Shipping for small online sellers in India: a practical guide
How to ship your first hundred orders in India without overpaying: couriers and aggregators, volumetric weight, packaging, shipping charges and returns.
Most small online sellers in India ship through a courier aggregator. One account gives you several courier companies, with no minimum volume and pickup from your door. You pay by weight slab and delivery zone, charged on the higher of the actual weight and the volumetric (size-based) weight, so small, light, tight packaging saves money. Before your first order, decide what to charge buyers for shipping, how you will handle COD and how returns will work.
Your options
| Option | Good for | Watch out for |
|---|---|---|
| Courier aggregator | New and small sellers: one account, many couriers, pickup, COD remittance | Rates and COD remittance terms vary; read the fine print |
| Direct courier contract | Sellers with steady volume who can negotiate | Minimum volumes, credit terms, one courier's coverage |
| India Post | Remote pincodes and light parcels | Tracking and speed vary by service |
| Local delivery or pickup | Same-city orders | Your own time and staff |
How shipping is priced
Weight slabs
Couriers charge in weight steps, commonly 0.5 kg. A parcel of 0.6 kg is billed as 1 kg.
Zones
The price goes up with distance: within your city, within your state or region, metro to metro, rest of India, and special zones such as the North-East and Jammu & Kashmir.
Volumetric weight
Big, light parcels take up space in the vehicle, so couriers charge on size too. Volumetric weight in kg is usually (length × width × height in cm) ÷ 5,000, though some couriers use a different divisor. You are charged on whichever is higher, the actual weight or the volumetric weight.
Take a 35 × 25 × 15 cm box. Its volumetric weight is 13,125 ÷ 5,000 = 2.625 kg, billed as 3 kg on 0.5 kg slabs, even if the product inside weighs 800 g. Put the same product in a 25 × 20 × 10 cm box and it is billed at 1 kg. Packaging size can matter more than product weight.
Packaging that saves money and returns
- Use the smallest box or mailer that protects the product.
- Keep two or three standard box sizes so your shipping costs are predictable.
- Use poly mailers for clothing and other things that won't break.
- Give fragile items enough padding. Damage claims cost more than bubble wrap.
- Use tamper-evident tape, and photograph high-value parcels before you seal them.
What to charge buyers for shipping
You have four common choices. Free shipping above an order value raises your average order value, as long as you set the threshold above your typical order. A flat rate is simple to explain and works when your parcels are similar. Charging by weight or zone is fairest for heavy or far-away orders. Or you can include shipping in the price and call it "free shipping", with the cost built into the product price.
Whichever you pick, show it on the product page or in the cart before checkout. Surprise charges at the last step are a common reason buyers leave.
Cash on delivery and remittance
With COD, the courier collects the cash and pays it to you (remits it) after delivery, minus a COD charge. Ask your courier or aggregator how often they remit and what they charge. Refused COD parcels come back at your cost, so set sensible COD limits (our blog has a guide on COD).
Returns
Write a clear return policy that says which items can be returned, within how many days, in what condition, who pays return shipping and how refunds are paid. India's Consumer Protection (E-Commerce) Rules, 2020 require sellers to show return, refund, exchange and delivery information to buyers.
Your daily dispatch routine
- Confirm the day's COD orders before packing.
- Pick and pack orders in the morning, checking each item against the order.
- Weigh and measure each parcel and book the shipment with the right weight. If you under-declare the weight, extra charges come later.
- Print the label and stick it where it won't be folded or covered by tape.
- Hand over parcels at pickup and keep the courier's pickup receipt.
- Add the tracking number to each order so the buyer is informed.
Delivery problems and how to handle them
Couriers sometimes re-weigh parcels and charge more. Photograph each parcel on the scale with its label visible, so you can contest a wrong charge. When an order is delayed, tell the buyer early, because a short message about the delay prevents most complaints.
For a lost or damaged parcel, raise a claim with your courier or aggregator quickly, with photos and the packing record. And check serviceability before you accept orders to remote pincodes, or offer India Post for them.
Comparing courier and aggregator offers
The headline rate per 500 g is only one number. Compare the price in the zones where most of your buyers live, the COD charge and how often they remit, the return-to-origin charge, the pickup schedule, the claim process for lost parcels and how quickly support replies. A slightly higher rate with reliable delivery usually costs less than a cheap rate with frequent problems.
Delivery promises you can keep
Show realistic delivery times on your product and checkout pages, by region if you can, for example "metros 2 to 4 days, rest of India 4 to 7 days". If you promise next-day delivery and your courier can't manage it, you get complaints and cancellations. If you only dispatch on certain days, say so, and set a daily cut-off time for same-day dispatch.
Shipping settings in CartWhizz
In a CartWhizz store you create your own shipping methods and rates, limit them to the areas you deliver to, and offer pickup from your own location. You add tracking numbers to orders so buyers can follow their parcel, and you can tie payment methods such as COD to particular shipping methods. Try it free for 7 days at cartwhizz.com/start.
Frequently asked questions
What is the cheapest way to ship products in India for a small business?
Usually a courier aggregator, which lets you compare several couriers' rates with one account and no minimum volume. Keep parcels small to avoid volumetric charges.
How is volumetric weight calculated?
Commonly length × width × height in centimetres divided by 5,000, which gives kilograms. Some couriers use another divisor, so check your rate card. You pay on the higher of actual and volumetric weight.
Should I offer free shipping?
Free shipping above a minimum order value often works well. It encourages bigger orders and protects your margin on small ones.
Who pays for returns?
You decide that in your return policy. Many sellers pay for returns of damaged or wrong items and ask buyers to pay for change-of-mind returns.
Sources
Official sources, checked 16 October 2026:
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