Trackon Courier Charges: A Quick Guide to Affordable Shipping

Published on June 9, 2025

• 7 min read

There has been an upward trend in the Indian courier, express and parcel (CEP) market. According to a recent study, almost 8.8 million parcels are shipped daily within India. Among the many courier service providers in India, Trackon Couriers have been in the market for more than two decades and hold immense experience in the logistics industry.

Trackon Couriers has become one of the top choices due to the different shipping services that it offers at affordable rates. In this article, we will talk about Trackon courier charges and the different services that it provides.

Table Of Contents

Trackon Couriers Overview
Services Offered by Trackon Couriers
Trackon Couriers Pricing Structure
Factors Affecting Trackon Courier Charges
WareIQ Offers Fast and Reliable Shipping at Competitive Rates
Conclusion
FAQs About Trackon Couriers

Trackon Couriers Overview

Trackon was started in 2001, and since then, it has been one of the most trustworthy, reliable, and accessible courier services in the country. With over 6500 franchisee stores in India, Trackon couriers handle more than 2 lakh daily shipments.

Trackon provides both domestic and international shipping services. They offer a wide range of new-age logistics solutions for all shipping needs. Their customer-focused strategy ensures that the customer is always satisfied. Customers can surely get competitive rates and speed delivery, whether it is documents or parcels.

Covering more than 17,000+ pin codes, you can get parcel delivery with real-time tracking at nominal delivery rates.

Services Offered by Trackon Couriers

Prime Track

37% of consumers prefer the next-day delivery option, and Trackon provides next-day/two-day delivery with Prime Track service. Great for urgent shipments of documents and time-sensitive parcels.

Express Standard

Express standard provides delivery of documents and parcels via air, rail and road modes of transportation. The rates are highly economical and best suited for immediate logistics needs.

Road Express Cargo

Great for heavy B2B consignments, Road Express Cargo gives an affordable delivery solution. Special material handling and professional pick-up services are among the best options for businesses with huge shipments.

Air Express Cargo

Shipments that are above 100 kg are shipped via air. Trackon ensures pan-India air delivery service for such shipments. This is great for high-volume shipments that businesses want to ship faster.

ToPay Service

To provide flexibility in payment arrangements, the ToPay facility allows contractual customers to have charges collected directly by the consignee (receiver) and not the consignor (sender).

Reverse Pick-up Solutions

Trackon offers their customers hassle-free reverse logistics. Customers can now arrange pick-ups across the country without any delays. It helps in streamlining the return process.

Cash on Delivery (COD)

As per a survey by Rakuten Insight, about 62% of consumers prefer the cash-on-delivery (COD) option. Trackon offers COD service for corporate and credit customers. It helps businesses to retain customers even if they select the COD option. The COD option and ToPay are convenient for collecting the payment from the consignee when the shipment is delivered.

Risk Cover and Surcharge

65% of consumers prefer insurance while shipping. Trackon Couriers also provides a risk surcharge option, which offers comprehensive insurance coverage in case the shipment is lost or damaged. To avail of this service, a 2% non-refundable risk surcharge will be applicable on the invoice value. In case of an existing insurance, a surcharge of 0.2% of the invoice value is applicable for facilitating the Certificate of Facts (COF) while claiming the insurance.

Related read – Courier Charges in India Per Kg

Trackon Couriers Pricing Structure

The Trackon courier charges are based on different factors. Apart from the weight of the material being the primary factor, the region and the service levels also play a crucial role in the Trackon courier rate list.

Below is the region-wise Trackon courier charges per Kg

Region	Trackon Courier Charges Per Kg
Price Trackon (Normal North)	Rs. 70
Price Trackon (Normal Metro)	Rs. 140
Price Trackon (Normal Rest of India)	Rs. 150
Price Trackon (Prime North)	Rs. 185 (125/0.5kg+60/0.5kg) The first 0.5 kg will be at a fixed price of Rs. 125, and then an additional 0.5 kg of Rs. 60 will be charged.
Price Trackon (Prime South)	Rs. 240 (150/0.5kg+90/0.5kg)The first 0.5 kg will be at a fixed price of Rs. 150, and then for every additional 0.5 kg, Rs. 90 will be charged.
Price Trackon (Prime National)	Rs. 295 (175/0.5kg+120/0.5kg)The first 0.5 kg will be at a fixed price of Rs. 175; for every additional 0.5 kg, Rs. 120 will be charged.
Price Trackon (Prime Jaipur)	Rs. 115 (80/0.5kg+35/0.5kg)The first 0.5 kg will be at a fixed price of Rs. 80; for every additional 0.5 kg, Rs. 35 will be charged.

Factors Affecting Trackon Courier Charges

Several aspects can either increase or decrease Trackon courier charges. Below is a rundown of the factors that influence Trackon’s courier pricing.

Type of delivery: Expedited delivery will have higher courier charges compared to standard delivery.
Distance: Shipping charges for longer distances are higher as the resources required for transportation increase.
Weight and size of the shipment: The shipment’s weight and size will eventually determine the courier charges. Heavier shipments will require more resources for handling and will also have high shipping charges.
Additional services: Opting for extra services like insurance and special deliveries will have additional charges.
Destination: Depending upon the delivery location, the charges will also change. Remote locations will have higher charges, as they are difficult to reach and, at times, logistically challenging.
Franchisee prices: If third-party services are used, the prices can vary too.
Offers and promotions: customers having a long-term relationship might stand to gain a discount on the shipment.

Suggested – Types of Courier Services for eCommerce Businesses

WareIQ Offers Fast and Reliable Shipping at Competitive Rates

WareIQ’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 codes
Control Tower & automated workflows to minimise NDR & RTOs
Same/Next-day delivery courier options
Seamless Integration with your WMS, ERPs and Storefronts
Shipping Badges to display precise Estimated Delivery Dates (EDD)
Custom branded tracking pages and notifications to enhance customer experience

Conclusion

Since its inception, Trackon Couriers has become a well-known name that offers reliable and cost-effective shipping that is scalable to meet business needs. The shipping solutions are affordable yet promising. Whether you want to send out a small package or have a bulk shipment to be sent across the country, Trackon Couriers offers an array of solutions for all your needs. The pricing structure is quite economical. It varies depending on the weight of the shipment and the region to be shipped. Businesses can also avail themselves of value-added services like ToPay, COD, and Risk Surcharge, which can optimise logistics.

FAQs About Trackon Couriers

What is the difference between Trackon regular and prime service?

The regular service has standard delivery timelines at affordable rates. Conversely, prime service includes faster deliveries at a higher cost.

Is cash on delivery (COD) service available with Trackon?

Yes, trackon provides COD service for corporate and credit customers.

Is it possible to track shipments in real-time?

Yes, the Trackon courier tracking option is available on their website, where you can enter the consignment number to check the shipment status in real-time.

Does Trackon deliver internationally?

Although Trackon primarily provides domestic shipping, some franchisee partners may also offer international courier service.

On what basis does Trackon calculate courier charges?

Trackon calculates courier charges depending on factors such as the actual or volumetric weight of the package (whichever is higher), the delivery location, the type of shipping service, and any extra services selected.

Supercharge your fulfilment with WareIQ now, contact our team.

Top 10 Products to Export From India [2025]

India has solidified its position as a global export leader, offering a diverse range of products that cater to international markets. In 2025, India's top 10 products to export from india span various industries, reflecting the country's robust manufacturing and agricultural sectors. This article delves into these products, providing insights into their export performance and potential. List of Products Exported from India The top export items from India in 2025 are as follows: 1. Engineering Goods Engineering goods have consistently been among the most exported products from India. This category encompasses a wide array of items, including industrial machinery, automobiles, and auto components. Automobiles and Auto Components: In the first seven months of the fiscal year 2024-2025 (April to October 2024), India's exports of engineering goods reached USD 67.48 billion, marking a 9.73% increase from the same period in the previous year.Notably, auto components and parts experienced an 8.98% growth, with exports rising from USD 4.41 billion to USD 4.81 billion. Industrial Machinery: India's manufacturing prowess has positioned it as a key exporter in this segment. The country's engineering sector benefits from a skilled workforce and competitive production costs, making its machinery highly sought after globally. 2. Electronic Goods The electronics sector has seen remarkable growth, becoming one of India's top exports. Smartphones: India's smartphone exports reached USD 15.5 billion in the fiscal year 2023-2024. Between April and October 2024, exports were USD 10.68 billion, a 36.85% increase from the same period the previous year. Solar Photovoltaic (PV) Cells: The Solar PV sector has emerged as a leading sector from the energy transition perspective in recent times. In 2022-2023, exports were USD 1.03 billion, which almost doubled to USD 2.02 billion in 2023-2024.India's global rank and share in Solar PV exports have improved significantly, rising from 18th place with a 0.4% share in 2013 to 6th place with a 2.5% share in 2023. 3. Pharmaceutical Products India's pharmaceutical industry, often dubbed the "pharmacy of the world," plays a crucial role in global healthcare. Generic Medicines: Between April and October 2024, pharmaceutical exports stood at USD 17.05 billion, reflecting an 8% growth from the previous year. Vaccines and Biologics: India is a significant supplier of vaccines and biologics, contributing to global health initiatives and immunization programs. 4. Gems and Jewellery The gems and jewellery sector is a cornerstone of India's export economy. Diamonds and Precious Stones: India is one of the largest exporters of gems and jewellery in the world, exporting goods worth over $35 billion per year. Gold and Silver Jewellery: Indian artisans are renowned for crafting intricate gold and silver jewellery, which is in high demand in markets like the Middle East, USA, and Asia. 5. Textiles and Apparel The textile industry is integral to India's economy, providing employment to millions and contributing significantly to exports. Ready-Made Garments (RMG): Exports of RMG of all textiles were USD 8.73 billion between April and October 2024, an 11.59% increase from the previous year. Handloom and Cotton Yarns: India's rich tradition in handloom products and cotton yarns makes it a preferred supplier for quality textiles worldwide. 6. Organic and Inorganic Chemicals The chemical industry in India has shown robust growth, with exports spanning various chemical products. Organic Chemicals: India exports a wide range of organic chemicals used in industries like pharmaceuticals, agriculture, and textiles. Inorganic Chemicals: These include products like acids, alkalis, and salts, which are essential for various industrial processes globally. 7. Leather and Leather Products India's leather industry is known for its quality and craftsmanship. Footwear: India exports nearly 95% of its annual leather production worth $5.3 billion, with footwear being a significant contributor. Accessories: Products like bags, wallets, and belts crafted from Indian leather are highly sought after in international markets. 8. Agricultural Products India's diverse climate allows for the cultivation of a variety of agricultural products. Cereals: India is a major exporter of cereals like rice and wheat, catering to markets in Asia, Africa, and the Middle East. Organic Foods: With the global shift towards healthy eating, India's organic fruits, vegetables, and grains have found a growing market overseas. 9. Handicrafts India's rich cultural heritage is reflected in its handicraft exports. Woodware and Artmetal Ware: Intricately designed wooden and metal crafts are popular in markets across Europe and North America. Handmade Textiles and Carpets: Traditional Indian textiles and carpets are valued for their craftsmanship and quality. 10. Petroleum Products India's refining capacity enables it to export various petroleum products. Refined Petroleum: India exports refined petroleum products to countries across Asia and Africa, contributing significantly to its export earnings. Petrochemicals: These are used as raw materials in industries like plastics, textiles, and pharmaceuticals globally. 11. Spices and Condiments India is the world’s largest producer and exporter of spices, supplying premium-quality spices to global markets. Chilli, Turmeric, and Cumin: Major importers include the US, China, and European countries. Processed Spice Blends: Ready-to-use spice mixes are gaining popularity in international markets. 12. Marine Products India ranks among the top exporters of seafood, catering to demand from the US, Japan, and Southeast Asia. Shrimp and Prawns: India exported $7.38 billion worth of marine products in 2023-2024. Fish and Other Seafood: Fresh and frozen seafood are widely exported worldwide. 13. Furniture and Wood Products The demand for Indian furniture and wood-based products is rising due to their durability and craftsmanship. Handcrafted Wooden Furniture: Exported mainly to the US, Europe, and the Middle East. Plywood and Veneers: Essential for construction and interior decor industries. Also check - Product Sourcing WareIQ: Redefining E-Commerce Fulfilment Regarding multi-channel fulfilment solutions, WareIQ stands out as a trusted partner for businesses of all sizes. Y-Combinator-backed eCommerce full-stack platform offering multi-channel fulfilment across D2C, Marketplaces, Quick Commerce, and B2B (General Trade & Modern Trade). Why Choose WareIQ? Pan-India Network: We operate a vast network of Seller Flex and FAssured complaint centres in over 12 cities, ensuring efficient last-mile delivery across more than 27,000 pin codes. Multi-Channel Fulfilment Platform: With plug-and-play integrations for major marketplaces like Amazon, Flipkart, and Myntra and D2C platforms such as Shopify and Magento, our platform supports seamless fulfilment across distributors and flagship stores. Advanced analytics capabilities help assess operational performance effectively. AI-Led Inventory Management: Our Inventory LogIQ solution minimises stockouts and automates replenishment, ensuring optimal inventory levels. Tech-Enabled Returns Management: We provide a sophisticated returns quality control solution that captures and stores media evidence of returned products, helping eliminate marketplace claim rejections. Comprehensive Seller Support: Benefit from dedicated account management, assistance with APOB/PPOB registrations, GST registration, and verification processes for NDR & COD. For businesses looking to scale their operations and enhance customer satisfaction, WareIQ offers a reliable, tech-driven solution. Learn more at WareIQ’s website. Also read - 10 Best Tips to Write Better Product Descriptions and Increase Online Conversions Summing Up India’s export sector continues to thrive, driven by diverse industries ranging from pharmaceuticals and engineering goods to textiles and petroleum products. The top 10 products to export from India offer significant growth opportunities for businesses looking to expand into international markets. With government initiatives such as PLI schemes and trade agreements, Indian exporters are well-positioned for success in 2025 and beyond. By leveraging logistics and fulfilment solutions like WareIQ, businesses can optimise their supply chains and enhance global trade operations. Suggested read - Effective Inventory Management with Product SKUs FAQs about Top 10 Products to Export from India What are the top 10 products to export from India in 2025?India exports a diverse range of products, including engineering goods, pharmaceuticals, textiles, electronic items, gems and jewellery, petroleum products, agricultural products, handicrafts, leather goods, and chemicals. These industries drive India's global trade growth.Which country imports the most from India's top 10 products to export from India?The United States, United Arab Emirates, China, United Kingdom, and Germany are among the biggest importers of India’s top export products, including pharmaceuticals, textiles, and engineering goods.How can I start exporting the top 10 products to export from India?To start exporting, register your business with the DGFT (Directorate General of Foreign Trade), obtain an Import Export Code (IEC), and follow export compliance. Partnering with logistics providers like WareIQ can streamline fulfilment.What is the highest export from India in recent years?Engineering goods hold the top spot among India's highest export categories, contributing over $100 billion annually. Pharmaceuticals, petroleum products, and textiles also rank among the most exported products from India.What factors influence the top 10 products to export from India?Government policies, global demand, trade agreements, and exchange rates impact the success of India’s top export items. Incentives like PLI schemes and improved logistics networks further boost exports.

June 06, 2025

DTDC Courier Charges: A Complete Guide to Shipping Costs

DTDC courier charges play a crucial role in determining the cost-effectiveness of shipping for businesses. As one of India's leading logistics providers, DTDC offers various courier services tailored to different needs, with pricing influenced by factors such as weight, destination, and service type. Understanding DTDC courier charges helps businesses optimise their shipping expenses and select the best service for their requirements. This comprehensive guide will explore DTDC courier charges and help you decide which is the right shipping service for your business. So, let’s get started! Overview of DTDC Services DTDC caters to B2B and B2C shipping needs across 14,300+ pin codes in India and 220+ international locations, making it one of the most widely used courier services. The company offers a range of service levels, from economical to express delivery options, ensuring businesses of all sizes find a suitable shipping solution. With a robust infrastructure of 16,500+ channel partners and 570 operating facilities, the company processes approximately 170 million parcels annually. By evaluating DTDC parcel charges, businesses can streamline logistics, enhance delivery efficiency, and keep costs under control. Key DTDC Services DTDC provides multiple service categories tailored for different business requirements: DTDC Lite: Cost-effective shipping solution for non-urgent shipments. DTDC Plus: Premium service with guaranteed fast delivery for critical shipments. DTDC Blue: Mid-tier service offering a balance of affordability and speed. DTDC Prime: Ultra-fast express service ensures rapid delivery of urgent packages. DTDC International Services: Reliable cross-border shipping to 220+ countries with customs clearance assistance. These services cater to diverse logistics needs, from eCommerce fulfilment to corporate deliveries, providing businesses with flexible shipping options. Factors Affecting DTDC Courier Charges Several factors impact DTDC courier price structures, including: Weight and Dimensions: DTDC calculates shipping costs based on either the actual weight or the volumetric weight, whichever is higher. The volumetric weight is determined using: (Length x Breadth x Height in cm) / 5000 (for air express and international shipping) (Length x Breadth x Height in cm) / 4750 (for surface shipping) Larger packages attract higher rates, especially for express and international deliveries. Destination: Charges vary based on the shipping distance, whether local, intrastate, interstate, or international. Remote locations may incur additional surcharges due to limited transport accessibility. Service Type: The shipping speed and priority level impact costs: Express services like DTDC Plus and DTDC Prime are costlier but offer faster delivery. Standard services like DTDC Lite are economical but have longer delivery timelines. Additional Services: Charges may increase for value-added services like insurance, Cash on Delivery (COD), and special handling. Fragile items, temperature-sensitive goods, and oversized shipments may have special surcharges. DTDC Domestic Courier Charges DTDC parcel charges for domestic shipments depend on weight, service type, and destination. Below is an estimated rate guide: Service TypeWithin the Same City (500g)Interstate (1kg)DTDC Lite₹40 – ₹100₹200 – ₹500DTDC Plus₹60 – ₹150₹250 – ₹600DTDC Prime₹80 – ₹250₹300 – ₹750 Note: These rates are approximate and subject to change based on specific shipping routes and extra services. DTDC International Courier Charges International shipping rates depend on factors like destination country, package weight, customs duties, and applicable taxes. DTDC offers express and economy options for international shipments, with pricing varying significantly by country. To get the most accurate pricing, it's advisable to consult the DTDC rate chart or contact customer support directly. (DTDC International Shipping) How to Calculate DTDC Charges per Kg? To determine how much DTDC charges per kg, follow these steps: Measure Package Dimensions: Calculate volumetric weight using the standard formula. Weigh the Package: Note the actual weight. Compare Weights: DTDC charges are based on the higher value between actual and volumetric weight. Refer to the Rate Chart: Find the applicable rate based on service type and destination. Include Additional Costs: Add insurance, COD, or other services if required. Let’s understand this with the help of an example: Example: Imagine a business needs to ship a parcel from Mumbai to Bangalore. The package has the following specifications: Actual Weight: 2 kg Dimensions: 30 cm x 20 cm x 10 cm Volumetric Weight Calculation: (30 x 20 x 10) / 5000 = 1.2 kg Chargeable Weight: Since the actual weight (2 kg) is higher than the volumetric weight (1.2 kg), DTDC will charge based on 2 kg. Note: In the volumetric weight calculation formula, 5000 is the divisor used for air express and international shipments to convert the package dimensions (in cubic centimetres) into kilograms. This standard divisor is set by courier companies to determine the chargeable weight of a package when its volumetric weight is higher than its actual weight. Related read - Domestic Courier Services in India DTDC Rate Charts The DTDC rate chart provides a structured breakdown of courier costs by weight brackets, service type, and destination zones. Businesses can refer to DTDC’s official website or visit a local branch for updated pricing details. Sample DTDC Rate Chart (for reference only) Weight (kg)Local (₹)Zonal (₹)National (₹)0.540 – 10050 – 12060 – 1501.080 – 200100 – 250150 – 3002.0150 – 350180 – 400200 – 5005.0300 – 700350 – 800400 – 1000 Tips to Optimise DTDC Shipping Costs Businesses can reduce shipping expenses by: Negotiating Bulk Rates: Large-volume shipments often qualify for discounted rates. Businesses can save significantly by committing to high shipping volumes. Choosing the Right Service: Selecting the most cost-effective service for specific delivery needs ensures businesses balance cost and speed. Optimising Package Size: Reducing package dimensions to lower volumetric weight can help businesses minimise shipping costs. Reviewing Invoices Regularly: Checking for billing discrepancies and ensuring cost accuracy prevents overpayments and incorrect charges. Suggested - Courier Charges in India Per Kg WareIQ: Redefining E-Commerce Fulfilment Regarding multi-channel fulfilment solutions, WareIQ stands out as a trusted partner for businesses of all sizes. Y-Combinator-backed eCommerce full-stack platform offering multi-channel fulfilment across D2C, Marketplaces, Quick Commerce, and B2B (General Trade & Modern Trade) Why Choose WareIQ? Pan-India Network: We operate a vast network of Seller Flex and FAssured complaint centres in over 12 cities, ensuring efficient last-mile delivery across more than 27,000 pin codes. Multi-Channel Fulfilment Platform: With plug-and-play integrations for major marketplaces like Amazon, Flipkart, and Myntra and D2C platforms such as Shopify and Magento, our platform supports seamless fulfilment across distributors and flagship stores. Advanced analytics capabilities help assess operational performance effectively. AI-Led Inventory Management: Our Inventory LogIQ solution minimises stockouts and automates replenishment, ensuring optimal inventory levels. Tech-Enabled Returns Management: We provide a sophisticated returns quality control solution that captures and stores media evidence of returned products, helping eliminate marketplace claim rejections. Comprehensive Seller Support: Benefit from dedicated account management, assistance with APOB/PPOB registrations, GST registration, and verification processes for NDR & COD. For businesses looking to scale their operations and enhance customer satisfaction, WareIQ offers a reliable, tech-driven solution. Learn more at WareIQ’s website. Suggested tool to Calculate Courier rate instantaly with DTDC Shipping Calculator Summing Up Understanding DTDC courier charges allows businesses to make informed decisions about shipping strategies and costs. By leveraging DTDC’s varied services, businesses can choose solutions tailored to their operational needs while optimising expenses. Additionally, integrating with logistics partners like WareIQ ensures seamless fulfilment and last-mile delivery efficiency, enhancing the overall shipping experience. Also read - How to Courier a Parcel: A Step-by-Step Guide FAQs about DTDC Courier Charges What are the latest DTDC courier charges for domestic shipping?DTDC courier charges for domestic shipping vary based on weight, distance, and service type. Prices start from ₹40 for local deliveries and can go up to ₹1000+ for national shipments. For accurate rates, refer to the DTDC official website.How much does DTDC charge per kg for interstate shipping?The cost of DTDC courier charges per kg depends on the service type and destination. For standard deliveries, rates range from ₹100 to ₹500 per kg, while express services may cost more.Where can I find the DTDC courier rate chart for my location?The latest DTDC rate chart is available on the official DTDC website or at local DTDC branches. It provides details on pricing for different zones, including local, zonal, and national deliveries.What factors affect DTDC parcel charges for international shipments?DTDC parcel charges for international shipping depend on the destination country, package weight, customs duties, and selected service type. Express services cost more but offer faster delivery times.Does DTDC offer discounts on bulk courier shipments?Yes, businesses can negotiate DTDC courier charges for bulk shipments. Large-volume shippers often receive discounted rates and customised pricing based on their shipping frequency and destinations.

June 05, 2025

Proforma Invoice: Definition, Uses, and Its Role in International Trade

International trade being done on a large scale requires a lot of documentation throughout the whole process. One important document that plays a vital role in ensuring transparency between a buyer and a seller is the proforma invoice. A proforma invoice may sound like any other invoice that a seller issues to a buyer, but it is way different due to its nature and its role. In today's article, we will dive deeper into the definition of a proforma invoice, along with its uses and how it is different from other invoices. What Is a Proforma Invoice? A proforma invoice is basically an estimated invoice that a seller issues to the buyer. This invoice is issued to the buyer before the shipment of goods. Hence, it serves as a detailed quotation and helps to confirm the transaction as it outlines the terms, cost and other specifications. However, contrary to a commercial invoice or a final invoice, a proforma invoice is not legally binding, and no payment is required after it is issued. To explain more simply, a proforma invoice is created by the seller to provide clarity and details about the transaction before making the deal final. This invoice helps both parties, the buyer and the seller, to be on the same page regarding every aspect of the trade. Key Features of a Proforma Invoice Not Legally Binding As there is no need to make payment, the proforma invoice is not legally enforceable. Hence, there are no legal consequences. The buyer does not make any payment after the pro forma invoices are issued; only final invoices require payment and have legal consequences. Preliminary Document A proforma invoice is an initial plan laid out by the seller to the buyer. It contains information about the trade, such as the cost, the shipping requirement, product, prices, quantities, and the terms of delivery. It is merely a starting point of the negotiations where the legal parties are not bound to make any transaction. It helps in understanding expenses. A proforma invoice states the vital information about the goods from the sellers to the buyer. It helps the buyer determine the approximate cost that they will have to pay if the transaction goes further. Offers Customisation Commercial invoices or final invoices are final, and no changes can be made to them. However, a pro forma invoice is customisable, meaning that various aspects of the transaction can be adjusted to the buyer's requirements. It offers a standpoint for negotiation between the buyer and the seller. Different Uses of a Proforma Invoice Price Negotiation A proforma invoice document acts as an initial plan that is created by the seller and sent out to the buyer for confirmation. After reviewing the details mentioned in the quotation or a proforma invoice, the buyer can then decide to negotiate the price and other terms of trade before finalising the deal. Obtaining Export-Import Licenses When it comes to international trade, several countries require specific export licenses. As the proforma provides more exhaustive information about the type of goods that are to be shipped, it can help facilitate the approval of import or export licenses. Custom Clearance A proforma invoice has all the details that are necessary, and it can help the customs authorities estimate the shipment value. The prior estimation of the shipment value can help with smooth processing and pre-clearance. Financing and Insurance Since a pro forma invoice can provide detailed information and estimated freight charges, it can help the buyer arrange for financing. The details on the proforma can also help you get insurance, as they offer creditworthiness. Ensures Mutual Agreement A seller can outline the transaction specifics in the proforma. If the buyer does not agree with any terms, they can be negotiated before creating the final invoice. This reduces the risk of dispute once that transaction is in motion. Also Read - Difference Between Consignor and Consignee and Certificate of Conformity in Global Trade Proforma Invoice vs Invoice: Key Differences A proforma invoice may sound similar to a standard invoice. However, they are different. Below are the key differences between commercial and proforma invoices. Comparison AspectProforma InvoiceCommercial InvoicePurposeThe purpose of a proforma invoice is to provide an estimate or a quotation to the buyerThe purpose of a commercial invoice is to raise the request for the payment of goods or servicesLegal statusA Proforma invoice is not a legally binding documentA commercial invoice is a legally binding documentTimingIt is issued before the transaction is finalIt is issued after the services are deliveredFinancial recordsProforma in-voice is not recorded in the accounting booksA commercial invoice is recorded in the financial accountingPaymentNo payment is requestedPayment is mandatoryUsesIt is used to obtain import export licence and for customs pre-clearanceIt is a must to get customs clearanceInformationA pro forma invoice contains details like the estimated cost and quantity of the goods to be transported along with the terms of sale, which is negotiableIt includes the actual cost of the goods and the finalised terms of sale Proforma Invoice vs Tax Invoice: Difference A proforma invoice is significantly different from a tax invoice in multiple aspects. Below is the differentiation between proforma invoice and tax invoice: Comparison AspectProforma InvoiceTax InvoicePurposeThe purpose of a proforma invoice is to provide an estimate or a quotation to the buyerA tax invoice is a document that reflects the applicable taxesLegal statusIt cannot be used to claim input tax creditsIt is used for tax purposes and creditsTaxesIt may or may not include tax detailsThe applicable taxes are mentioned in detail Demystify Invoices and Their Implications with Smart Shipping Solutions by WareIQ WareIQ'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 codes Control Tower & automated workflows to minimise NDR & RTOs Same/Next-day delivery courier options Seamless Integration with your WMS, ERPs and Storefronts Shipping Badges to display precise Estimated Delivery Dates (EDD) Custom branded tracking pages and notifications to enhance customer experience Suggested - What is the Order to Cash Process in Logistics? Conclusion A proforma invoice is a necessary document that is required in both domestic and international trade. It helps facilitate trade negotiations and customs clearance. It is a point of negotiation for buyers and sellers, where sellers can put down their requisites, and buyers can negotiate the terms that they are comfortable with. Exporters need to understand how to create an accurate pro forma invoice so that they can build trust with buyers and ensure smooth transactions. Also check - FCA vs FOB: Key Differences in Shipping Terms FAQs About Proforma Invoice Who creates a proforma invoice?The proforma invoice is created by the seller including details about the trade, such as the cost and quantity of goods, along with the terms of sale.Can you convert a proforma invoice into a final invoice?Yes, once the transaction is complete, it can be converted into a final invoice.Is issuing a proforma invoice mandatory?No, a proforma invoice is not mandatory, but this is recommended for better clarity.Does a proforma invoice include GST?Yes, a proforma invoice may include details about estimated GST.What is the validity of a proforma tax invoice?The validity of the proforma invoice depends upon the terms and conditions, which are mentioned in the invoice.

June 04, 2025