Tackling product returns with AI: 5 startups simplifying delivery for D2C brands
From managing high return-to-origin rates to reducing cash cycles, AI-powered logistics solutions are helping D2C brands fight common hurdles in the industry. YourStory brings you five startups leading the charge.
The Indian D2C market was worth roughly $12 billion in 2022 and is projected to exceed $60 billion by 2027 (a ~40% CAGR), according to KPMG. However, behind the frenetic growth, even successful digital-first brands are running into roadblocks that threaten sustainable scaling.
Rising customer acquisition costs, overreliance on online marketplaces, and fragmented logistics networks are steadily eroding profitability.
One of the biggest leakages is in the last-mile delivery chain. Brands lose margins every day to missed or delayed deliveries, fake non-delivery reports (NDRs) from courier partners, and basic address errors.
Each failed delivery triggers a cascade of costs: extra logistics fees, repeated delivery attempts, longer cash cycles, and higher return-to-origin (RTO) rates. Inflated shipping charges due to weight discrepancies further squeeze already thin margins. And the damage isn’t just financial — long resolution times, inaccurate tracking, and poor delivery visibility often frustrate customers and erode brand loyalty.
AI-driven logistics startups are now stepping in to plug these leaks before they widen. By validating addresses in real time, nudging customers to confirm or update COD orders, and dynamically matching shipments with the most reliable courier for each route, these systems can significantly reduce failed deliveries and RTO rates at scale.
Some solutions even deploy AI voice agents to pre-empt delivery failures by confirming details with customers before dispatch. The result: faster fulfilment, lower operational costs, and a smoother delivery experience that boosts both margins and customer trust.
A new wave of AI-powered logistics solutions is rewriting the playbook. YourStory brings you five startups leading the charge for D2C brands.
Velocity’s Shipfast
Founded in 2020 by IIT Bombay graduates Abhiroop Medhekar, Atul Khichariya, and Saurav Swaroop, Velocity has enabled financing for over 1,300 e-commerce and D2C brands, including Soulflower, Suta, Imagimake, Frido, Koskii, Hammer, Bewakoof, and Chumbak.
In 2025, the company expanded into shipping aggregation with Shipfast, an AI-powered logistics platform. Designed for ecommerce brands, Shipfast enables same-day, next-day, and regular deliveries across major pincodes through brand websites by aggregating leading national and local third-party logistics (3PL) providers in each region.
The platform integrates AI and proprietary technology across the entire shipping workflow—from pre-dispatch checks to post-delivery validations. It addresses critical pain points such as high Return-to-Origin (RTO) rates, fake delivery attempts, and inaccurate addresses.
Shipfast’s AI calling systems enable real-time, human-like conversations at scale. According to the company, this removes the need for dedicated manpower to confirm COD orders.
Its AI-powered address verification and proprietary RTO Risk Score flag high-risk orders by evaluating address completeness and order details, enabling early interventions to prevent costly failed deliveries.
Brands using Shipfast have already reported 5–7 percentage point drops in RTO rates. Real-time AI calls catch 10–20% more incorrect RTOs, while AI tools also help verify weight discrepancies and automate dispute resolution. Faster delivery is a core focus area as every extra day in transit can increase return likelihood by up to 5% in the quick commerce era.
"At Shipfast, we’ve reimagined shipping workflows to eliminate hidden fees and opaque practices, creating a platform that puts transparency and efficiency at the core of ecommerce logistics. The result is a seamless, in-house-like logistics experience that drives faster, leaner, and more reliable operations, safeguarding brand margins," said Abhiroop Medhekar, Co-founder and CEO of Velocity.
Shiprocket Copilot
Ecommerce enablement platform Shiprocket has launched Shiprocket Copilot—an AI-powered virtual assistant designed to help Indian MSMEs manage and expand their digital businesses.
Launched last year, Shiprocket Copilot’s chat-based interface guides sellers through everyday tasks, offering features like live package tracking.
Shiprocket utilizes AI throughout the delivery lifecycle to assist brands in minimising RTO and Non-Delivery (NDR) losses. At checkout, its systems verify addresses in real time, flag high-risk COD orders, and encourage prepaid payments. Before dispatch, predictive models validate order details, assess category risk, and match shipments with the best-performing courier for that route. In transit, AI monitors shipments and enables quick rerouting or reattempts. For last-mile issues, geo-location audits, historical delivery data, and automated multilingual follow-ups ensure genuine delivery attempts are made, helping brands recover potentially lost orders.
"Shiprocket Copilot was inspired by the everyday challenges we saw small businesses face in the ecommerce space,” shared Saahil Goel, MD & CEO of Shiprocket, earlier during the launch.
“RTOs, NDRs, and fake delivery attempts aren’t just logistics issues — they’re silent revenue killers. Our AI works end-to-end: flagging risky orders at checkout, validating and assigning the right courier pre-ship, and closing the last-mile loop with multilingual, personalized calls and location audits. This approach has helped brands recover up to 60% of orders that would’ve been lost — and ensures fake attempts don’t slip through the cracks,” shared Saahil Goel, MD & CEO of Shiprocket.
Unicommerce’s Shipway
Shipway, the logistics arm of Unicommerce, has broadened its delivery capabilities to include same-day, next-day, and hyperlocal options in key metros like Delhi, Mumbai, Bengaluru, and Pune.
The move comes as D2C brands face growing pressure to meet rising consumer expectations for faster and more predictable deliveries.
One of the persistent challenges in ecommerce fulfillment has been the high rate of RTO orders, which can erode margins and disrupt supply chains.
Shipway has introduced a set of tools aimed at tackling this problem, including automated confirmation for cash-on-delivery orders, address verification before dispatch, and WhatsApp-based systems for customers to correct or reschedule deliveries in real time. For high-value or sensitive shipments—where automation may not be enough—the company supplements these processes with manual calling support to verify details and reduce failed deliveries.
By combining automation with selective human intervention, Shipway aims to create more reliable last-mile operations while helping sellers cut costs linked to missed or returned orders.
ClickPost ReturnsPro
Founded by Naman Vijay and Prashant Gupta, ClickPost uses AI-powered solutions to help brands reduce returns and exchanges by predicting potential issues before they happen.
ClickPost ReturnsPro analyses customer and order data to identify high-risk returns and then automatically sends out personalized nudges encouraging customers to choose exchanges instead.
“This not only reduces the number of returns but also boosts customer satisfaction. Additionally, ClickPost automates the approval process for returns, streamlining operations and cutting down on manual work. The platform also provides real-time tracking, so both brands and customers can easily track return shipments, ensuring greater transparency,” says Naman Vijay, Co-founder & CEO, ClickPost
By offering flexible return policies and the option for store credits or exchanges, ClickPost helps brands retain revenue and create a better overall customer experience, all while lowering return-related costs.
"We always say that a customer's journey doesn't end at checkout — it's just the beginning. With ClickPost, D2C brands can use AI to turn their delivery process into a competitive advantage, reducing returns and building customer loyalty. When brands get logistics right, sales follow naturally, and that’s where we come in." — Naman Vijay, Co-founder & CEO, ClickPost
Some of its prominent clients include Nykaa, ABFRL, Snitch, Purplle, Decathlon, Puma, Adidas, among others.
NimbusPost
Founded in 2019, NimbusPost leverages technology, data, and AI to deliver insights to D2C brands and product owners to make the right choices, which further helps deliver a superior customer experience.
NimbusPost enables ecommerce sellers, SME’s and D2C Brands with their order fulfilment process within India and globally. The company has partnerships with India’s leading logistics companies, including DTDC, Blue Dart, Delhivery, XpressBees, Shadowfax, Ekart, and others.
“We’re partnering with bold, ambitious new-age brands, helping them tackle real challenges like abandoned carts, juggling multiple sales channels, weight disputes, fake delivery attempts, and high COD orders that mess with cash flow. NimbusPost makes this easier with features like order nudges, automatic syncing, weight freezing, follow-ups, early order confirmations, and faster COD payouts. Plus, with personalized insights and hands-on support, we help brands focus on growing and giving their customers a great experience,” says Irwin Anand, CEO, NimbusPost.