Blog

Third-party logistics (3PL) providers have become indispensable partners for the burgeoning direct-to-consumer (D2C) market in India. Their seamless logistics integration and exceptional customer service are driving unprecedented growth and efficiency for early-stage D2C brands. By offering comprehensive and integrated services, these providers ensure that brands can focus on their core business activities while leveraging advanced logistics infrastructure.

D2C Market Trends

The D2C market is rapidly growing due to three major trends:

Premiumisation and Massification: Consumers are increasingly seeking premium products, leading to a broader market reach for D2C brands.

Channel Convergence: Brands are expanding from niche markets to broader audiences, including quick commerce and physical stores.

Surge in Shipments: D2C shipments have skyrocketed from approximately 0.1 billion in 2019 to 0.6 billion in 2023.

Outsourcing Logistics: A Strategic Move

With the rise of D2C brands, there has been a significant boost in the growth of 3PL providers. Brands are increasingly outsourcing logistics to concentrate on their main business activities. Instead of relying solely on aggregators, early-stage D2C brands are now partnering directly with 3PL service providers due to their customised solutions approach.

Delhivery: Leading the Pack

Among 3PL providers, Delhivery has emerged as a preferred partner, especially for early-stage D2C brands. Delhivery stands out by offering superior customer experience and a full-stack solution that addresses all logistics needs. This has made it a go-to choice for brands looking for reliable and efficient logistics partners.

Insights from Redseer Strategy Consultants

According to a recent report by Redseer Strategy Consultants, the logistics landscape for new-age D2C brands is evolving rapidly. The report highlights the significant growth in D2C shipments, which are expected to reach USD 2.2-2.7 billion by 2028, growing at 35-40% year-on-year from 2023 to 2028. This growth is largely attributed to the services provided by 3PL providers.

Customised Solutions for D2C Brands

3PL providers offer tailored and comprehensive end-to-end logistics services, including warehousing, inventory management, shipment intelligence, and transportation. These services are crucial for young brands that can now access advanced logistics infrastructure without significant capital investment.

Technological Advancements and Innovations

3PL providers, like Delhivery, are investing heavily in technology and infrastructure to meet the evolving needs of new-age D2C brands. Some key innovations include:

• Accelerated delivery times and real-time tracking
• Predictive analytics for returns
• Seamless cash-on-delivery (COD) solutions with swift remittance
• Integrated logistics and supply chain solutions for offline market expansions
• Consistent service levels and personalised account management
• The Importance of Customer Experience

Delhivery has outperformed its competitors in providing superior customer experience and features. By offering a full-stack solution, Delhivery ensures that early-stage D2C brands can focus on scaling their business while relying on a trusted logistics partner.

Third-party logistics providers are integral to the growth and success of new-age D2C brands. By continuously innovating and addressing the unique needs of these brands, 3PL providers like Delhivery are fostering long-term partnerships and helping brands thrive in the competitive market.