How should I price my deliveries for my customers?

Many businesses offset the cost of delivery by charging their customers a delivery fee. The best approach depends on your business model, your customers' expectations, and how you want delivery costs to impact your margins.

Most businesses choose one of the following delivery pricing strategies:

Include Delivery in Product Pricing

Some businesses build delivery costs into the price of their products and advertise delivery as "free."

Pros

• Simple and easy for customers to understand
• Can increase conversion rates by removing delivery fees at checkout
• Creates a premium customer experience

Cons

• Product prices may appear higher than competitors'
• Customers who pick up orders in-store may end up subsidizing delivery costs

Charge a Flat Delivery Fee

A flat delivery fee applies the same charge to most deliveries, regardless of order size or value.

Pros

• Easy for customers to understand
• Predictable pricing for both the business and customer
• Simple to manage and communicate

Cons

• May not fully cover the cost of longer or more complex deliveries
• Small orders may become less attractive to customers if the fee feels high

Charge a Percentage of the Order Value

Some businesses charge delivery as a percentage of the customer's order total (e.g., 5–15%).

Pros

• Higher-value orders contribute more toward delivery costs
• Can help protect margins on larger deliveries
• Scales naturally with order size

Cons

• Customers may perceive delivery fees as expensive on high-value orders
• Delivery costs do not always increase at the same rate as order value

Pass Through the UniHop Delivery Cost

Some businesses simply charge customers the delivery fee quoted by UniHop.

Pros

• Ensures delivery costs are fully recovered
• No need to estimate or absorb delivery expenses
• Transparent pricing

Cons

• Delivery fees may vary from order to order
• Customers may be more sensitive to higher delivery charges during peak times or for longer distances

Consider Your Market

When choosing a pricing strategy, consider what your competitors offer and what your customers expect. Some businesses prioritize simplicity and customer convenience, while others focus on recovering delivery costs as accurately as possible.

Although it is possible to create more complex pricing structures based on factors such as stairs, item count, or delivery difficulty, these models can be challenging to manage without automated systems or dedicated staff. Most businesses find that a simple, consistent pricing approach works best.

What's Next?

Review your average delivery costs, order values, and customer expectations. Choose a pricing model that aligns with your business goals, then monitor performance and adjust as needed over time.

Updated on: 07/02/2026