Online shopping could become more expensive during the festive season. Logistics giant Delhivery has raised shipping charges for Direct-to-Consumer (D2C) brands. This hike in delivery costs could directly impact the prices of goods sold online. In an email sent to clients, the company announced that starting September 1, an additional ₹4 will be charged for every express shipment and ₹2 for every surface shipment. Direct-to-Consumer brands are companies that sell their products directly to customers, bypassing wholesalers, distributors, or retailers.

Companies like Mamaearth, boAt, and Wakefit are D2C brands; they operate on thin margins. Delivery costs for a 500-gram parcel are estimated to rise by 5 to 10 percent. Instead of absorbing these increased costs themselves, these companies might pass the burden on to consumers by raising retail prices. In its email, Delhivery stated that the rate hike was necessitated by rising aviation fuel prices, ground staff costs, and inflationary pressures on the logistics network.

**Charges Raised Ahead of Schedule**

According to a Moneycontrol report, Delhivery’s new surcharge will be applied on top of existing delivery rates, which are determined based on weight and distance. This hike has raised concerns among D2C brands. Typically, companies raise rates in October, closer to Diwali, but this decision has been announced earlier than usual.

**Amazon and Flipkart Have Also Raised Fees**

Prior to Delhivery, Amazon and Flipkart had also increased their fees. Amazon has raised cancellation charges from 2% to 10% of the order value and increased closing fees by ₹1 to ₹3. Flipkart has imposed penalties ranging from ₹30 to ₹90 for dispatch delays and cancellations.

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