Logistics company Delhivery announced on Friday a 'minor adjustment' to its pricing for clients. This decision was made against the backdrop of increased costs related to labor, fuel, air freight, and other network expenses.
The company responded to a report by YourStory, which had previously indicated that Delhivery raised delivery costs for D2C brands before the holiday season. According to Moneycontrol, an additional charge of 4 rupees was introduced for express shipping and 2 rupees for ground delivery starting September 1.
This move followed similar increases in commissions for sellers by major e-commerce players such as Amazon and Flipkart. Amazon modified fees for order cancellations and closures, while Flipkart introduced penalties for certain cancellation and delay instances during shipping.
In a statement, Delhivery emphasized: 'Due to the recent increase in labor, fuel, air freight, and other network costs, we are making a minor adjustment to our pricing for our clients.'
The logistics firm stated that thanks to its reach, network density, scale, automation, and operational efficiency, it manages to absorb a significant portion of the rise in external operating expenses.
The company added that 'the impact on customers remains lower than the overall increase in costs, which we continue to cover across our expanding network.' However, Delhivery did not specify which services or client segments are affected by these price changes.
Delhivery stated that it maintains a focus on keeping competitive prices for clients while continuing to invest in the scale and efficiency of its network. This price adjustment comes just before the holiday season, when e-commerce and D2C companies typically see a sharp increase in order volumes, placing additional pressure on logistics networks and delivery capacity. For D2C brands, any increase in logistics costs can negatively affect order fulfillment margins, especially during periods of high volume.