Optimising Shipping Costs for Ecommerce in India’s E-commerce: Unlocking Synergies Post-Merger

India’s e-commerce sector, projected to reach USD 325 billion by 2030, thrives on rapid internet penetration, a growing middle class, and initiatives like the Open Network for Digital Commerce (ONDC). Recent ecommerce mergers and acquisitions (M&As) reshape the industry, amplifying the need to optimise shipping costs, a key driver of operational efficiency. Post-merger integration (PMI) directly impacts supply chain structures and logistics, making shipping costs a critical focus for senior leaders. This article, supported by insights from LawCrust, explores strategies to reduce shipping costs, enhance logistics optimisation, and unlock merger synergies in India’s dynamic e-commerce landscape.

Recent Developments in Shipping Costs for Ecommerce

The past 2–3 years saw 501 M&A deals worth USD 21.4 billion in Q2 2024 alone, the highest since Q2 2022. Major transactions, like Reliance Industries’ USD 3.4 billion acquisition of Future Group’s retail and logistics businesses and Zomato’s USD 700–750 million merger with Blinkit, reshaped logistics operations. These ecommerce mergers drive trends such as:

• Warehouse Network Consolidation: Merged entities streamline redundant fulfillment centers to reduce shipping cost.
• 3PL Contract Renegotiation: Combined delivery volumes secure better pricing, lowering shipping costs for Ecommerce.
• Delivery Zone Realignment: Optimised routing enhances last-mile efficiency.
• Tech Stack Integration: Unified systems improve visibility and reduce logistics costs.

ONDC’s unified logistics APIs standardise shipping cost, enabling smaller players to access competitive rates. However, regulatory challenges persist. The Digital Personal Data Protection (DPDP) Act, enacted in 2023 but awaiting enforcement, mandates stricter data governance, impacting logistics tech integrations. GST alignment issues across merged entities complicate shipping cost calculations. The Union Budget 2025–26 allocated Rs. 20,000 crore for air cargo warehousing, potentially reducing shipping costs for Ecommerce indirectly, though no GST rate changes were introduced.

1. Key Challenges in Reducing Shipping Costs for Ecommerce Post-Merger

Post-merger, optimising shipping cost faces significant hurdles:

• Redundant Warehouses: Overlapping fulfillment centers inflate operational costs. For example, a merged fashion retailer might operate five warehouses when three suffice.
• Disparate Shippings Contracts: Varied SLAs with 3PLs (e.g., Delhivery, Blue Dart) hinder unified pricing, increasing shipping costs.
• Limited Supply Chain Visibility: Fragmented data systems delay shipments, escalating shipping costs.
• Tech Stack Fragmentation: Disparate order management systems (OMS) or warehouse management systems (WMS) cause logistics inefficiencies.
• Rising Reverse Logistics: Inconsistent SOPs increase return-to-origin (RTO) rates, with reverse logistics costing 15–20% more than forward shipping.

2. Strategic Levers to Optimise Shipping Costs for Ecommerce Post-M&A

Senior leaders, with guidance from LawCrust’s expertise in M&A and logistics, can leverage operational, technological, legal, and financial strategies to address these challenges.

• Operational Strategy

1. Consolidate Delivery Zones: Use route optimisation engines to merge zones, reducing shipping cost by up to 20%.
2. Renegotiate 3PL Contracts: Leverage combined volumes for volume-linked pricing, achieving significant cost reduction.
3. Adopt Hub-and-Spoke Models: Centralise distribution to streamline logistics and lower shipping cost.
4. Standardise Packaging and Returns: Uniform policies minimise handling costs, enhancing logistics optimisation.

• Technology Integration Strategy

1. Unify Tech Stacks: Implement middleware or composable commerce architectures to integrate OMS and WMS, improving visibility and reducing shipping costs.
2. Leverage AI/ML: Use AI for last-mile delivery predictions and inventory synchronisation, cutting shipping cost by 10–15%.
3. Integrate ONDC APIs: Adopt ONDC-compatible shipping APIs for uniform cost visibility, driving logistics optimisation.

• Legal & Contractual Strategy

1. Harmonise Contracts: Ensure uniform GST/TDS treatments to avoid compliance-driven shipping cost escalations, as advised by LawCrust.
2. Standardise SLAs: Align delivery timelines and liabilities to mitigate risks of delayed shipments.

• Finance & M&A Strategy

1. Model Shipping Costs for Ecommerce in Diligence: Analyse cumulative shipping cost and SLAs to identify synergy potential.
2. Build Synergy Cases: Focus on fleet rationalisation and warehouse co-location to reduce shipping cost.
3. Optimise Working Capital: Improve shipping cycle efficiency for faster cash conversion.

Illustrative Examples

• Merger Case: Fashion D2C Consolidation

In early 2025, two fashion D2C players merged, consolidating five regional fulfillment centers into three AI-optimised mega-hubs. By using delivery orchestration software, they reduced shipping cost by 23% within two quarters, showcasing the power of logistics optimisation.

• M&A Due Diligence Impact

An e-commerce conglomerate identified high per-order shipping cost during due diligence. Post-acquisition, they implemented cross-brand delivery routing and unified packaging workflows, achieving a 15% cost reduction across the network. ONDC API integration further lowered shipping costs for Ecommerce by accessing competitive courier rates.

Conclusion

Optimising shipping costs post-ecommerce merger is a boardroom priority for India’s e-commerce leaders. Effective logistics optimisation, seamless tech unification, and regulatory harmonisation, supported by LawCrust’s legal and strategic expertise, drive sustainable efficiency and unlock merger synergies. Proactive integration planning, robust M&A modelling, and operational agility ensure companies reduce shipping costs while enhancing supply chain efficiency, delivering long-term value in India’s dynamic e-commerce landscape.

About LawCrust

LawCrust Global Consulting Ltd. delivers cutting-edge Hybrid Consulting Solutions in Management, Finance, Technology, and Legal Consulting to ambitious businesses worldwide. Recognised for our cross-functional expertise and hybrid consulting approach, we empower startups, SMEs, and enterprises to scale efficiently, innovate boldly, and navigate complexity with confidence. Our services span key areas such as Investment Banking, Fundraising, Mergers & Acquisitions, Private Placement, and Debt Restructuring & Transformation, positioning us as a strategic partner for growth and resilience. With an integrated consulting model, fixed-cost engagements, and a virtual delivery framework, we make business transformation accessible, agile, and impactful.

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