Shipping and logistics are the physical backbone of e-commerce, and in Bangladesh, they present unique challenges — from fragmented address systems to cash-on-delivery dominance. Integrating courier services, managing COD reconciliation, and providing real-time tracking are technical challenges that directly impact customer satisfaction and operational efficiency. This guide covers the practical aspects of building logistics integrations for Bangladeshi e-commerce platforms.
The Bangladesh Logistics Landscape
Bangladesh's e-commerce logistics ecosystem has matured significantly. Major providers include Pathao Courier, Steadfast, RedX, Paperfly, and eCourier, each offering API integrations for automated order fulfillment. The market is characterized by high COD ratios (often exceeding 70%), limited standardized addressing, and varying delivery reliability across regions. Dhaka and Chittagong enjoy next-day delivery from most providers, while remote districts may require 3-5 business days.
Courier API Integration Architecture
A well-designed logistics integration abstracts courier-specific APIs behind a unified shipping interface. This abstraction layer translates your order data into courier-specific formats, handles authentication for each provider, and normalizes tracking responses. When you need to switch or add courier providers, only the adapter layer changes — your order management system remains untouched.
The integration flow for most Bangladeshi couriers follows a standard pattern: authenticate using API credentials, create a consignment (shipment) with recipient details and package information, receive a tracking number and label, monitor delivery status through status polling or webhooks, and reconcile COD settlements.
Pathao Courier Integration
Pathao's merchant API requires OAuth2 authentication with client credentials. After obtaining an access token, create consignment requests with recipient name, phone number, address, product value, and delivery type (regular or express). Pathao assigns a consignment ID and generates a barcode for the package label. Their webhook system pushes delivery status updates including picked, in-transit, delivered, and returned states.
Steadfast Integration
Steadfast provides a REST API with API key authentication. Their create-order endpoint accepts similar parameters — recipient details, COD amount, and special instructions. Steadfast's strength is their extensive coverage network across Bangladesh, including rural areas. Their bulk order API is particularly useful for high-volume merchants processing hundreds of daily shipments.
Address Handling Challenges
Bangladesh lacks a standardized postal address system comparable to ZIP codes in the US. Addresses are typically free-text descriptions referencing landmarks, roads, and area names with inconsistent formatting. Build your address collection forms with structured fields: division, district, thana/upazila, area, and detailed address. Use phone number-based delivery coordination as a fallback — couriers in Bangladesh routinely call recipients for delivery directions.
Maintaining a curated database of delivery zones with associated courier coverage and delivery time estimates improves the customer checkout experience. Display accurate delivery estimates based on the destination area and selected courier, reducing post-purchase anxiety and support inquiries.
Cash on Delivery Management
COD management is perhaps the most operationally complex aspect of Bangladeshi e-commerce logistics. The merchant ships a product, the courier collects payment from the customer, and the courier remits the collected amount to the merchant after deducting delivery charges and service fees. This settlement cycle typically takes 2-7 days after delivery.
Build a COD reconciliation system that tracks every shipment through its financial lifecycle: shipped, delivered, COD collected, settlement initiated, settlement received. Automatically match courier settlement reports against your order records to identify discrepancies — missing payments, incorrect amounts, or settlements for undelivered orders. Alert finance teams to unresolved discrepancies exceeding defined thresholds.
Reducing COD Return Rates
COD return rates in Bangladesh can exceed 15%, representing significant wasted shipping costs. Technical strategies to reduce returns include order confirmation via automated phone calls or SMS before dispatch, advance partial payment collection (even small amounts reduce return probability dramatically), and predictive scoring models that flag high-risk COD orders based on customer history, order patterns, and address characteristics.
Real-Time Tracking Implementation
Customers expect real-time shipment tracking. Implement a tracking aggregation service that normalizes status updates from multiple couriers into a consistent format. Your tracking page should display a visual timeline of shipment progress, estimated delivery date, and the courier's contact information. Push notifications via SMS or app notifications at key milestones — shipped, out for delivery, delivered — enhance the customer experience and reduce "where is my order" support requests.
Multi-Courier Routing
Intelligent courier selection based on destination, package characteristics, and historical performance optimizes both cost and delivery speed. Build routing rules that consider each courier's strengths: Pathao for Dhaka express delivery, Steadfast for nationwide coverage, and specialized providers for fragile or oversized items. A/B test courier assignments to continuously optimize routing decisions based on delivery success rates and customer satisfaction data.
At Nexis Limited, we build logistics integration layers that connect Bangladeshi e-commerce platforms with multiple courier services through a unified API. Explore our services or contact us to streamline your shipping operations.