India’s festivals, like Navratri, Dussehra, Diwali, Christmas and New Year, give a significant boost to the online shopping business. Among the major days that drive order volumes are Flipkart’s Big Billion Days, Amazon’s Great Indian Festival, Myntra’s Big Fashion Festival, and Nykaa’s Pink Friday Sale. Industry reports show that this year’s 15–20% sales growth will mainly come from buyers in tier-2 and tier-3 cities.
Yet, with this huge surge comes huge expectations. Millions of consignments flood the courier networks, courier partners work hard at best capacity, and sellers are left with the fine balancing act of ensuring faster deliveries and the rising logistics costs that threaten profitability.
In this blog, we will understand how the festive season affects courier rates and delivery timelines, and what sellers can do to be ahead of the curve.
Where do the Surge in festive orders come from?
During the festive season, demand rises everywhere, but smaller towns are now leading e-commerce growth. In recent years, Tier 2 and Tier 3 cities have contributed more orders than metros.
Tier 1 cities made up about one-fourth of festive orders, while metros added around one-fifth. This shows that smaller regions now play a bigger role in driving festive sales.
Pro Tip for Brands During Festive Rush:
- Stock inventory strategically near high-demand clusters.
- Expand last-mile delivery reach in smaller towns.
- Maintain robust capacity in metros and Tier 1 cities to sustain consistent urban demand.
Even with better inventory planning, sellers face another hurdle, like juggling courier partners during a time when their rates are volatile, so as to maintain deliveries on time.
How festive season impacts courier charges and delivery timelines in India?
As festivals approach, shoppers look for the best deals and send gifts to loved ones. But there’s a challenge, as many people abandon their carts if delivery dates are too long.
This change in buying behavior puts extra pressure on courier networks, often slowing down deliveries. What normally takes 2 days may stretch to 4 during peak events like Flipkart’s Big Billion Days or Amazon’s Great Indian Festival.
For brands, it’s clear that festive success isn’t just about discounts. It also means understanding how logistics work and planning ahead to manage delivery speed, costs, and customer expectations.
Navigating market dynamics in the festive season
To truly optimize festive sales, brands need to understand the shift in market dynamics, from fluctuating courier rates to longer delivery timelines, before configuring their strategies.
1. COD vs Prepaid
Shipping data shows the clear trend during the festive season that COD orders rose from 41% in October to 47% in December, whereas prepaid orders went down to 58% from 51%.
Why does it matter?
Increasing COD orders means lower cash flow as funds take longer to be realized. It also carries a great risk of cancellation at the last mile or returns, raising logistics costs and trapping inventories in reverse shipments.
Handling Tips for COD Orders:
- Automate COD reconciliation for efficiency.
- Early remittance of COD to ease the pressure on cash flow.
- Confirm the order before dispatching to reduce fraud and RTOs.
- Address validation upfront to prevent failed deliveries.
2. Air Shipments vs Surface Shipments
Compared to last year, air shipments during the festive season have risen by about 11%, while surface shipments have dropped by nearly 6%. It is a reflection of the demand by consumers for faster deliveries.
Why does it matter?
Air shipping means speed but comes at a higher cost, as with customers now demanding shipments on the same day or next day, logistics costs shoot up, with revenues from returns exerting another burden.
Tips to Optimize Air Shipping Costs:
- Position inventory across warehouses to keep the air freight distance minimum.
- Balance air shipment with surface shipment for the cheapest and fastest delivery.
- Set stock strategically to meet delivery targets without spending too much.
3. Non-Return Orders (NDR)
The festive season really pumps up the NDRs. Pushing to demand the data shows that the NDRs were at their peak in November, which was above those in October and December.
Why it matters:
High NDR rates slow down fulfillment and increase reverse logistics costs, which block inventory and damage customer trust and, thus, cost you money.
Tips to Reduce NDRs During the Festive Season:
- Try capturing precise addresses and phone numbers, with landmarks where they can be added.
- Verify cod orders using OTPs, calls, or partial pre-payment.
- If deliveries fail once, follow up immediately to re-arrange delivery.
How does festive rush impact courier performance?
One of the most critical yet often overlooked elements in the festive readiness is courier performance. While brands strategize for inventory, marketing, and promotions, the delivery experience largely relies on courier partners, whose reliability can become a little too unpredictable during peak seasons of Diwali, Christmas, and the New Year.
At Bigship, we have witnessed the fluctuations in courier performance when order volumes jump. Some partners maintain a steady set of on-time deliveries throughout the October-December period, whereas others struggle somewhere in mid-November due to maximum festivity loading. Few recover by upscaling the manpower and vehicles, only to hit the bottlenecks again in the late stretch when last-minute orders start pouring in.
For sellers, this volatility creates constant challenges. A courier that worked well early in the season might suddenly face delays, higher RTOs, or operational slowdowns later. Even leading carriers can run into manpower shortages, network congestion, or weather disruptions.
But this is exactly where brands get an edge with Bigship. Instead of sticking to a single courier, you can:
- Compare courier performance in real time across 30+ partners in one dashboard
- Auto-allocate shipments to the best-performing courier based on lane, cost, and delivery success.
- Balance loads smartly to avoid over-reliance on any one partner.
- Negotiate competitive rates through Bigship’s partnerships, ensuring you don’t overpay during festive surcharges.
With Bigship’s intelligent courier allocation and transparent tracking, brands can minimize delivery failures, control costs, and ensure smoother customer experiences even in the busiest festive weeks.
How a courier service aggregator like Bigship can help?
Bigship is a courier aggregator that consolidates all logistics processes under one roof. For e-commerce sellers, it offers simplified competition with over 30+ courier partners and automated tools to lower costs and reduce delays, all while providing a pleasant post-purchase experience from one dashboard.
1. RTO Management
RTOs can take away from margins during festivals, but Bigship comes with a smart tool to help reduce failed deliveries and increase order recovery.
Some of its features are as follows:
- Fraud Detection – Flag suspicious COD orders before dispatch.
- COD Confirmation – Put those suspicious orders on hold, verify them by calls, OTP, or WhatsApp prompts.
- Smart NDR Handling – Use a unified NDR panel to view undelivered orders, their reasons, and reattempts in real time.
- Early COD Remittance – Get your COD payments cleared faster for steady cash flow.
- Courier Allocation – Get your shipment assigned automatically to the best courier for every pin code.
- Actionable Reports – Spotlight recurring themes about couriers, areas, or products to alleviate losses.
2. Returns Management
Returns go up with festive shopping. Bigship looks at reverse logistics as a hassle and offers automated and cost-efficient workflows.
Some of the key features are as follows:
- Easy API Integrations – Reverse pickups from any of the leading carriers.
- Multi-Drop Returns – Schedule a return to many addresses in one way.
- Quality Checks – Check the condition of the item during pickup to minimise disputes.
3. Tracking & Post-Purchase Experience
The festive rush implies that customers desire visibility into their orders more than usual. Bigship opens up communication about such orders and turns their tracking into branding.
Some of the key features are as follows:
- Real-time Notifications – Real-time updates on shipping and delivery via SMS, WhatsApp, or email.
- Seamless Experience – Retain the customer in your ecosystem, earn trust, and spur repeat purchases.
Conclusion
The festive season in India brings both opportunities and challenges. Sales go up, but courier charges rise and deliveries often get delayed. For sellers, it’s important to offer discounts and deals while making sure every order reaches customers on time without hurting profits.
This is where Bigship helps. With 30+ courier partners, live tracking, automated NDR and RTO handling, and branded tracking pages, Bigship makes festive shipping easy. Sellers don’t have to worry about extra charges, failed deliveries, or missed deadlines.
Sign up today and make this festive season your smoothest shipping season yet.
