SECTION 01
Find the cost behind each parcel
A courier's outbound quote is only one part of delivery cost. Packaging, COD collection fees, failed delivery attempts, return charges and replacement shipments can all affect what you keep. Use your own invoice or courier contract for each destination; published rate cards often omit surcharges or depend on parcel weight.
Keep two numbers: cost when the parcel is delivered, and cost when it comes back. That makes a free-shipping offer much easier to judge. A checkout charge can recover some cost, but it cannot rescue a product whose margin disappears after a return.
Courier quote, fuel or remote-area surcharge and COD collection charge.
Box or mailer, padding, label and the staff time you choose to include.
Expected return cost divided across the orders you dispatch, using your own return history.
WORKED EXAMPLE
Illustrative cost, in PKR
- Courier and COD collection
- 260
- Packaging
- 45
- Return allowance
- 35
- Total delivery cost to plan for
- 340
These are example inputs, not a current courier price. Replace every line with your own quote and return data.
SECTION 02
Decide what the shopper sees at checkout
A flat rate is easy to explain when most parcels have similar weight and destinations. If large, fragile or remote-area orders cost more, use separate shipping options or market rates where your store supports them. The checkout label should describe the service a buyer will receive, not promise a courier or delivery speed you cannot guarantee.
Suppose delivery costs you Rs 340 and you charge Rs 200. The remaining Rs 140 must come out of product margin. That may be reasonable for a healthy basket; it may erase profit on a low-value item. Compare at least your smallest common basket, average basket and a heavy or remote order before saving the rate.
One standard rate for comparable parcels, with an honest delivery-time estimate.
A standard and a faster option only when you can actually fulfil both.
Handle unusually heavy or special-location orders with a stated policy before taking payment.
SECTION 03
Set a free-delivery threshold from margin
A threshold should encourage a larger useful basket, not turn a profitable order into a loss. Estimate the product contribution margin after product cost and variable payment costs. Then find the smallest basket where that margin can absorb your planned delivery cost and still leave your target contribution.
For example, if your product contribution is 30% and delivery costs Rs 340, a Rs 1,000 cart leaves roughly Rs 300 before delivery and falls short. A Rs 2,000 cart leaves roughly Rs 600, which may support the offer. This is a simplified example: use your real mix of products, discounts and return rates.
SECTION 04
Run a small test before promoting the offer
Place a test order for each shipping option and market you intend to sell into. Check the rate label, delivery-time text, charged amount and order record. Then review real orders weekly: average shipping collected, actual courier invoice, packaging cost and returns. If the gap widens, change the rate or product pricing before scaling ads.
The courier account and checkout charge are separate choices. In Eekaam, setting a rate does not book a parcel. BlueEx booking is live through the Courier integration app; other couriers can be fulfilled manually with tracking recorded on the order.
Save rates, test checkout and verify your promised delivery time.
Compare customer shipping payments with actual landed delivery costs.
Record the full cost of the round trip, including any second attempt or return fee.