Starting an small e-commerce business is exciting, but choosing the right courier service can be challenging. In this blog, we will compare and analyze the two main types of courier services – Courier Companies and Courier Aggregators – and provide a guide to help you select the best option for your small business.
Courier Companies: Courier companies are individual service providers that collect and deliver packages from the seller to the customer. Examples of courier companies include DTDC, Delhivery, BlueDart, XpressBees, and many more.
The costs of these services are based on the weight of the package and the delivery speed. For example, if you need to ship perishable items and require delivery within 1-2 days, you will be charged a higher fee than other delivery options.
What to Consider When Selecting a Courier Company:
- Pricing: Compare prices per package weight and delivery area.
- Delivery Speed: Consider the time it takes to deliver the package.
- Tracking: Check if the company provides tracking facilities.
- Service Area: Determine the delivery range of the service by zip code or city.
- After-sale Services: Check how the company handles issues such as damaged or misplaced packages.
Courier Aggregators: Courier aggregators have agreements with multiple courier companies and offer various courier services with costs displayed on the seller’s dashboard. This makes it easy for the seller to select the most cost-effective option. Examples of courier aggregators are ShipDelight Logistics and Pickrr.
What to Consider When Selecting a Courier Aggregator:
- Pricing: Compare the prices of various courier services displayed on the aggregator’s dashboard.
- Response Time: Check how quickly the aggregator responds to issues or problems. You must seek assistance from the aggregator support team because the courier company you chose will not assist you.
- False Weight Discrepancy: Be aware of discrepancies between the specified weight of the package and the actual weight measured by the courier company. Assume you’ve specified the dimensions and weight of the courier, and it’s showing Rs.100, and your pickup has been scheduled. When it arrives at the courier company and when it is weighed again, according to their weighing machine, the product’s weight differs from yours, and they charge Rs. 200 for the shipment.
- COD Remittance: If you offer COD services, consider how quickly the aggregator remits the funds.
- Website Integration: You cannot book the courier one by one if you receive the order through your website. Determine if the aggregator provides API integration for your website.
Comparison of Courier Companies and Aggregators:
Courier Companies:
- Higher prices due to a direct approach
- Limited delivery range by pin code
- Higher shipment cost
- Instant customer support
- Potential for better shipping prices as your sales grow
Courier Aggregators:
- Lower prices due to multiple courier partnerships
- Broader delivery range by pin code
- Lower shipment cost
- Website integration available
- Customer support may be delayed due to an indirect approach
Conclusion: The best courier service for your small e-commerce business will ultimately depend on your specific needs. It is recommended to be flexible and consider multiple options.
I use Pickrr and ShipDelight Logistics as Aggregators and Xpressbees Courier Company for my business. I prefer ShipDelight’s customer service since they are prompt and fix issues quickly.
The Xpressbees fees and customer support services are also excellent. Pickrr costs are relatively low across the board.
You can also consider using a combination of courier services; as your business grows and evolves, you can negotiate better shipping rates.