Quick Answer

Logistics providers plug into ONDC as an independent network participant type, connecting through the same Becken Protocol that links buyer apps and seller apps — not through a direct deal with any single buyer app. Once integrated, a logistics provider like Shadowfax, Delivery, or Ship rocket becomes available as a fulfillment option to any seller on the network, and sellers can choose between these on-network logistics partners or their own delivery fleet for each order.

Every ONDC order eventually has to get from a seller's shelf to a buyer's door — and how that actually happens is one of the less-discussed parts of the network. Since ONDC deliberately separates buyer apps, seller apps, and delivery into independent roles (the same architecture covered in how buyer and seller apps connect through the network effect), logistics providers plug in as their own distinct participant type, rather than being built into any single buyer app. Here's how that actually works.

The Scale of ONDC's Logistics Network

A few data points that show how logistics integration has scaled on ONDC:

• Shadowfax was the first logistics provider to integrate directly with ONDC without an intermediary, and its integration brought hyperlocal delivery coverage to roughly 8,500 pin codes at launch — with the company separately reporting over 10 million deliveries processed monthly across its broader network

• Delhivery, one of India's largest logistics companies, joined ONDC to offer intercity deliveries across more than 18,000 pin codes, specifically framing the move as giving rural enterprises and small businesses access to customers nationwide

• Other logistics participants including Shiprocket, Dunzo, and Loadshare have each integrated with the network, giving sellers a genuine choice of fulfillment partner rather than being locked into one provider

The pattern across all of these integrations is the same one that defines ONDC generally: no single logistics company has to be chosen by ONDC itself — any Beckn-compliant provider can plug in and start receiving fulfillment requests from sellers across the network.

Logistics as Its Own Network Participant Type

On ONDC, a Logistics Service Provider (LSP) is a distinct role, separate from both the Buyer App (BAP) and Seller App (BPP). This matters because it means:

• A logistics provider doesn't need a direct relationship with every buyer app — it only needs to be Beckn-compliant to interact with any part of the network

• A seller managing orders across multiple warehouses can choose different logistics providers per location or per order, rather than being tied to whatever provider a single buyer app happens to prefer

• Buyers generally don't interact with the logistics provider directly — the buyer app surfaces delivery status and tracking, while the actual physical fulfillment happens through whichever LSP the seller has connected

On-Network vs Off-Network Logistics

• On-network logistics — a Beckn-compliant provider (Shadowfax, Delhivery, Shiprocket, etc.) that integrates directly with ONDC's protocol, allowing orders, status updates, and delivery confirmations to flow automatically through the same standardized messages used elsewhere on the network

• Off-network / in-house logistics — a seller's own delivery fleet or a third-party provider that isn't Beckn-integrated; this still works, but status updates and coordination typically have to be managed manually or through the seller app's own systems rather than the shared protocol

Most growing sellers move toward on-network logistics over time simply because it reduces manual reconciliation — the same reasoning covered in our guide on multi-warehouse management, where routing and tracking sprawl becomes a real operational cost at volume.

On-Network vs Off-Network Logistics — At a Glance

What Happens Technically When an Order Ships

• Once a buyer places an order, the seller app assigns it to a logistics provider — either automatically based on rules (cost, speed, coverage) or manually by the seller

• The logistics provider's system exchanges standardized fulfillment messages with the seller app — covering pickup, in-transit status, and delivery confirmation — using the same Beckn message format as the rest of the network

• Status updates flow back through the seller app to the buyer app in near real time, which is what allows a buyer to track an order regardless of which specific logistics provider is actually handling it behind the scenes — the same standardization that makes cancellations and returns work consistently across different sellers and providers

• If a delivery issue occurs — a delay, damage, or failed delivery — the logistics provider typically needs to supply proof (timestamps, photos, or status logs) as part of resolving any dispute raised through the network's grievance process

What This Means for Sellers Choosing a Logistics Partner

• Coverage — check pin code coverage for your target delivery areas; providers like Delhivery focus heavily on intercity reach, while others like Shadowfax emphasize hyperlocal and same-city delivery

• Delivery speed options — some providers are built specifically for quick commerce and hyperlocal same-day delivery, while others are optimized for standard intercity shipping

• Integration depth — a fully Beckn-compliant, on-network provider reduces manual work significantly compared to an off-network fleet that requires separate tracking and reconciliation

• Reverse logistics support — since returns are common enough to matter, check whether a provider handles reverse pickups as smoothly as forward deliveries

Frequently Asked Questions

Do sellers have to use an ONDC-integrated logistics provider?

No — sellers can use their own delivery fleet or an off-network third-party provider, but on-network, Beckn-compliant logistics providers generally offer smoother, more automated order tracking and status updates.

Which logistics companies have integrated with ONDC?

Several major providers have integrated, including Shadowfax, Delhivery, Shiprocket, and Loadshare, each offering different strengths in hyperlocal, intercity, or bulk shipping coverage.

Can a seller use different logistics providers for different orders?

Yes — since logistics providers are an independent network participant type, sellers can choose or route to different providers per order or per warehouse, based on cost, speed, or coverage.

How does a buyer track their order if multiple companies are involved?

Delivery status flows from the logistics provider back through the seller app to the buyer app in near real time, so tracking appears consistent to the buyer regardless of which specific provider is handling fulfillment.

What happens if a delivery is delayed or damaged on ONDC?

The logistics provider is typically responsible for providing proof or status logs as part of resolving the issue, coordinated through the seller and, if unresolved, escalated through ONDC's grievance process.

Choosing the Right Fulfillment Setup

Whether you're running one warehouse or several, matching the right logistics provider to each delivery zone matters more on ONDC than on a closed marketplace, simply because sellers have real choice here. A platform like COSTBO helps by syncing multi-warehouse inventory and order routing in one dashboard, so choosing between logistics options doesn't mean juggling separate systems per provider.

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About Costbo

Founded by Mr. Eswar and Mr. Ananth, with nearly 20 years of technology experience, Costbo is a leading ONDC seller platform powering India’s open digital commerce ecosystem. Costbo is among the first ONDC 1.2.0 certified seller platforms, enabling brands and sellers to sell on ONDC with fast onboarding, lower costs, and full operational control.

Ready to grow on ONDC? Start your journey with Costbo today.

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References

• Shadowfax announces integration with ONDC for hyperlocal and e-commerce deliveries — Logistics Insider

• ONDC: Transforming Digital Commerce Across India — Infomance

• ONDC Integration Guide for Indian E-commerce (2026) — Codingclave

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