Press Release

Third-party Logistics(3PL) Providers – Indispensable Partners to Accelerate Growth for Early-stage D2C Brands

Third-party Logistics (3PL) providers are revolutionizing the D2C market in India by ensuring seamless logistics integration and exceptional customer service, driving unprecedented growth and efficiency. Their technological solutions and comprehensive and integrated services make them indispensable partners, particularly for early-stage D2C brands.

Key Points:

  • D2C brands are rapidly growing due to 3 major trends: premiumization and massification, channel convergence from niche to broad markets, and swift expansion into quick commerce and physical stores.
  • Brands’ logistics demands have surged, with D2C shipments growing from approximately 0.1 billion in 2019 to 0.6 billion in 2023.
  • The rise of D2C brands has boosted the growth of 3PL providers, as brands increasingly outsource logistics to concentrate on their main business.
  • Instead of relying only on aggregators, early-stage D2C brands are now partnering directly with 3PL service providers due to their customized solutions approach. 3PLs, in turn, are innovating to cater to the evolving needs of these new-age brands.
  • Among 3PL providers, while both Delhivery and Bluedart stand out on overall metrics, Delhivery has outperformed in providing superior customer experience and features, as it provides a full stack solution


In a recent report on the logistics landscape of new-age D2C brands, Redseer Strategy Consultants shared insights into India’s direct-to-customer (D2C) market, logistics requirements of early-stage D2C brands, and how third-party logistics (3PL) players are effectively catering to them.

The report highlights the remarkable growth of D2C brands in India, surpassing the traditional retail markets. While the annual D2C shipments have skyrocketed from 0.1 billion in 2019 to 0.6 billion in 2023, estimates indicate that the market could reach USD 2.2-2.7 billion by 2028, growing at 35-40% year-on-year from 2023 to 2028.

A significant portion of these shipments is attributed to the services of the 3PL providers, who play a major role in delivering superior customer service. 3PL providers offer tailored and comprehensive end-to-end logistics services, including warehousing, inventory management, shipment intelligence, and transportation. These services have become crucial for young brands that now have access to advanced logistics infrastructure without the need for significant capital investment.

To gain insights into the needs of early-stage D2C brands, Redseer Strategy Consultants conducted over 60 interviews with emerging brands in India. The survey revealed a growing trend of these brands partnering directly with 3PL service providers, recognizing their customized solutions approach. This strategy allows young brands to leverage 3PL expertise, adapt to their evolving logistical requirements, and concentrate on core business activities while solidifying their presence in today’s competitive brandverse.

The report further underscores how 3PL logistics players are innovating to meet the increasing demands of new-age D2C brands. Some of the proactive measures undertaken include:

  • 3PL providers are investing heavily in technology and infrastructure, offering accelerated delivery times, real-time tracking, non-delivery reports, and predictive analytics for returns.
  • They provide seamless cash-on-delivery (COD) solutions with swift remittance, typically within 48 hours, which is vital for the working capital of smaller brands.
  • They support new-age brands through offline market expansions, offering integrated logistics and supply chain solutions, including warehousing, express part-truckload and full-truckload freight and streamlined distribution to brick-and-mortar stores.
  • They ensure consistent service levels, prompt issue resolution, and personalized account management, making the logistics process hassle-free.


Third-party logistics (3PL) providers are integral to the value-chain of the new age D2C brands. They are continuously innovating to address the unique needs of these brands, fostering partnerships from the early stages of brand journey.”, said Kanishka Mohan, Partner, Redseer Strategy Consultants.

Within the 3PL logistics landscape, Redseer has highlighted factors like brand and customer experience and operational efficiencies that are important for new-age brands when choosing their preferred partners. While both Delhivery and Bluedart stand out on overall metrics, Delhivery has outperformed in providing superior customer experience and features, as it provides a full stack solution.

Read the report here: Link

About Redseer Strategy Consultants

Redseer Strategy Consultants is India’s largest and renowned strategy consultancy firm with a global footprint. Founded in 2009, Redseer collaborates with leaders and organizations to build thriving digital businesses. Using proprietary methodologies, deep consumer understanding, high-quality research, and an entrepreneurial mindset, Redseer offers unparalleled solutions in private equity, growth advisory, and consumer research. Headquartered in Bengaluru, Redseer has a strong team of 200+ consultants in India and around the world.