Delhivery hiked shipping costs for D2C brands by ₹4 on express and ₹2 on surface shipments. The move, effective September 1, squeezes D2C margins right before the crucial festive sales period. Smaller D2C players will feel this more acutely than established brands.
The rate hike follows Amazon and Flipkart's recent revisions to seller fees and cancellation charges. Moneycontrol first reported the specific increases, effective September 1, for Delhivery's D2C clients.
D2C brands now face immediate margin compression as they prepare for the upcoming Diwali and year-end sales. Analysts will watch Delhivery's Q3 FY24 earnings report for clarity on specific revenue impact and customer retention.
🇮🇳 Why This Matters for India
For direct-to-consumer apparel brands in Tirupur or FMCG startups in Indore, the added logistics cost could cut their already tight festive season profits by 1-2%.
The Take
Delhivery passing on costs reveals logistics inflation is no longer 'nominal' for service providers. The real pinch comes for boutique D2C brands who cannot easily pass on ₹4 per express shipment to their end customers.
Source:  YourStory ↗