Most D2C brands start with a 3PL (third-party logistics provider) like Shiprocket Fulfillment, Delhivery Fulfillment, or WareIQ. It makes sense: no upfront investment, pay-per-order, someone else handles packing and shipping.
But at a certain scale, 3PL costs become painful:
₹25-50 per order in pick-pack-ship fees (on top of courier charges)
At 1,000 orders/month, you could be paying ₹50,000-80,000/month in 3PL fees alone
Cost Comparison: 3PL vs Own Warehouse
Cost Component
3PL (1,000 orders/mo)
Own Warehouse (1,000 orders/mo)
Pick-pack-ship
₹30K-50K
₹0 (staff salary below)
Storage
₹8K-15K
₹0 (rent below)
Warehouse rent
₹0
₹15K-30K (500-1000 sq ft)
Staff (2 people)
₹0
₹25K-35K
Packaging materials
₹10K-15K
₹8K-12K (bulk pricing)
Courier charges
₹70K-100K
₹60K-85K (direct contracts)
Technology (WMS)
₹0 (included)
₹3K-5K/mo
Total monthly cost
₹1.2-1.8L
₹1.1-1.7L
Cost per order
₹120-180
₹110-170
At 1,000 orders/month, the costs are similar. The real savings kick in at 2,000+ orders/month when your fixed costs (rent, staff) spread across more orders.
The Breakeven Point
Orders/Month
3PL Cost/Order
Own Warehouse Cost/Order
Winner
Under 500
₹120-180
₹200-300
3PL (lower fixed costs)
500-1,500
₹120-180
₹110-170
Roughly equal
1,500-3,000
₹100-150
₹70-100
Own warehouse
3,000+
₹80-120
₹50-75
Own warehouse (significant savings)
The Hybrid Model (Best of Both Worlds)
Most successful D2C brands at 1,000-5,000 orders/month use a hybrid approach:
Own warehouse in your primary city — Handle 60-70% of orders (typically metro city where most customers are). Full control over packing quality and brand experience.
3PL in secondary regions — For orders going to distant cities/states where your warehouse would mean slow delivery. 3PLs with multi-city fulfillment centers handle the long-distance orders.
This gives you cost savings on the majority of orders while maintaining fast delivery nationwide.
When to Make the Switch
You’re consistently doing 1,500+ orders/month for at least 3 months
You need custom packaging — 3PLs charge extra for branded packaging. Your own warehouse lets you control the unboxing experience.
Returns processing is a nightmare — Managing returns through a 3PL adds delays and fees. Own warehouse = faster QC and restock.
Setting Up Your First Warehouse
Minimum Setup (500-1,000 orders/month)
500-800 sq ft space (industrial area, not commercial)
Rent: ₹15,000-25,000/month (tier-1 city suburbs)
2 full-time staff + 1 part-time during peak
Shelving: ₹20,000-30,000 one-time
Weighing scale + label printer: ₹15,000 one-time
WMS software: Unicommerce or Increff (₹3,000-5,000/month)
Total setup cost: ₹50,000-80,000 one-time + ₹55,000-85,000/month recurring
Need Help With Logistics?
At Growww Tech, we help D2C brands optimize their fulfillment — whether that’s negotiating better 3PL rates, setting up an own warehouse, or designing a hybrid model. Let’s optimize your logistics costs.
