Top 10 Logistics Terms Every D2C Founder Should Know
- COD & RTO : Cash‑on‑Delivery & Return‑to‑Origin drive Indian consumer trust, but cost you margin.
- Dark Store Mesh : Decentralised fulfilment hubs cut last‑mile time & ROI spikes during festivals.
- NDR Management : Non‑delivery‑receipts optimisation turns failed pickups into revenue.
Introduction
In tier‑2 Indian cities like Jaipur, Indore, and Kalyan, consumer expectations for instant delivery clash with logistical realities. A D2C founder who speaks the same language as couriers—Delhivery, Shadowfax, Blue Dart—can shave days off deliveries and slash costs. Below are the ten terms that every founder in India’s booming D2C ecosystem must understand to negotiate contracts, build tech stacks, and win repeat customers.
Body
Definition: Payment collected at the point of delivery.
Why it matters: 68% of Indian e‑commerce orders are COD—especially in tier‑2/3 markets.
| Region | COD % | Avg Delivery Time |
|---|---|---|
| Mumbai | 45% | 2–3 days |
| Bangalore | 35% | 1–2 days |
| Guwahati | 80% | 4–5 days |
Problem‑Solution Matrix
| Problem | Impact | Edgistify EdgeOS Solution |
|---|---|---|
| High cash‑handling risk | Losses from non‑payment | EdgeOS’s real‑time cash‑flow dashboards alert when COD volume spikes |
| Longer delivery windows | Lost sales | EdgeOS optimises courier routes, reducing COD pickup times by 15% |
Definition: The process where an undelivered order is sent back to the warehouse or seller.
Key metric: RTO rate = (Failed deliveries / Total orders) × 100
| City | RTO Rate | Avg Cost per RTO |
|---|---|---|
| Mumbai | 4.2% | ₹450 |
| Bangalore | 3.5% | ₹400 |
| Guwahati | 6.1% | ₹500 |
Strategic Recommendation Implement NDR (Non‑Delivery‑Receipt) management to pre‑empt RTOs. Edgistify’s NDR Management module offers predictive analytics to flag high‑risk shipments before they fail, reducing RTO by up to 20%.
Definition: A micro‑warehouse located close to high‑density consumer zones, used exclusively for e‑commerce fulfilment.
Benefits: Cuts last‑mile time to < 30 minutes in metro areas; reduces transport cost.
Case Study – Dark Store Mesh in Bangalore
Definition: A network of interconnected dark stores that share inventory and routing data in real time.
Why it matters: During festive seasons (Diwali, Christmas), inventory pressure spikes by 120%. A mesh ensures optimal load distribution.
Definition: A system that tracks and predicts delivery failures in real time.
Key KPI: NDR Accuracy (%) – the percentage of predictions that matched actual failures.
| NDR Accuracy | Impact on Cost |
|---|---|
| 90% | ₹50 saved per order |
| 75% | ₹30 saved per order |
Definition: Shipping freight that does not fill an entire truck.
Use‑case in India: Ideal for small D2C brands shipping to multiple cities from a single hub.
Definition: Transporting goods that fill an entire truck.
When to use: Bulk launches (e.g., a new product line) where volume justifies a dedicated truck.
Definition: Peer‑to‑peer delivery, often via crowdsourced couriers.
EdgeOS Role: EdgeOS can integrate C2C partners in its routing engine, offering a hybrid delivery model that cuts costs by 12%.
Definition: Formal contract defining delivery times, handling procedures, and penalties.
Key clause: “On‑time delivery” for COD orders must be ≤ 48 hrs in tier‑1 cities.
Definition: The proportion of shipments handled via FTL vs. LTL.
Optimization Tip: Use EdgeOS analytics to maintain a 4:1 ratio during non‑peak seasons and 3:1 during peak to balance cost and speed.
Edgistify Integration
- EdgeOS : A unified logistics dashboard that aggregates real‑time data from courier APIs, RTO stats, and NDR predictions, enabling data‑driven decisions.
- Dark Store Mesh : Edgistify’s Dark Store Mesh framework distributes inventory across multiple micro‑warehouses, reducing last‑mile latency by 30% in cities like Mumbai, Pune, and Hyderabad.
- NDR Management : Predictive models flag high‑risk shipments, allowing proactive redirection and reducing RTO incidents by 20–25%.
These tools are not mere add‑ons; they are the backbone of a resilient D2C supply chain that thrives on speed, cost‑efficiency, and customer trust.
Conclusion
In India’s hyper‑competitive D2C arena, knowing the right logistics lingo is as critical as a killer product. From COD and RTO to Dark Store Mesh and NDR Management, every term represents a lever you can pull to shave days off delivery and cut costs. Equip yourself with Edgistify’s EdgeOS, and turn jargon into actionable strategy.