What is Forward Shipping?
Definition
Forward Shipping is the process of delivering a product from the seller's location or marketplace warehouse to the customer's delivery address. It is the standard shipping process that occurs when an order is placed and dispatched.
Detailed Explanation
Forward shipping is the most common type of shipping in e-commerce. When a customer places an order, the product travels from the seller's stock location to the customer's doorstep. This is forward shipping.
Types of Forward Shipping
- Marketplace-fulfilled shipping: The marketplace handles shipping using its logistics network (e.g., Flipkart's Ekart, Amazon's logistics)
- Seller-fulfilled shipping (FBM): The seller arranges their own shipping through third-party logistics providers
- Easy Ship: Marketplace provides shipping labels and pickup, but the seller packs the product
Factors Affecting Forward Shipping Cost
- Product weight: Heavier products cost more to ship
- Product dimensions: Volumetric weight may be used for bulky items
- Delivery zone: Distance from origin to delivery address
- Shipping speed: Standard vs. express vs. same-day delivery
- Pin code serviceability: Remote areas may have higher shipping costs
Impact on Seller Profit
Forward shipping charges are deducted from the seller's settlement. The cost varies significantly — a lightweight product shipped locally may cost ₹30-50, while a heavy product shipped across the country can cost ₹100-200 or more.
In cases of RTO or returns, the forward shipping cost is typically not refunded to the seller, making it a "lost" cost. This is why forward shipping is a critical factor in calculating true profitability.