Fair Local Delivery Rates: How to Price Deliveries by Distance

Why fixed delivery fees frustrate customers and hurt profits

Charging a single flat delivery fee across town creates an imbalance: customers who live just a few blocks away feel overcharged, while long-distance deliveries end up costing you more in fuel or courier fees than you collected at checkout.

Key takeaway: Distance-based delivery rates adjust automatically according to the customer map location, creating fair fees for shoppers and protecting your margins.

Step 1 — Set your store location as the central reference point

In your store Settings, enter your business address or drop a marker on the map:

• This point serves as the central reference pin from which all delivery distances are calculated.
• Make sure this location matches where packages are actually dispatched — whether from a commercial shop or a home kitchen.

Step 2 — Create tiered delivery zones by distance

Define delivery zones around your store using progressive radius tiers:

• Nearby zone (e.g., 0 to 3 km): Low fee or complimentary delivery for neighbors, encouraging frequent small orders.
• Mid-distance zone (e.g., 3 to 8 km): Moderate fee covering standard motorcycle or bicycle courier expenses.
• Extended zone (e.g., 8 to 15 km): Adjusted rate for distant deliveries, ensuring courier travel time is fairly compensated.
• You can also set a maximum delivery radius to prevent orders from locations outside your reachable area.

Step 3 — Let the checkout calculate accurate delivery rates automatically

When shoppers enter their address during checkout:

• The customer confirms their exact location using the map pin.
• The checkout calculates the precise distance and applies the correct delivery fee immediately to the order total.
• Customers see exact shipping costs before paying, eliminating surprises and delivery disputes.

Step 4 — Dispatch packages with complete location details

Every completed order includes the necessary delivery information:

• Couriers receive the customer name, phone number, and a direct map link pointing to the customer pin.
• Drivers find destinations without calling you or wandering around confusing streets.

Frequently asked questions

Next step

Next week: discover how to create manual phone and walk-in orders directly in your store dashboard using quick order entry.