Logistics Headaches Mount for D2C Brands

Firms are unhappy with logistics partners over delivery and billing issues

- Sakshi Sadashiv & Sowmya Ramasubramanian

New-age direct-to-consumer (D2C) brands are getting more frustrated with their logistics partners, even as they increasingly rely on the aggregators and quick-commerce platforms for a majority of their sales.

Yet, third-party logistics providers remain crucial for D2C companies selling products such as apparel, beauty and personal care items, packaged food, beverages, electronics, and nutraceuticals directly from their digital platforms—which is essential for brand relevance.

Founders of D2C brands across sectors—jewelry, perfumes, homeware, skincare, clothing—detailed operational chaos stemming from logistics issues that they find difficult to resolve. "Wallets are a big issue. They (logistics providers) deduct the money first, and then you're left to dispute," said the founder of a Mumbai-based jewelry company.