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Logistics providers for e commerce startups
  • What are the best logistics solutions available for e commerce startups?

    On one side, there are established logistics companies(BlueDart, FedEx etc) who provide good service but are too expensive for many startups.

    On the other side, there are smaller companies focusing on e commerce logistics(chhotu, gharpay etc) who offer better pricing.

    Is the better service and larger reach of established logistics companies worth the extra money?

    What are the criteria that a startup needs to look at to pick the ideal logistics provider?
  • 15 Comments sorted by
  • Dear Thaiagarajan, if the commodity are books and are regularly shipped through domestic, then try to get connection with professional courier, who might charge less and ship to any location with in less than a week depending upon the distance and coverage area.  after professional you can deal with DTDC, which might cost you little bit more but it also has complete country coverage.  to ship to remote areas and smaller village any how you got Speed Post Option with India Post

      The Reason to prefer is simple, we are into manufacturing part and we have to send samples to suppliers or receive samples from suppliers on regular basis, so i use professional courier and if in any area professional courier not covered then i go with DTDC which is like just few rupees more. if that also failed then speed post.

        One more important thing is that, these couriers wont intimate you that the courier despatched to receiver in time like that, you have to check on regular basis to see the tracking status.. and coming to billing, both professional and dtdc will give you monthly statement and you can check with your way bills that every thing is correct or not and then go ahead with the payment

     Professional courier charges per KG :  With in Andhra Pradesh : 20/- , Metro and State Capitals: 35/- , Southern Zone States : 45/- , Eastern Zone: Surface:60/- Air: 90/- ,  Western and Northern Zone: Surface : 50/- Air, 80/-  

       DTDC :  2 Kg or Below 2 Kg :  Andhra Pradesh State : 40 ,  Metros : 60/- , South India : 40/- ,  Rest of India : 60/-


         I Got these quote and they are reasonable for my business, but you might get better than these or rates more than these. for a startup, we have to stay with low rates and at the same moment we have to go ahead with good players who can deliver our goods.

        I Hope i cleared most of the thing.. let me know if i miss any part

    Thanks & Regards

    Sai
    Country Head www.greenjute.com
  • Chottu, Gharpay kinda initiatives have to be supported by start-ups.. It'd be win-win!!
  • @rocky :  You are right, but for a startup, you have to go ahead with them, if you go with bluedart or with TNT or with fedex local, it will cost you more. even fedex local wont give customer support that much.. i am experianced with 3 shipments from jaipur to hyderabad through fedex overnight express package.. all i have to go and pickup the goods, they wont come and drop to my location.and at every month end. they add some service charges to the total bill and that costs you little bit more.. I am right now using 99% Professional courier for my Manufacturing Process, all domestic process goes through professional courier and for emergency documents or samples i go ahead with DTDC.

       Suppose if i am in your position, i might hire a guy for 4 to 5000/- per month and his only duty is to take care of logistics. he has to check the options for each shipment. each route.. and other things relating to it..

    @Naghma :  Speed post works good, but coming to tracking its time waste.. one thing one can do is to call the receiver and ask him did he received the courier or not..

        For me most of the items come from chennai, if i want to send a small single zip puller weighs less than 200 grams to chennai it will cost 150/- . the next day delivery. professional  even for southern states they quoted more but they charge 20/-  and it will take 48 hours to deliver the sample to receiver.

       So as most of my hand bag parts come from chennai on regular basis i prefer professional as by the end of month i can pay the bill with out any tension

       Hope i covered little bit more, let me know if i am missing any thing

    Thanks & Regards

    Sai
    Country Head www.greenjute.com
  • Better start off with startups, if you do not need scale of big companies. ALways remember that no matter what happens to startups, some of these logistic providers will make it BIG, owing to focusing on solving a specific need - so while they are giving you affordable rates now, they will also move up when they grow up.
    Better to be with them when you/them are young?

    As far as criteria is concerned, its has to be SLA bound - i.e. look for companies who are providing you solutions w.r.t regional focus of your business.
    I am the founder of Pluggd.in.
  • Chottu.in - is only in NCR region as of now
    Gharpay does not solve the trust issues , since anyways it charges the money beforehand
    I am myself looking for a COD option pan india and looking closely at these companies but not sure how useful they would be

    Also would really help if someone can share what kind of bulk rates I can expect from estd logistics companies . Say , I give them a biz of 5 lacs to 10 lacs per month .


  • lets do one thing, let me know your location.. and also the purpose like only domestic you want to go ahead or with both Domestic and export. and also the commodities you want to deal with and the approximate weight range. so that i can try to solve your problem.

    Thanks & Regards

    Sai
    Country Head www.greenjute.com
  • Talk to Guys from DTDC, FirstFlight, BlueDart, Aramax, Professional couriers, etc. and try negotiating the prices with them. Few of them have COD option too.
    I build web :)
  • I need someone who can do surface shipping + collect cash on delivery .
    I hv tried Aramex , Bluedart and Quantium none of them do Surface shipping + cod .
    Anyone knows any company which does surface + cod .
  • @saipothuri Say for example Books are shipped. Domestic. Weighs from 500g to 1.5kg may ship around 50 items initially. Can you guide?
  • The prob with Professional Couriers or DTDC is that there customer service is pathetic . We started with these companies but every 1 in 8 delivery had an problem . If you plan to ship 50 items a day expect 3- 4 complaints per day . Also delivery time is higher ,so more customer service issue . 
    Now, 3- 4 customer queries look not that big but I tell you what 
    1. It will be impossible to scale 
    2. The customer complaints will keep adding up , as lack of transparency in proff,dtdc etc won't let you solve the prob . So, in the end you will find that a you are spending time and issue solving problems that are actually not yours . 


    If you try them out and are successful with them , please share the secret sauce . Because on the face of it ,it looks a very good proposition (low cost of delivery, I mean ) 


  • The usual model that most eCommerce companies in US and UK follow is a mix of the national postal services and courier companies. They will use the national postal service for the items that are not very valuable and are not for expedited service. They only use Courier where the item is high value and needs to be tracked or where the customer has paid more for an expedited service.

    Has anyone tried SpeedPost ? Does SpeedPost provide tracking?
    Naghma Ahmed, co-founder Giftsmill.com, an online shopping site for Books, Toys and Educational Toys
    Find Giftsmill on Facebook
  • @naghma Of course Speed Post offers tracking. Way far better in reach than any private courier services.
  • @sinha, So what are the startups in Bangalore which provide this service?
  • Speed post is the best . I have sent over 200 consignments using them and never got a complaint . 
    saipothuri  - Professional/DTDC may work for manufacturing , but they do not work in ecommerce , its not about customer service but its about customer experience. Poor logistics provider will never help you scale and most of the times one will be held up solving the problems of the logistic provider . 


  • @ Rocky:  Thanks for letting people know that speed post worked for you best. even we will try with them for sure .

        manufacturing is not all about clubbing things, its also has a part of dealing with ecommerce, we search for suppliers in various sites like alibaba, tradeindia etc etc and we request samples, even sometimes we pay for samples. once we request or pay for a sample, we look forward for touching it and putting it on work to make sure that that specific item will work out for us or not..

       One more thing i want to make sure is about location, for me mostly speed post wont work out, as i reside outside city. 

      your comment on professional / dtdc do not work in eCommerce is false.. lots of eCommerce companies small or medium depend on these couriers.  if speed post works for you good, then its good and from my top posts i never said that  speed post is a bad one.. i faced a problem with it and i just communicated with all that i faced a problem with it..

       from my past experiance i might know a little gap between customer service and customer experiance.

    Customer Service :  if you send a parcel to a customer, it has to reach in time and it has to communicate to both sender and receiver.. that solves the problem of sending the desired object to receiver in time

    Customer Experiance :  Customer experiance is all about how he used your product and he felt with it..


       Logistics comes under service sector and they just provide service in time between Sender and Receiver. 

      But sure please do intimate me that if speed post can provide monthly billing service, if  Yes then i can try it

    Thanks

    Sai
    Country Head www.greenjute.com

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