Fees
A Shipping Method represents a delivery service offered to fulfill orders. This service can include additional charges (fees) applied per order, typically paid by the customer.
Fees can be either fixed (a constant amount per order) or dynamic (varying based on monthly order count).
Applying Fixed Fees
If you choose to apply fixed fees, the same fee is applied per order across all orders. Fixed fees can be configured for either Base fees, RTO fees, or both simultaneously, depending on your operational setup.
Base Fees: applied per order to all successfully delivered orders
Example: $3 is charged for every delivered orderRTO Fees: applied per order to all successfully returned orders
Example: $2 is charged for every returned order
Applying Dynamic Fees
If you choose to apply dynamic fees, the fee applied per order varies based on the total number of orders processed per month.
Set an Anchor Date to define the start of the monthly cycle, then configure ranges, where each range represents an order count bracket with its own fee—this applies the same way for both Base and RTO fees.
Dynamic fees can be configured for either Base fees, RTO fees, or both simultaneously:
Base Fees: applied per order to all successfully delivered orders, where the per-order fee is determined by the total number of delivered orders within the monthly cycle (based on the configured ranges)
Example: If you configure the brackets as follows:
0–100 orders → $5 each
101–200 orders → $4 each
201+ orders → $3 each
If 225 orders are delivered in a month:
First 100 orders → 100 × $5 = $500
Next 100 orders → 100 × $4 = $400
Remaining 25 orders → 25 × $3 = $75
Final Fee: $975 for 225 delivered orders
RTO Fees: applied per order to all successfully returned orders, with the fee varying based on the total number of returned orders within the monthly cycle
Example: same logic applies as Base Fees, based on total returned orders
👉 Follow the step-by-step guide to configure dynamic fees
Surcharge by Volume
This cost is applied when the total volume of an order’s package(s) exceeds a defined threshold. Once that limit is crossed, the system automatically adds a surcharge charged to the customer, which can be configured as either flat or dynamic surcharges.
Flat: a fixed additional fee, no matter how much the threshold is exceeded
Example: If the threshold is 1,000 cm³ and the flat fee is $2, any order exceeding 1,000 cm³ will be charged $2
👉 Follow the step-by-step guide to configure flat volume surcharges
Dynamic: a fee applied per additional unit (cm³) beyond the defined threshold, so the surcharge increases based on how much the total package volume exceeds that limit
Example: If the threshold is 1,000 cm³ and the fee is $0.05 per additional cm³:1,200 cm³ → exceeds by 200 cm³ → surcharge = 200 × $0.05 = $10
1,500 cm³ → exceeds by 500 cm³ → surcharge = 500 × $0.05 = $25
Surcharge by Weight
This cost is applied when the total weight of an order’s package(s) exceeds a defined threshold. Once that limit is crossed, the system automatically adds a surcharge charged to the customer, which can be configured as either flat or dynamic surcharges.
Flat: a fixed additional fee, no matter how much the threshold is exceeded
Example: If the threshold is 10 kg and the flat fee is $2, any order exceeding 10 kg will be charged $2
👉 Follow the step-by-step guide to configure flat weight surchargesDynamic: a variable fee applied per additional unit (kg) beyond the defined threshold, so the surcharge increases based on how much the total package weight exceeds that limit
Example: If the threshold is 10 kg and the fee is $0.50 per additional kg:12 kg → exceeds by 2 kg → surcharge = 2 × $0.50 = $1
15 kg → exceeds by 5 kg → surcharge = 5 × $0.50 = $2.50
Surcharge by Distance
Add an extra fee charged to the customer based on the driving distance required to deliver the order to its destination.
Distance surcharges are configured using ranges (slabs), where each slab represents a specific distance range, and each range has its own surcharge rate—allowing the cost to increase progressively as distance increases.
Example:
0–10 km → $2 per km
11–20 km → $5 per km
21–30 km → $8 per km
If an order requires 26 km of driving distance:
First 10 km → 10 × $2 = $20
Next 10 km (11–20 km) → 10 × $5 = $50
Remaining 6 km (21–26 km) → 6 × $8 = $48
Final Surcharge: $118 for 26 km
Note: If you configure only one slab (e.g., 0 → ∞), its rate is applied to the entire distance for all orders.
Example: If the rate is $2 per km and an order requires 20 km, the surcharge = 20 × $2 = $40.
Surcharge by Delivery Zone
Apply different delivery costs charged to the customer based on the zone where an order is delivered or returned. Zones are defined in your Settings (Delivery Zones), allowing you to set tailored rates for each area.
Note: If no delivery zones are created, none will be available for selection when configuring zone-based surcharges.
Example: Add $15 for deliveries to remote or high-cost service zones.
Additional Notes
Fees and surcharges are optional configurations and do not impact the creation of a Shipping Method.
They can be set up during the shipping method’s creation process or added later, and can be edited at any time to adapt to operational changes.
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