How Festival Season Impacts Courier Rates and Delivery Times in India?

India’s festive calendar, starting from Navratri, Dussehra, and Diwali, and continuing through Christmas to the New Year, drives massive e-commerce demand. Whether it’s Flipkart’s Big Billion Days Sale, Amazon’s Great Indian Festival, Myntra’s Big Fashion Festival during Navratri and Diwali, or Nykaa’s Pink Friday Sale, order volumes tend to explode during this period. According to The Economic Times, brands are expecting a 15–20% jump in order volumes over last year, fueled largely by rising demand from smaller cities. 

It’s also when order volumes explode. Millions of parcels are in transit at once, courier networks run at full capacity, and sellers face a delicate balance in how to keep delivery promises without letting courier costs eat into margins.

Where This Order Volume Surge Is Coming From

Festive rush may come from all directions, but the past trend recorded by Shipway tells that smaller towns are now a major force in driving sales. 

In previous years, big cities (Tier 1) accounted for just over a quarter of orders, while metro cities contributed about one-fifth.

Tip for Brands During Peak Season Surge:

• Prioritize stocking inventory closer to high-demand locations, 
• Strengthen last-mile delivery coverage, and 
• Ensure adequate capacity in metros and Tier 1 cities to handle steady urban demand.

Although brands can streamline their inventory planning during the festive season, managing courier partners,  especially when rates are fluctuating in festive times, and maintaining delivery timelines, brings another layer of challenge. Let’s understand how this impacts courier charges and delivery timelines. 

What is the Impact of the Festive Season On Courier Charges and Delivery Timelines in India?

When the festive season is around the corner, consumers wait eagerly for their orders,  whether it’s a great deal or gifts for loved ones. However, studies show that many abandon their carts if the estimated delivery date feels too far away.

This behavioral change during the festive season reflects that there is a lot of pressure on courier partners during this time and that’s why their rates also get impacted. For instance, on normal days, a courier may charge ₹20 for a standard delivery, but during the festive season, like Big Billion Days or Great Indian Festival,  the same delivery can cost ₹23, which is a 15% increase due to peak-season surcharges and higher demand.

Similarly, a parcel that usually takes 2 days to deliver may take 4 days during this period because of heavy order volumes and network congestion. To survive the struggle of the festive season rush, brands need to understand the market dynamics and adapt their strategies accordingly.

Understanding the Market Dynamics During the Festive Season 

To truly make the most of the festive season, brands must first understand the shifting market dynamics, ranging from fluctuating courier rates to extended delivery timelines, before diving into strategy.

1. COD v/s Prepaid 

Last year, Shipway’s data showed that Cash on Delivery (COD) orders went up from 41%  in October to 47% in December during the festive season, while prepaid orders dropped from 58% to 51% in the same period. 

How can the rise in COD orders impact the brands?

A rise in COD orders can affect a brand’s cash flow since payments are received later, unlike prepaid orders. It also increases the risk of returns or refusals at delivery, which can lead to higher logistics costs and inventory getting stuck in reverse transit.

Tips to Manage COD Orders Better in the Upcoming Festive Season

Here are some of the best ways to manage COD orders 

Automate COD Reconciliation 

Get early COD remittances to manage cash flows.

Confirm Orders Before Shipping 

Reduce fraud and RTOs by verifying orders via call, SMS, or WhatsApp.

Validate Addresses Early 

Check delivery details before dispatch to avoid failed deliveries.

2. Air v/s Surface Shipping 

Past trends recorded by Shipway show that during the festive quarter, air shipping volumes rose by 11%, while surface shipping declined by nearly 6%. This festive season, brands can use this insight to align their logistics strategy with evolving consumer preferences and stay ahead of the trend.

How Can the Rise in Air Shipping Impact Brands?

As the customer perception shifts, more orders are shipped by air, and consumers start expecting shorter delivery windows, same day or next day, even during the festive season. This leads to higher logistic costs and impact on return & reverse logistics.

Tips to Manage the Shift Toward Air Shipping This Festive Season

Air shipping, when compared to surface shipping, is costlier, so optimize stock placement across warehouses to balance delivery speed with cost efficiency. Strategic inventory positioning helps minimize air freight distances, control expenses, and still meet promised delivery timelines.

3. High Non-Delivery Rate

High NDR rates not only delay order fulfillment but also increase reverse logistics costs and affect customer satisfaction. Past trends show that Non-Delivery Reports peaked in November at around 37%, higher than in October and December, indicating that festive season demand spikes often lead to more delivery failures.

How High NDR Rate Can Impact E-commerce Brands?

For e-commerce brands, high non-delivery rates can be frustrating, driving up costs, blocking inventory, cutting into revenue, and ultimately shaking customer trust.

Tips To Manage High NDR Rate in the Upcoming Festive Season 

November saw the highest NDR incidence but also the best recovery rates, suggesting that while festive mid-season brings the most delivery challenges, proactive follow-ups and courier coordination can significantly improve success rates, especially for COD orders.

Validate Addresses and Contact Details 

Collect accurate addresses and phone numbers at checkout, and add extra fields for landmarks to help couriers locate customers easily.

Use OTPs or Calls for COD Orders 

Confirm cash-on-delivery orders through OTP verification or a quick call, or require a small prepayment to reduce fake or refused deliveries.

Follow Up on Delivery Attempts 

If a delivery fails, immediately call or message the customer to confirm details and arrange a prompt reattempt.

How the Festive Season Impacts Courier Performance?

One of the most overlooked yet critical aspects of festive season readiness is courier performance. While e-commerce brands plan inventory, promotions, and order flows, the actual delivery experience rests heavily on the shoulders of courier partners. And during high-demand periods like Diwali, Christmas, or New Year’s sales, courier performance often becomes unpredictable.

According to Shipway’s findings, courier success rates vary dramatically across the season. Some partners are consistent, maintaining stable delivery percentages from October through December. Others start strong in the early weeks but see their efficiency dip sharply as order volumes peak in November. A few carriers even recover mid-season by adding extra manpower, vehicles, or regional hubs, only to struggle again in the final two weeks as the pressure of last-minute orders intensifies.

For e-commerce brands, this volatility makes courier selection a constant challenge. A courier partner that seemed reliable in October may suddenly show longer delivery timelines or higher RTO (Return to Origin) percentages in late November. Even the most trusted names can face resource constraints, weather-related delays, or operational bottlenecks when volumes surge beyond capacity.

This is where shipping aggregators like Shipway play a vital role. Instead of relying on a single courier, brands can:

• Compare performance metrics across multiple partners in real time, such as delivery success rates, average turnaround times, and NDR (Non-Delivery Report) patterns.
• Switch couriers dynamically based on lane-level performance (e.g., one courier may excel in Tier 1 cities while another delivers better results in Tier 2/3 regions).
• Negotiate competitive rates by leveraging aggregator partnerships, ensuring brands don’t pay a premium despite seasonal demand spikes.
• Balance workloads across partners to avoid over-reliance on a single courier, reducing the risk of delays or service breakdowns.

With features like Shipway’s auto-courier allocation system, brands can automatically assign shipments to the best-performing courier based on live data and historical success rates. The result is smoother fulfillment, fewer delivery failures, and a much better customer experience, even when the festive season load is at its peak.

How a Courier Service Aggregator Like Shipway Can Help You?

Shipway is a shipping aggregator that helps e-commerce brands streamline logistics by connecting them with multiple courier partners, offering automated tracking, and enabling seamless integration with popular sales platforms.

1. RTO Reduction Suite

If high RTOs are eating into your margins, Shipway’s RTO Reduction Suite gives you the tools to reduce RTO rates, boost delivery success, and stay in control without extra manual work.

Key features include:

• Fraud Detection – Auto-flag risky or repeat COD orders before dispatch.
• COD Confirmation – Use OTPs or WhatsApp prompts to confirm genuine orders.
• Smart NDR Handling – With Shipway’s NDR Management, you get a single dashboard to track all undelivered orders in real time, along with reasons, reattempts, and updates, so you can resolve issues faster and improve delivery success.
• Early COD Remittance –Improve your cash flow with quicker access to funds, ensuring COD payments are settled within just 2 days.
• Courier Intelligence –  Assign the best courier for each zone based on past performance with our AI-powered courier allocation solution, Shipsense.
• Actionable Dashboards – Track RTO patterns by PIN code, courier, or product.

Brands using Shipway have reduced RTOs by up to 30% in weeks, making every festive shipment count.

2. Returns Management

In the festive season, returns can be overwhelming, but Shipway’s Returns & Exchange Management streamlines the entire process for speed, accuracy, and customer satisfaction.

Key features include:

• API Integration – Connect with all major carriers for automated reverse pickups.
• Multi-Drop Capability – Schedule pickups with deliveries to multiple locations in one go.
• RMA Clubbing – Combine multiple return requests under a single AWB to cut costs.
• Quality Check Options – Verify product condition at pickup to avoid disputes.

With Shipway, brands can handle festive return spikes efficiently, reduce operational load, and keep customers coming back.

 3. Tracking & Post-Purchase Experience

During the festive season, it’s crucial to keep customers informed about exactly where their package has reached to maintain trust and reduce support queries. With Shipway Delight, you can keep your customers informed about their order with timely updates and a branded experience.

Key features include:

• Branded Tracking Page – A tracking page is more than just a way for customers to check order status,  it’s also a powerful branding touchpoint. With Shipway’s branded tracking page, you can keep customers within your own ecosystem. The page is customized to match your store’s theme, logo, and design, ensuring a seamless brand experience at every step. Instead of promoting courier companies, you use tracking as an opportunity to reinforce trust, build loyalty, and even drive repeat purchases.
• SMS & WhatsApp notifications – Timely order updates on SMS, email and WhatsApp whenever the order is shipping or out for delivery

Final Say

The festive season brings unmatched opportunities for e-commerce, but it also adds layers of complexity to courier management, delivery timelines, and returns. Brands that prepare early, track courier performance closely, and use automation tools are the ones that stand out in customer experience while keeping costs under control.

Take the stress out of festive logistics with Shipway,  from courier allocation to RTO reduction and branded tracking, everything you need is in one place. Start shipping smarter with Shipway today!