpressBees came up at around the same time
as ShadowFax and continues to be a
competitor in the logistics game. They have set
up over 100+ distribution centres across the
country that coordinate with 2800+ offices to
ensure efficiency in delivery.
They provide express delivery for certain types
of shipments and cater to a wide variety of
products from pharmaceuticals to
heavyweight items like machinery. They are
also equipped to help in the completion of
customs clearances for cross-border deliveries
Parameters XpressBees
Pin Code
Reach*
Services and
Benefits
Founded In
13000+
Express Delivery, customs
clearance, connected network
2015
11

14. 10. Safexpress
Safexpress is an older Indian carrier with over
2 decades of experience in providing logistics
services to businesses, especially to
ecommerce businesses in the last few years.
They deliver to 1000+ different locations in
India and use GPRS-enabled smart devices to
ensure real-time tracking is available for all
deliveries. This also allows them to follow
optimal and accurate routes when it comes to
cross-border shipments They also offer
secured delivery services which culminate in
collection of proof of delivery immediately after
handing over the item.
Parameters Safexpress
Pin Code
Reach
Services and
Benefits
Founded In
31000+
Route Optimization, GPRS
Enabed tracking, secured
1995
12

15. COST
RETURNS
Factors to determine the best shipping partners
Reviews and
Track Record
Serviceability
Hidden Costs
and SLA Terms
Return
Management
Limitations
on CargoSize
and Weight
Added Benefits
Deliver
Speed
Freight Costs
RTO
percentage
Technology
Insurance
and Security
Specialisation
Delivery
Mechanisms
Proof of
Delivery
Stuck
Shipments
When you’re starting to integrate with
courier partners, there are many things
to consider. Orders may be placed in
droves but success is measured by
order completion and customer
satisfaction.
There are numerous factors that come
into play here, from the moment a
product leaves a warehouse till it is
placed in the customer's hands, like
safety of the product in transit, route
optimisation and speed of delivery. This
is where having trustworthy courier
partners can make a huge difference in
improving customer experience.
Selecting a courier service provider
requires these factors to be taken into
account, which are discussed below.
PROOF
13

16. 2. LIMITATIONS ON CARGO WEIGHT AND SIZE
It’s important to remember that different courier partners can handle different weight and freight capacities and
different modes of transport available for shipping. While the exact size and weight of shipments may differ, the
average size and scale of cargo being transported regularly needs to be considered. An ideal courier partner would
be one that is familiar with handling shipments of that size to the locations required. Some courier companies are
better equipped to handle larger products, while others may maintain a focus on shipping bulk orders of smaller
products. E-commerce businesses that sell heavier and bulkier products like machinery or furniture will have very
different shipping needs as compared to online merchants that deal in items like pharmaceuticals or cosmetics. For
bulky orders like furnishings, Delhivery and Gati are the preferred courier partners.
3. FREIGHT COSTS
In case you find multiple courier partners that are within your range of serviceability, shipping rates can help you
decide the best option. That isn’t to say, you should look for the lowest rates, but rather the best rates for the best
overall service. Rates can vary based on range of delivery, speed of delivery, size and weight of cargo, type of cargo,
final destination, etc. The question for any business owner then becomes: What are the most important elements of
the delivery for my customers? For example, if your business receives same-day delivery orders frequently, then the
most cost-effective option is to select a courier partner that specialises in same-day or express shipments or one
that does not charge exorbitantly for the same.
1. SERVICEABILITY
This is the base criteria that any courier partner must satisfy. Serviceability deals with 2 simple questions. Does this
courier company ship to your company’s desired locations? Can it handle the volume of orders your business
receives on a daily, weekly, and monthly basis? Some shipping companies pride themselves on reaching the more
remote areas of the country and the globe. Selecting a courier partner with a larger reach can also insure you for the
future, should your company decide to expand to other locations, both within the country and abroad.
COST
14

17. 4. DELIVERY SPEED
Customers typically expect deliveries within 3-5 days, after which they tend to get anxious. This can result in a high
number of cancellations and RTO (Return-to-Origin). With platforms like Clickpost, you can monitor delivery speed
for each delivery and receive a consolidated view of the causes and effects of slow delivery. Speed of delivery can
be affected by the training of delivery agents, warehouse and inventory management, choice of vehicle and
numerous other factors. Courier partners with more streamlined distribution networks will likely have a history of
speedy deliveries, and those will be ideal for you if speed is an essential part of your brand.
5. HIDDEN COSTS AND SLA TERMS
Some logistics companies charge extra for single-day or scheduled deliveries. Others may charge for different types
of services, even ones built into the distribution process. Hidden costs can pop-up unexpectedly, for fuel surcharge,
ODA (Out-of-Delivery-Area) or extra delivery attempts, among many others. In case of RTOs, e-tailers can end up in
a loss bearing the cost of shipping and refunding customers. An SLA between you and any service provider will
bring clarity and transparency to every transaction. Quality control, NDR response, speed of delivery, and most
importantly, penalties, can all be specified in an SLA. The goal of an SLA is to ensure that the burden of any misstep
made by the courier partner does not fall onto the shoulders of the e-commerce business.
6. SPECIALISATION
Carrier companies have gotten extra creative with their shipping solutions to cater to different industries. Depending
on the type of products being transported, some courier companies have specialised resources that enable easy
transport and the safety of a wide array of cargo. Similar to how some courier partners focus on bulk shipments,
different shipping companies can have their own specialisations, like express delivery, handling customs clearance,
transporting wet cargo like petrol, temperature sensitive, fragile, flammable, radioactive or high valued goods.
15

18. 7. SECURITY AND INSURANCE
Insurance and security can save any person or business from facing an immense loss. This goes doubly so in the
case of cargo transportation. Knowing that a certain standard of safety is guaranteed by your shipping agent will
reduce an immense amount of costs on damaged or degraded products. Many courier companies have high safety
standards and train their transportation professionals to handle items with the utmost care. For examples, online
jewellery companies, which ship high-value products, usually use Bluedart. Having a standard insurance plan with a
carrier can help a business avoid heavy losses.
8. DELIVERY MECHANISMS
This term essentially encapsulates the entire system used by any given courier company for regular shipments,
including storage, transport, and communication. Miscommunications between an online store, a courier company
and the customer can become a huge bone of contention for business owners. The delivery process starts from the
moment an item is ordered and picked up from the warehouse and continues until it is successfully delivered. How a
company trains their employees, in-transit facilities, the tracking platform used, and updates sent to customers fall
under this category and can impact every customer’s overall experience.
9. PROOF OF DELIVERY
Not all deliveries are successful, though many are updated as such. As a seller, you may become aware of the
problem only after receiving customer complaints. Having a strict policy and setup for communicating proof of
delivery can ensure that complaints made by customers can be easily verified. This will also hold delivery agents
accountable for the state of the product at the time of delivery. It is important to check with prospective shipping
companies what their existing method for communicating proof of delivery is, whether it's an automatic update or
photographic evidence.
PROOF
16

19. 10. RTO PERCENTAGE
RTOs can contribute to major losses, especially if the product is not returned in usable condition. RTOs also occur
more frequently in cases of delayed delivery or if a customer is having trouble tracking a product. Prior to selecting a
logistics partner, it helps to determine which courier partners have high numbers of RTOs on a regular basis. While
RTOs may not be completely avoidable, they can be reduced if NDRs (Non-Delivery Reports) are handled efficiently.
A standardised response system to NDRs can effectively reduce your RTO percentage, which is offered by unified
platforms like Clickpost. Efficiency in overall delivery and efficiency in completion of initially unsuccessful deliveries
are equally important.
11. RETURNS MANAGEMENT
Another important scenario that e-commerce businesses have to think of is orders being returned after successful
delivery. The end goal with a returned order is for the product to safely make it back to the storage facility or
warehouse it came from. A courier company with an efficient returns management system will play an immensely
important role in this long and tedious process. A time must be scheduled for pick up and the burden lies on the
courier partner to ensure the package retraces its steps to return to the business. An added bonus that integration
platforms like Clickpost can offer is instantaneous collection of customer feedback data, which can help improve
provision of services in the future.
12. STUCK SHIPMENTS
Customers can become increasingly frustrated to learn that their orders are being held at a warehouse or fulfilment
centre in another city or more annoyingly, in their own city. This could potentially make stuck shipments become a
much larger issue, instead of just an occasional problem. Stuck shipments can occur for numerous reasons, from
customs clearances to delay in pickup or vehicular difficulties. Monitoring the causes for stuck shipments can help
you select a courier partner that is equipped to overcome those specific challenges. Logistics Intelligence platforms
like Clickpost can help you monitor and compare your stuck shipments with multiple courier partners.
RETURNS
17

20. 13. TECHNOLOGY
Given that e-commerce businesses are heavily technology driven, courier partners, logistics companies and shipping
agents must do the same. API driven platforms can serve to increase delivery efficiency, streamline tracking of
orders, and also help in dealing with NDRs and reducing RTOs. An up-to-date courier company will be equipped
with tech that enables quick communication, regular updates on order status, and quickly receive customer
feedback.
14. ADDITIONAL BENEFITS
While these may not make the top of the list of criteria to look for in your search for the best courier, they still offer
amazing opportunities to increase efficiency and fulfil orders successfully. These can include storage, inventory
management, printing of shipping labels and aiding in customs clearance and cross-border formalities, depending
on what the logistics firm offers and what your requirements are.
15. REVIEWS AND TRACK RECORD
Numerous websites and forums provide regular reviews and insights on how different courier companies perform.
These can help you determine if they suit all your other needs and the criteria listed above. Many established
shipping partners have also spent many years creating a solid base in their area of specialization. Careful review of
their past performances will give you a clearer perspective of which courier partners will be able to provide you
fulfilment solutions customised to your business needs.
18

21. CONCLUSION
Every shipping challenge your company faces will likely be immensely complex. However, if you break
them down to clearly identifiable problems, like high RTO% in a certain area, low % of successful first
attempt deliveries, repeated delayed deliveries to a certain pin code, ODA orders, and false delivery
reports, you will be able to determine which courier partners you need to effectively address each
problem. We’ve attempted to break up the different facets of selecting a courier partner, first by showing
you the many options available to you, then providing you with a comprehensive list of the most popular
ones, and finally giving you an exhaustive understanding of the elements that will make or break your
business when it comes to shipping. This will enable you to make the best choice for your business
keeping in mind your company's specific needs and long-term growth
19

22. To learn more about ClickPost offerings, drop us an email at sales@clickpost.in
Should you have multiple shipping partners?
How to Negotiate with your shipping partner?
How to integrate with a shipping partner?
How to deal with shipping exceptions
Coming Up in Part 2:
and many more topics...