What is Dead Freight in E-Commerce?

Dead Freight refers to courier shipping charges billed on orders that were cancelled or refunded prior to warehouse dispatch or courier pickup.
📐 Formula: Dead Freight Loss = Billed Forward Shipping Fee on Cancelled AWB Status

In Indian e-commerce logistics, Dead Freight occurs when an order is cancelled or refunded in Shopify, but the cancellation event fails to sync to the 3PL aggregator (Shiprocket, Delhivery) in real time. Because the shipping manifest was already printed, the courier bills the merchant for forward freight—even though the package never left the warehouse dock.

On high-velocity stores shipping 3,000+ orders a month, Dead Freight quietly burns ₹15,000 to ₹40,000 every single month.

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