Startup Guide: How to Choose the Best Logistics for Your D2C Startup?

Direct-to-consumer (D2C) selling is a relatively new, fast-growing niche, which has been showing double-digit growth figures over the past few years.  Before the pandemic, it was predicted to grow at a rate of 19.2%. Now, with the coronavirus crisis boosting the e-commerce sector, this niche is expected to grow even further. Thus, leaving large to small D2C brands to handle an unprecedented volume of orders in the upcoming years.

However, customer expectations regarding order delivery have been increasing simultaneously. E-commerce giants have made two-day, next-day, and same-day deliveries common phenomena in urban areas. This has made it harder for D2C brands to keep up. This makes it important to collaborate with a third-party logistics (TPL) provider to provide seamless shipping experiences to their customers.

With a 3PL provider, D2C brands can outsource some or all aspects of the supply chain/logistics process. Today, for the ones with growing businesses, teaming up with an efficient logistics provider is necessary to bring down the logistics costs while fulfilling the ever-increasing customer expectations. But, as an owner of a D2C startup, how do you choose the best logistics for your brand? This guide is here to shed some light on it.

Here’s what you need to look for your D2C Startup in a logistic provider:

Automated Tracking Updates

A logistics software that offers automated tracking updates regarding their orders is essential for your business. All customers appreciate clarity about the status of their orders. If your brand can provide that, they’ll be much more likely to make repeat purchases.

Estimated Delivery Date (EDD)

Besides providing order status updates, giving customers an estimated delivery date will increase the number of successful deliveries. As customers get an idea about the time the product is likely to arrive, there will be fewer instances of them being unavailable at the time of delivery, and you pay the price for return orders.

Transparent Shipping Cost

Online shoppers tend to change their minds when they see additional shipping costs, taxes, and fees when they’re about to checkout. If they can see the shipping cost at the time of buying, they know exactly how much they're paying for the item. With increased clarity regarding their purchases, they will be less likely to abandon their cart or cancel the order; thus, increasing your rate of conversion.

Multiple Courier Partners

E-commerce logistics aggregators with multiple courier partners integrated with their platform can help you optimize your logistics management and cost. With so many couriers at your disposal, you can choose what’s best suited for the requirements of each shipment or according to your customer’s preference. You can also choose the service that offers the cheapest rate or the one with the fastest delivery time.

Wide Range of Serviceable Pin-Codes

A third-party logistics provider with many courier partners, you can have access to a wide range of pin codes, leveraging the reach of multiple courier companies. So, you can deliver your products anywhere across the country. This will increase your sales and expanding your customer base in the process.

Website Integration

Website integration helps you ensure a smooth and hassle-free fulfilment process. APIs synchronize your website’s data with your orders, eliminating any possibility of loss. A logistics provider with easy to integrate APIs becomes crucial for your business.

Successfully carrying out the order fulfilment process, from sourcing raw materials to directly delivering products to doorsteps is the premise of direct-to-consumer selling. So, logistics can make or break a D2C brand. If your brand is to stand out against the ever-increasing competition in the e-commerce world, having a reliable and efficient logistics and shipping solution remains key.

Indranil Nath, Senior Vice President - Supply Chain>