Ajio Diwali Sale 2025: Effective Inventory and Supply Chain Strategies for Sellers

Published on September 20, 2025

Last updated on October 8, 2025 • 13 min read

Diwali celebrations have significantly changed in recent times. One of the most noticeable changes is the gifting aspect. Approximately 33% of people prefer to buy Diwali gifts for friends and family from the top e-commerce platforms. In fact, in 2024, online marketplaces sold goods worth Rs 55,000 crore in the first week itself. One of the prominent e-commerce platforms that drives this surge is Ajio.

Ajio sellers are all excited for the upcoming Ajio Diwali sale, which is expected to start on October 27, 2025. This is not just another sale that occurs throughout the year; it is like a battlefield of supply chain execution. As a seller, if your logistics or inventory falters, you risk losing thousands of orders in a single week.

So, how to ensure that everything runs smoothly? Well, this article explores the strategies that will keep your supply chain agile, resilient, and profitable during the Ajio Diwali Sale.

Understanding the Ajio Supply Chain Framework

Ajio’s supply chain is an interconnected web designed for optimum speed and scale. During peak festive sales, this network gets stretched thin, which is why sellers need to align their own operations with Ajio’s ecosystem.

Supplier Network: Ajio has a large supplier network, comprising both local artisans and global brands. For proper stock availability, sellers must coordinate their procurement timelines to ensure timely replenishment of their stock.

Decentralised Warehousing: Ajio leverages regional fulfilment centres. Sellers who strategically place inventory near demand hotspots gain faster delivery windows through Ajio fulfilment centres.

Tech Backbone: The platform features robust automation and analytics, enabling smooth order processing and real-time stock updates.

Customer-First Approach: Ajio expects its sellers to meet the expectations for speed, accuracy, and hassle-free returns.

Sellers can thrive during the Ajio Diwali sale by adopting Ajio’s tech-driven and customer-centric philosophy.

Inventory Planning: Stocking Smart for Diwali Demand

Inventory planning during the Ajio Diwali sale is not just about stocking up products; it is about having the products that are in demand, based on the demand volumes. Mistakes here can lead to empty carts, delayed deliveries, or unsold stock piling up post-Diwali.

Demand Forecasting with Precision

Begin by analysing past data of the Diwali sale and spot trends in terms of what categories spiked, what products were stagnant and the volume fluctuations on each day.
Ajio search insights, Google Trends, and social media can help identify trending SKUs, such as festive wear, ethnic collections, footwear, and accessories.
Festivals, regional events, payday cycles, and even weather can impact product demand.

Buffer Stock Strategy: Don’t Get Caught Short

Maintaining a 10–15% buffer for fast-moving SKUs for categories such as ethnic wear and accessories, where demand can double overnight.
If production cycles are long, buffer stock becomes even more important.
Adjust the buffer based on real-time sales velocity during the first few days of the sale.

SKU Optimisation: Focus on Winners

Apply the 80/20 rule; the top 20% of SKUs often generate 80% of revenue.
Review past sales and remove SKUs with poor conversion or high returns.
Pair slower SKUs with hot sellers in combo offers to drive clearance.

Strategic Placement of Inventory

Place inventory in Ajio’s fulfilment centres closest to your top demand zones. This reduces delivery timelines and RTO rates.
Utilise geo-analytics to forecast demand across Tier 1, Tier 2, and Tier 3 cities. Festive demand is no longer metro-exclusive.

Automation and Replenishment Systems

Set reorder triggers in your OMS/WMS so that stock is replenished as soon as it reaches minimum thresholds.
Integrate systems with Ajio to prevent overselling or stock mismatches.

Agile Adjustments During the Sale

Monitor which SKUs are spiking unexpectedly.
Quickly replenish the stock of trending items in Ajio’s fulfilment centres.
If certain SKUs underperform, apply discounts mid-sale to avoid post-festive dead stock.

Returns-Ready Inventory Planning

Keep a portion of inventory aside to replace returned items quickly.
Ensure returned items are quality-checked and reintroduced into circulation fast.
Track high-return SKUs and adjust procurement for future sales.

Inventory planning is more than just bulk stocking; it’s about being data-led, agile, and customer-focused.

Logistics Excellence: Where Sellers Win or Lose

While discounts during the Ajio Diwali sale ensure that millions of shoppers are attracted, the delivery speed can be an important factor in determining whether they will return. It is here that smooth logistics can be a game-changer:

Route Optimisation: Sellers can utilise tools that factor in live traffic, distance, and fuel efficiency.
Last-Mile Reach: Partner with carriers covering Tier-2 and Tier-3 towns, where festive demand is exploding.
Flexible Shipping: Offer express options in metros and economical standard options for other regions.
Returns Handling: A strong reverse logistics process boosts trust and encourages larger orders.

How to Enhance Ajio Logistics?

Considering that Ajio logistics is one of the prominent driving factors, sellers who can optimise it are in for a huge advantage during the Ajio Diwali Sale.

Collaborate with Ajio-Approved Logistics Partners

Sellers need to choose reliable partners who have a proven track record of fulfilling festive demands. To take a notch higher, sellers can use dashboards for real-time order visibility and transparent updates.

Optimise Routes and Reduce Costs

Deployment of advanced logistics software to design efficient delivery routes is essential. Sellers can implement dynamic routing that can be adjusted in real-time depending on the traffic conditions.

Prioritise Real-Time Tracking and Communication

Tracking data can be integrated with customer support so that query resolution is faster. Customers should get accurate delivery timelines.

Build a Seamless Returns System

Sellers have to communicate the return policies clearly so that there are no disputes from the customers. Collaboration with logistics partners ensures efficient reverse logistics, facilitating restocks and resale.

A seamless logistics chain results in faster deliveries and also helps in the reduction of order cancellations, thereby boosting seller ratings and visibility during the Ajio Diwali sale.

Supply Chain Optimisation Techniques

Sellers must optimise their supply chain processes to thrive during the Ajio Diwali Sale. Effective supply chain management of Ajio involves various techniques that enhance efficiency, reduce costs, and improve customer satisfaction. Below are some essential optimisation techniques that sellers should consider:

1. Warehouse Optimisation

Efficient warehouse management is crucial for quick order fulfilment. Sellers should organise their warehouses strategically to maximise space and improve picking efficiency.

Utilise Vertical Space: Implement shelving systems that effectively utilise vertical space, allowing for more stock without expanding the warehouse footprint.
Streamlined Picking Processes: Designate specific areas for high-demand items to reduce the time taken for picking and packing orders.

2. Order Fulfilment Automation

Automating order processing can significantly reduce errors and accelerate fulfilment times.

Implement Automated Systems: Use technology to automate order processing, from receiving orders to inventory updates and shipping notifications. This reduces manual errors and speeds up the entire process.
Integrate with Ajio Logistics: Ensure your automated systems are compatible with Ajio logistics partners for seamless order tracking and delivery.

3. Real-Time Tracking

Real-time tracking systems provide visibility into inventory levels and shipment statuses, which is crucial during the busy Ajio Diwali Sale.

Monitor Inventory Levels: Use tracking systems to monitor stock levels and reorder points, ensuring that popular items remain in stock.
Provide Accurate Delivery Estimates: Sellers can offer customers precise delivery timelines by tracking shipments in real-time, enhancing the shopping experience.

4. Flexible Shipping Options

Offering multiple shipping options can cater to different customer needs and preferences.

Express Delivery Services: Collaborate with Ajio logistics partners to provide express delivery services for customers who require quicker shipping.
Cost-Effective Solutions: Offer standard shipping options to balance speed with cost and ensure that all customer segments are catered to.

5. Robust Returns Management

An efficient returns management system is essential for handling the increased volume of returns during the Ajio Diwali Sale.

Streamlined Return Processes: Establish clear return policies and processes that make it easy for customers to return items, enhancing customer satisfaction and loyalty.
Reverse Logistics: Work with logistics partners to ensure that returned items are processed quickly and efficiently, allowing faster restocking and resale.

By implementing these supply chain optimisation techniques, sellers can effectively manage the complexities of the Ajio supply chain during the Diwali Sale.

Also check: Ajio Order Fulfillment With WareIQ

How Technology Gives Sellers A Competitive Edge?

When it comes to outpacing the competitors during the Ajio Diwali sale, technology can be a vital differentiator. It’s the sellers who leverage smart technology that manage to scale smoothly, delight customers, and outpace competitors.

Key Ways Technology Gives Sellers an Edge:

Real-time inventory sync prevents overselling and cancellations by updating stock instantly across Ajio and other marketplaces.
AI-powered demand forecasting helps predict Diwali spikes with accuracy, enabling sellers to stock best-sellers and avoid dead inventory.
An automated order management system (OMS) streamlines order processing and minimises errors.
Smart logistics tracking provides customers with live ETAs and updates on their orders, thereby reducing customer queries and lowering RTO rates.
The analytics dashboard helps convert raw sales and logistics data into actionable insights, which enable sellers to adjust prices, discounts, and placement accordingly.

You may also like to read: Flipkart Diwali Sale Inventory Strategies

Importance of Ajio Logistics Partners

The Ajio Diwali Sale’s success heavily relies on the effectiveness of its logistics partners. These partnerships are crucial for ensuring timely deliveries and maintaining high customer satisfaction. Here are some key reasons why Ajio logistics partners are vital to the supply chain:

1. Efficient Last-Mile Delivery

Logistics partners are responsible for the last-mile delivery, which is critical during high-demand periods like the Ajio Diwali Sale. Reliable logistics partners ensure that orders are delivered promptly, enhancing customer satisfaction and loyalty.

2. Capacity Management

During peak sales events, logistics partners help manage increased order volumes effectively. They are equipped to handle the surge in orders, preventing delays and ensuring that products reach customers on time.

3. Route Optimisation

Logistics partners utilise advanced technology to optimise delivery routes. Optimising routes reduces transportation costs and improves delivery efficiency, essential during the busy sales period.

4. Real-Time Tracking

Providing real-time tracking updates is a key service offered by logistics partners. This feature allows customers to monitor their orders, reducing anxiety and improving their shopping experience.

5. Returns Management

Efficient returns management is crucial for maintaining customer satisfaction. Logistics partners facilitate easy returns, ensuring that the process is hassle-free for customers, which can lead to repeat business.

The role of Ajio logistics partners is indispensable for successfully executing the Ajio Diwali Sale. By leveraging these partnerships, sellers can ensure they meet customer expectations and capitalise on the lucrative opportunities presented during the Diwali Sale.

You may like to explore: Myntra Diwali Sale: Best Practices for Inventory Management

Why is WareIQ the Smart Fulfilment Partner for Your Ajio Marketplace Orders?

Connect Ajio and other marketplaces seamlessly with WareIQ’s fulfilment platform.
Position inventory closer to customers through smart placement in WareIQ FCs.
Sell across multiple channels using centrally stored inventory.
Boost Ajio sales with WareIQ’s lightning-fast fulfilment.
Minimise losses with RTO insurance and hassle-free returns management.

Explore – Diwali Inventory Planning Playbook: Key Strategies for Sellers

Conclusion

The Ajio Diwali sale is not just another festival where sellers can gain massive success. It is quite a decisive time for the sellers, where they can prove their supply chain strength. Due to the discounts, orders are at an all-time high, and sellers must plan every phase of the sale accurately. Sellers who can align their operations with Ajio’s supply chain framework can move faster, deliver reliably, and earn customer trust when it matters most in a market where every second counts. Efficient supply chain strategies can transform missed opportunities into record-breaking festive sales.

Explore – Ajio Order Fulfillment With WareIQ

How can WareIQ help sellers optimise their supply chain for the Ajio Diwali Sale?
WareIQ can help sellers optimise their supply chain for the Ajio Diwali Sale by offering:
Access to a pan-India network of fulfilment centres for strategic inventory placement and faster deliveries
Automated order processing and fulfilment systems to handle the increased order volume efficiently
Real-time tracking and analytics to monitor supply chain performance and make informed decisions
Reliable logistics partners for last-mile delivery to ensure timely order fulfillment
Flexible shipping options for customers, including express delivery during peak demand periods

By leveraging WareIQ’s supply chain expertise and technology, sellers can streamline their operations and focus on driving sales during the Ajio Diwali Sale.

Also read: Meesho Maha Diwali Sale Fulfilment and Logistics tips

FAQs About Ajio Diwali Sale

When is the Ajio Diwali Sale scheduled to take place?

The Ajio Diwali Sale is expected to start on October 27, 2025. More than just a festive promotion, this sale is a high-stakes event for sellers often compared to a battlefield of supply chain execution. With thousands of orders at stake, any lapse in logistics or inventory can lead to major losses.

How can WareIQ help sellers optimize their supply chain and manage peak sales periods?

WareIQ can assist sellers by providing a comprehensive fulfilment solution with a pan-India network of fulfilment centres, smart inventory placement, and advanced automation tools. This enables sellers to optimise their supply chain operations, reduce delivery times, and efficiently handle the surge in orders during the peak sales period.

What kind of discounts and offers can customers expect during the Ajio Diwali Sale?

You can expect a flat 50% to 90% discount on products during the Ajio Diwali Sale. Additionally, IDFC and Federal bank cards will offer an extra 10% instant discount. New users can also avail of a flat Rs 500 discount using the coupon code “AJIONEW” on their first purchase.

How can sellers optimise their supply chain for the Ajio Diwali Sale?

Sellers can optimise their supply chain by implementing effective inventory management strategies, streamlining order fulfilment processes, enhancing logistics operations, and collaborating with reliable Ajio logistics partners. This includes demand forecasting, safety stock maintenance, warehouse optimisation, route optimisation, and real-time tracking.

What are the key benefits of partnering with Ajio logistics partners during the Diwali Sale?

Ajio logistics partners are crucial in ensuring efficient last-mile delivery, managing increased order volumes, optimising delivery routes, providing real-time tracking, and facilitating returns management. By leveraging these partnerships, sellers can enhance customer satisfaction and capitalise on the surge in demand during the Diwali Sale.

Are any additional cashback and coupon offers available during the Ajio Diwali Sale?

Yes, there are several additional offers available. Customers can get up to Rs. 500 cashback on minimum transactions of Rs. 1,000 using Paytm Wallet or MobikWik Wallet. Additionally, sellers can earn up to 8.09% cashback on Ajio shopping through platforms like Zingoy. Ajio also offers a “Coupon Quest” where users can use their Ajio Big coins to buy coupons and avail of further discounts.

What makes supply chain planning so critical for the upcoming Ajio Diwali Sale?

Festive sales often see a 25–30% surge in online orders compared to regular months. Without proper planning, sellers risk stockouts, delays, or high return rates, all of which can impact sales performance and seller ratings.

What are the best inventory management strategies for Ajio sellers during the Diwali season?

Maintain safety stock for fast-moving SKUs, prioritise top-selling categories, and automate replenishment. Multi-location storage in fulfilment centres close to regions where demand is high can also ensure faster delivery.

What logistics challenges do sellers face during the Ajio Diwali Sale?

Some issues that sellers face during a festive sale include delayed shipments due to high order volumes, last-mile delivery bottlenecks, and higher return-to-origin (RTO) rates.

Why is last-mile delivery so important during the Ajio Diwali Sale?

Customer expectations peak during festive sales. A single late delivery can reduce repeat business and negatively impact ratings. Faster last-mile fulfilment directly translates into better customer satisfaction.

Supercharge your fulfilment with WareIQ now, contact our team.

Author

Mariyam Jameela

Mariyam Jameela works as a content writer at WareIQ. With a proven track record of working with renowned brands such as GO Digit, Urban Ladder, Juspay, Hong's Kitchen, and many more. She actively contributes to the creation of blog posts centered on eCommerce operations, fulfillment, and shipping, in addition to providing insights on various strategies and techniques tailored for eCommerce sellers

Read all of Mariyam Jameela's Posts

Top 4 Inventory Valuation Methods Explained with Examples

Inventory valuation is essential for accounting and financial reporting purposes. The method by which a business values its inventory can impact several other key aspects, including cost of goods sold (COGS), gross profit, applicable taxes, and the balance sheet. According to accounting standards, having the correct method and applying it consistently is crucial. In this article, we will examine the top four inventory valuation methods, accompanied by relevant examples.What Does It Mean By Inventory Valuation?Inventory valuation is essentially the accounting process of assigning a monetary value to a company's assets, including its stock. In simple terms, inventory valuation determines how much your inventory is worth at a given point in time. On the balance sheet, inventory is recorded as a current asset.On an income statement, the cost of inventory sold during a period is recorded as Cost of Goods Sold (COGS), which impacts gross profit.Why Inventory Valuation Methods Matter?Inventory valuation has several benefits, such as:Inventory is often one of the most significant current assets on a company's balance sheet. Misvaluing inventory can distort both profit and financial ratios.With inflation (or deflation), different methods produce very different values for ending inventory and COGS, thus affecting net income.Standards (GAAP, IFRS) require the disclosure of the method used and consistency. If there is a change in the inventory valuation methods, it must often be disclosed and sometimes applied retrospectively.To assess the financial stability of a business for loan approval, it is based on the company's balance sheet and the valuation of its inventory.Inventory valuation can also impact the tax a business pays.Correct inventory valuation can provide essential data that helps inform strategic decision-making for future purchases and effective inventory management.What Are the Various Methods of Inventory Valuation?Inventory valuation can be performed using different recognised methods, which will ultimately affect the Cost of Goods Sold (COGS), ending inventory value, and overall financial reporting in various ways. Here are 10 methods of inventory valuation that are widely used:1. FIFO (First-In, First-Out): Assumes the oldest inventory is sold first, so the ending inventory reflects the most recent costs.2. LIFO (Last-In, First-Out): Most recently purchased items are sold first; the ending inventory reflects the oldest costs. Allowed under US GAAP, prohibited under IFRS.3. Weighted Average Cost / Average Cost Method: This method uses a weighted average of all the inventory costs, no matter if it is ending inventory or COGS.4. Specific Identification Method: Tracks the actual cost of each item sold, ideal for high-value or unique goods.5. Retail Inventory Method: Estimates inventory value using a cost-to-retail ratio, standard for retailers.6. Lower of Cost or Market (LCM): In this method, the inventory is recorded at the lower of historical cost or market value to prevent overstatement.7. Net Realisable Value (NRV): Here, inventory is valued at the estimated price minus costs to complete and sell.8. Replacement Cost Method: This method values inventory at the cost to replace it; it is majorly used for insurance or risk assessment.9. Standard Cost Method: The method uses predetermined standard costs for inventory, comparing actual costs to standards to record variances.10. Gross Profit Method: This method estimates ending inventory based on historical gross profit percentages, often for interim financial reporting.The Top Methods of Inventory Valuation: Examples IncludedBusinesses rely on various inventory valuation methods to determine key aspects, such as the cost of goods sold and the ending inventory value. Amongst the different inventory valuation methods, here are the top four that are mainly used by businesses:1. FIFO ((First-In, First-Out)Under the FIFO method of inventory valuation, older inventory is first sold out before new inventory is procured. Eventually, the ending inventory signifies the most recent purchase costs. This method aligns closely with the physical flow of goods such as food, perishable items, or cosmetics.In times of inflation, the FIFO method of inventory valuation results in a lower cost of goods sold because older and cheaper inventory is sold first, leading to higher profits. However, this also means a higher taxable income compared to other methods, such as LIFO.Let us understand this with an example:DateUnits PurchasedCost per UnitJan 1100$10Feb 15200$12May 1100$15These are the purchase inventory at different time periods.If the company sells 250 units, then, as per the FIFO method of inventory valuation:The first 100 units sold are from the Jan 1 batch at $10 each = 100 x $10 = $1,000The following 150 units sold are from the Feb 15 batch at $12 each = 150 x $12 = $1,800Hence, the COGS = $2,800.Whereas, the ending inventory is:Remaining 50 units from Feb 15 batch = 50 x $12 = $600100 units from May 1 batch = 100 × $15 = $1,500So, the ending inventory = $2,100.2. LIFO (Last-In, First-Out)In the LIFO method of inventory valuation, it is assumed that the most recently acquired items are sold first, leaving the older inventory on the balance sheet. This method is mainly used in environments with rising prices, as it assigns the latest, higher costs to the Cost of Goods Sold (COGS).While it may reduce tax liability, LIFO can make the balance sheet inventory appear understated, as older, lower-cost items remain in inventory.Let us understand this with an example:DateUnits PurchasedCost per UnitJan 1100$10Feb 15200$12May 1100$15These are the purchase inventory at different time periods.If the company sells 250 units, then, as per the LIFO method of inventory valuation:The first 100 units sold are from the May 1 batch at $15 each = 100 x $15 = $1,500The following 150 units sold are from the Feb 15 batch at $12 each = 150 x $12 = $1,800So, the COGS = $3,300Whereas, the ending inventory is:Remaining 50 units from Feb 15 batch = 50 × $12 = $600100 units from Jan 1 batch → 100 × $10 = $1,000Thus, the ending inventory stands at $1,600.3. Weighted Average Cost Method (Average Cost Method)In the average cost method of inventory valuation, the average cost of all inventory available for sale during a period is applied to both COGS and the ending inventory. This method smooths out price fluctuations over time, making it particularly useful for businesses with large volumes of homogeneous items where individual tracking is impractical.Contrary to FIFO or LIFO, there is no specific flow of goods. It helps simplify accounting and also reduces the impact of sudden price changes. Let us understand this with an example:DateUnits PurchasedCost per UnitJan 1100$10Feb 15200$12May 1100$15These are the purchase inventory at different time periods.Total units available = 400Total cost = 100×10 + 200×12 + 100×15 = $4,900Weighted average cost per unit = $4,900 ÷ 400 = $12.25If the company sells 250 units, then, as per the average cost method of inventory valuation:COGS = 250 × $12.25 = $3,062.50Ending Inventory = 150 × $12.25 = $1,837.504. Specific Identification MethodThe specific Identification method of inventory valuation assigns the actual cost of every specific item sold to the Cost of Goods Sold (COGS). It is therefore the best inventory valuation method. This approach is ideal for high-value, unique, or easily distinguishable items, such as cars, jewellery, or artwork, where tracking individual units is feasible. This method provides highly accurate profit reporting. However, the drawback is its administrative burden, making it impractical for businesses with large volumes of identical items.Let us understand this with an example:ItemCost PricePhone A$500Phone B$700Phone C$600This is the stock of 3 phones in the inventory.If the store sells Phone A and Phone C:COGS = $500 + $600 = $1,100Ending Inventory = Phone B = $700Which is the Best Inventory Valuation Method?The choice of the best inventory valuation method for your business will depend on several factors, such as:The nature of the inventory.The cost volatility.Tax environmentRegulatory environmentAdministrative capacityFinancial presentation goalsFor many businesses, a combination of FIFO or the Weighted Average method works. However, if there are exceptional items, then a specific identification method becomes more relevant.Get an Accurate Evaluation of Your Inventory With Various Tools From WareIQWareIQ is a Y-Combinator-backed eCommerce full-stack platform offering multi-channel fulfillment across D2C, Marketplaces, Quick Commerce, and B2B (General Trade & Modern Trade)Our solution offers:Pan-India network of Seller Flex & FAssured compliant across 12+ cities operated by WareIQ, and shipping partners for last-mile delivery across 27000+ pin codesMulti-Channel Fulfilment Platform with plug-and-play integrations across marketplaces (Amazon, Flipkart, Myntra, Nykaa, etc.), D2C platforms (Shopify, Magento, WooCommerce, etc.), WMS, and ERPs, to support fulfilment across distributors, flagship stores and eCommerce channels with analytics capabilities to assess operational performanceInventory LogIQ: AI-led multi-channel inventory planning solution to minimise stockouts and automate replenishmentLeverage the Tech-enabled returns QC solution to capture, centrally store, and auto-index HD media evidence of damaged or missing returned products and eliminate marketplace claims rejections.A host of seller enablement and support - dedicated account manager, APOB/PPOB registrations, GST registration, NDR & COD verification, etc.ConclusionInventory valuation is not just another accounting task; it is a strategic decision that will have an impact on various aspects of a business, such as profits, taxes, and financial reporting. The top inventory valuation methods include FIFO, LIFO, Weighted Average and Specific Identification. Each method has unique advantages tailored to your business's specific requirements. The correct method can help to optimise profits, manage costs, and gain a competitive edge.Suggested - 7 Inventory Management Techniques: Exploring FIFO, FEFO, and LIFO MethodsFAQs About Inventory Valuation MethodWhich method is best for perishable goods?FIFO is the most suitable option, as it ensures that older items are sold first.Can a company change its method of inventory valuation?Yes, but changes must be disclosed and justified in financial statements.Which method is most accurate for determining the value of high-value items?Specific Identification, because it tracks actual costs per item.How often should inventory valuation be reviewed?Regularly, at least annually, or whenever significant cost changes occur, to ensure accurate reporting.

November 05, 2025

What Is a Parcel Management System and Why Do You Need One?

The e-commerce logistics market in India is rising at a quick rate. In fact, by 2027, the e-commerce logistics market in India is expected to reach USD 11.48 billion. With this growth, billions of parcels are expected to be shipped annually across different regions. Still, a report suggests that approximately 20-30% of the parcels fall into the 'return to origin' category due to delays or misrouting.This is where a Parcel Management System steps in. A Parcel Management System (PMS) provides the centralised visibility and control businesses need to navigate this complexity, reduce costs, and deliver superior customer experience in an increasingly competitive market.Today, we will explore what a Parcel Management System is and why it is essential to have one available.What is a Parcel Management System (Introduction)?A Parcel Management System (PMS) is a digital platform used to streamline, track, and optimise the end-to-end process of shipping parcels. It helps simplify the handling of incoming and outgoing parcels. Instead of juggling multiple courier dashboards, spreadsheets, and emails, businesses can use a PMS to manage all parcel-related operations from a single interface.A PMS helps in:Booking of shipments with multiple carriers,Tracking the parcel status in real time,Parcel management, auditing, and consulting help identify hidden costs by auditing invoices.Managing return-to-origin (RTO) casesAnalysing shipping data to optimise future decisions.In simpler terms, whether you're an e-commerce brand, a 3PL provider, or even a retail store handling online orders, a Parcel Management System acts as the backbone of efficient parcel shipping management.Features of the Parcel Management SystemA Parcel Management System or PMS, is not only about tracking deliveries. It is a complete logistics optimisation tool. Utilising the right PMS can help businesses reduce costs, minimise errors, and improve customer satisfaction. Here are some of the key features of PMS:Centralised Dashboard: A PMS provides a single dashboard where you can book shipments, monitor statuses, manage returns, and generate reports in real-time.Real-Time Parcel Tracking: A PMS integrates with carriers to provide end-to-end tracking with live status updates and automated notifications for both businesses and customers.Multi-Carrier Integration: A PMS enables you to connect with multiple carriers simultaneously. This enables more thoughtful decision-making; you can choose carriers based on cost, speed, or region.Automated Shipping Labels & Documentation: From generating AWBs (Air Waybills) to customs documents for international shipping, a PMS automates the paperwork, reducing manual errors and saving time.Invoice Auditing & Cost Management: A PMS includes parcel management auditing and consulting features that verify courier invoices, flag discrepancies, and ensure you only pay for what's accurate.RTO & Returns Management: With a Parcel Management Software, businesses can track, analyse, and reduce RTO rates by identifying patterns and addressing customer issues proactively.Data Analytics & Reporting: Modern PMS solutions feature analytics dashboards that display shipping costs, delivery performance, RTO trends, and cost management in graphical representations, facilitating better decision-making.Scalability & Small Parcel Management: A PMS seamlessly adapts to your scale, irrespective of the volume. Some platforms even offer specialised small parcel management tools for SMEs and growing businesses.Customer Communication Tools: Modern PMS solutions can seamlessly integrate automated SMS, WhatsApp, or email notifications. This ensures that customers are always informed about their order status, reducing support calls and thereby improving overall satisfaction.Security & Compliance: With parcel data involving addresses, payments, and customer information, PMS platforms ensure data security, GDPR compliance, and secure integrations with carriers.10 Reasons Why You Should Get A Parcel Management SystemConsidering today's logistics industry, managing parcels manually can be highly chaotic and time-consuming. Many e-commerce sellers face challenges like rising shipping costs, return-to-origin (RTO) losses, courier delays, and eventually unsatisfied customers; hence, having a parcel shipping management system has become essential.Here are the parcel management benefits:1. Centralise Your End-to-End Parcel Management ProcessManage all shipments from a single, unified dashboard for enhanced control and visibility.Businesses can avoid juggling multiple courier portals and emails.It will help with bookings, deliveries, and returns in one place.It will considerably reduce errors caused by manual coordination.2. Save Cost With Smart Auditing Businesses can reduce unnecessary expenses by verifying invoices and comparing rates to ensure they are accurate and competitive.Detects hidden courier surcharges or incorrect weights.Compare carrier rates before shipping to choose the most cost-effective option.Leverage parcel management, auditing, and consulting to identify cost leakages.3. Tracking in Real-time and TransparencyProvide customers with visibility and proactive updates. It can help to:Offer end-to-end parcel tracking across carriers.Send automated SMS/email notifications with live status.Build customer trust with accurate delivery timelines.4. Reduce Return-to-Origin (RTO) LossesA Parcel Management System helps to lower one of the biggest concerns for sellers, RTO. A PMS essentially:Will flag high-risk shipments (COD orders, unverifiable addresses).Help to analyse RTO patterns to prevent repeat issues.Manage returns smoothly to minimise financial impact.5. Scale Up SeamlesslyGrow effortlessly without operational bottlenecks, as a PMS can:Supports small parcel management for startups/SMEs.Scales up to handle thousands of parcels daily.Adapts to seasonal spikes and business expansion.6. Get Data-Driven Insights Now, businesses can turn logistics data into actionable business intelligence, as a PMS allows:Access to cost management in the parcel industry graphs for visibility.Monitoring of KPIs like courier performance and cost per shipment.Forecasting demand and optimising carrier selection.7. Better EfficiencyIt is now possible to save time and improve efficiency by automating routine shipping tasks:Generate shipping labels, invoices, and manifests instantly with PMS.Automating courier bill reconciliation.Automation of tasks will free up staff to focus on core business growth.8. Enhanced Compliance and SecurityParcel Management System can help to protect customer data while staying compliant with regulations:Secure integrations with carriers and payment systems.Compliance with GDPR, PCI DSS, and regional data laws.Build customer trust by ensuring the safe handling of parcel data.9. Improving the Customer ExperienceBusinesses can now ensure customer satisfaction by delivering a seamless post-purchase journey to foster loyalty. A Parcel Management Software will help to:Provide accurate delivery ETAs and proactive updates.Helps in the simplification of return handling for customers.Reduce "Where is my order?" support calls.10. Gain Competitive Edge Businesses can outpace competitors who are still managing the parcel manually, as PMS helps to:Deliver faster and more reliably.Lower shipping costs while improving customer satisfaction.Strengthen your market position with efficient logistics.A Parcel Management System doesn't just improve shipping; it helps in boosting the overall efficiency, reduces costs, and enhances customer loyalty, all of which drive long-term growth.Simply Your Parcel Management With Smart Solutions from WareIQWareIQ is a Y-Combinator-backed eCommerce full-stack platform offering multi-channel fulfillment across D2C, Marketplaces, Quick Commerce, and B2B (General Trade & Modern Trade)Our solution offers:Pan-India network of Seller Flex & FAssured compliant across 12+ cities operated by WareIQ, and shipping partners for last-mile delivery across 27000+ pin codesMulti-Channel Fulfilment Platform with plug-and-play integrations across marketplaces (Amazon, Flipkart, Myntra, Nykaa, etc.), D2C platforms (Shopify, Magento, WooCommerce, etc.), WMS, and ERPs, to support fulfilment across distributors, flagship stores and eCommerce channels with analytics capabilities to assess operational performanceInventory LogIQ: AI-led multi-channel inventory planning solution to minimise stockouts and automate replenishmentLeverage Tech-enabled returns QC solution to capture, centrally store, and auto-index HD media evidence of damaged or missing returned products and eliminate marketplace claims rejections.A host of seller enablement and support - dedicated account manager, APOB/PPOB registrations, GST registration, NDR & COD verification, etc.ConclusionParcel handling is not just a back-office task for businesses; it has become a critical business driver. Billions of parcels are shipped each year, and customers expect to receive even better service. Hence, there is no room for delays, hidden costs, and, more importantly, missed deliveries. A Parcel Management System (PMS) solves these challenges by centralising operations, automating routine tasks, reducing costs, and delivering the visibility both businesses and customers need.Whether you run a small enterprise which handles a handful of parcels or a multinational brand handling thousands, the benefits of having a PMS are indeed undeniable. A PMS is a strategic investment that can help your business to stay competitive, agile, and profitable in a parcel-driven economy.FAQS About Parcel Management SystemWhat is a Parcel Management System?Parcel Management System is a software solution that centralises parcel shipping, tracking, auditing, and returns in one platform.Who needs a Parcel Management System?E-commerce brands, retailers, 3PL providers, and any business shipping parcels regularly.What are the main benefits of using a Parcel Management System?The primary benefits include savings, faster deliveries, real-time tracking, reduced RTOs, and improved customer satisfaction.What features should I look for in a Parcel Management System?Multi-carrier integration, auditing tools, analytics, automation, and scalability are essential features for effective management.

November 04, 2025

Transportation Charges GST Rate: What You Must Know

Did you know that about 70% to 75% of India's GST revenue for the year 2023-24 came from the 18% slab? Moreover, approximately 13% to 15% of India's Goods and Services Tax (GST) revenue was collected from the 28% slab. This means that a significant amount of revenue is generated from GST on transportation, and, yes, your trucking bill is a substantial contributor to this number. As the Goods and Services Tax (GST) came into effect, significant changes have been made to the taxation system for transportation, particularly for businesses. This has led to an increased need to understand the details of transportation charges GST rates. Let's look at what you must know about transportation and GST rates.What is the GST Rate on Transportation Charges?Depending on the mode of transportation, such as rail, road, air, or water, a specific GST rate applies. The rate will vary further according to the type of service provided under each mode of transportation.GST Rate on Road Transport ServicesThe GST rate is fixed for any road transportation services, firstly, based on the mode of transport and secondly, on the nature of the service. Public modes of transportation, including buses, metros, and trains, are generally exempt from GST. This ensures that public transportation is both easily accessible and affordable for passengers.When it comes to the GST rate, which will be applicable on taxis and cabs, a 5% GST is levied. Operators can opt to pay 12% GST if they intend to claim an input tax credit (ITC).Here is a table that explains the different GST rates for road services:Mode of TransportGST Rate Public Transport (for passengers)0%Transportation via metered rickshaw, e-rickshaw or cab0%Buses (Non-AC)0%Buses (AC)5%Radio taxis or similar transportation options5%Rentals (cars, buses, and coaches)18%GST on Rail Transportation ServicesEvery rail ticket that is issued contains a fixed amount of GST that is decided based on the mode and the service. However, this GST rate is subject to periodic changes.Here are the GST rates which are applicable for rail transportation services:Mode of TransportGST Rate Sleeper and general class tickets5%AC and First Class tickets5%Metro tickets or tokens12%GST on Air Transportation ServicesTransportation via air is also subject to GST rates. The GST rate will change based on the mode of transport and the service availed. Although the GST rate remains standard for all airlines, there can be certain changes.Here are the GST rates which are applicable for air transportation services:Mode of TransportGST Rate Economy class air tickets5%Chartered flight tickets for pilgrimage5%Rental services of aircraft or chartered flights (with or without operator12%Business-class air tickets12%GST on Water Transportation ServicesGST is also applicable for transportation via inland waterways. However, there is no provision for Input Tax Credit (ITC).Here are the GST rates which are applicable for water transportation services:Mode of TransportGST Rate General passenger boats5%Ferry services on rivers or canals5%Cargo transport (renting or hiring vessels)18%GST on Road Transportation Service: GTA Goods Transport Agency (GTA) is a business entity that specialises in providing transportation services exclusively for goods. It plays an important role in the logistics sector; therefore, under GST, there are compliance requirements for GTA as well. The GST rate applicable to a GTA will vary depending on factors such as the type of goods being transported and the total value of the consignment. Here is the GST on goods that are transported via GTA:SituationGST Rate If the GTA does not claim the Input Tax Credit (ITC)5%If the GTA does claim the Input Tax Credit (ITC)12%Forward Charge vs. Reverse Charge Option For GTAGoods Transport Agencies (GTAs) can choose to pay GST themselves under the forward charge rate for the transportation charges system. In this case, they charge either 5% GST without claiming an input tax credit (ITC) or 12% GST with ITC after submitting a yearly declaration.If the GTA doesn't choose this option and goes with 5% GST without ITC, then the reverse charge rate on transportation under the GST system applies. That means the person or business receiving the service must pay the GST, not the GTA.GST on Transportation: Exemptions There are various cases where exemptions are provided on the transportation GST rates, and they are listed below:Any kind of transportation services offered by public transport operators, such as buses, local trains, and metros, are exempt from GST.If transportation services are provided for passenger goods, specified essential commodities, or passengers via Indian Railways, they are exempt from GST.If any mode of transportation transports commodities such as milk, food grains and agricultural produce via road, rail or vessel, it is exempted from GST.When educational or academic institutions provide transportation services for students, staff, or faculty, they are exempt from GST.If passengers are transported via aircraft from airports located in regions such as the Northeastern regions, the Andaman and Nicobar Islands, Himachal Pradesh and Lakshadweep, they are exempt from GST.List of Goods Which are Exempted from GSTGST does not apply to specific transport services, especially those involving essential goods and activities. These exemptions are granted for the following categories:Transport of goods for unregistered individuals or through non-GTA (Goods Transport Agency) services.Movement of agricultural produce and eco-friendly inputs like organic manure.Distribution of registered newspapers and periodicals.Delivery of essential food products, including rice, flour, pulses, milk, salt, and other staples.Shipment of relief materials meant for victims of natural or man-made calamities.Transportation of military and defence-related items.Household goods moved during personal relocations.Freight services where the total charge does not exceed ₹1,500.Also check - Difference Between Transportation and LogisticsTransport Charges HSN Code and GST RateThe Harmonised System of Nomenclature (HSN code) is a classification system useful for taxation purposes. The transportation charges, HSN code, and GST rate are interrelated. Under the GST regime in India, the GST rate and the HSN code differ from one mode of transportation to another. Here is the list of HSN codes applicable to different modes of transportation:Mode of TransportationHSN CodeRoad Transportation996511Rail Transport996512Air Transport996513Water Transport996514Pipeline Transport996515Better Transportation With Shipping Solutions From WareIQWareIQ's smart shipping solution helps eCommerce brands minimise cost leakages caused by RTOs, fake delivery attempts in NDR, weight reconciliation issues, and more. Our solution also offers prompt support for handling urgent client escalations, ensuring smooth operations at all times.Our solution offers the following capabilities:Multi-carrier engine enabling fast deliveries across 24,000+ pin codesControl Tower & automated workflows to minimise NDR & RTOsSame/Next-day delivery courier optionsSeamless Integration with your WMS, ERPs and StorefrontsShipping Badges to display precise Estimated Delivery Dates (EDD)Custom-branded tracking pages and notifications to enhance customer experience.ConclusionThe GST rate on transportation charges might be confusing, but businesses need to understand it to make more informed and cost-effective decisions. Usually, the GST ranges from 0% to 18%. The GST slab will depend on the type of service, mode of transport, and whether or not you claim the ITC. However, some services, such as public transport, agricultural goods, and materials, are exempt from GST. This allows access to such services while also being affordable. On the other hand, premium services and freight movements will also be subject to increased GST rates. When it comes to good transport agencies (GTA), they are allowed to choose between the forward charge GST rate for transporters or the GST rate on transport under reverse charge as per their preference.Suggested - Top 10 Transport Companies in IndiaFAQs About Transportation Charges GST RateAre all transportation services subject to GST?No, not all services are subject to GST. Essential and public services, such as railways or non-AC buses, as well as the transportation of basic goods, are exempt from GST.What GST rates apply to GTA?GTAs can select between 5% without ITC and 12% with ITC. It depends on the chosen tax scheme and tax declaration.Is GST applicable to cab services, such as Uber?Radio taxis and AC taxis will attract 5% GST.Does transporting household goods attract GST?No, the transportation of personal household goods is exempted from GST.

November 03, 2025