Calculate delivery, packaging and preparation costs before setting a shipping charge. Then choose whether to charge the actual cost, a flat area fee or a qualifying free-shipping offer. Check that your margin covers any amount you absorb. Explain the delivery conditions before customers complete payment.
In 30 seconds
- Charge at least your real cost: delivery, packaging and prep time.
- Choose: real cost, a flat fee per area or free shipping above a minimum.
- Offer free shipping only if the order margin covers it.
The AMVO Online Sales Study 2026 identifies shipping cost as the leading reason for abandoning a website purchase. Show the delivery charge before payment.
What does each delivery really cost you?
Count the delivery service, packaging, preparation time and any repeat deliveries when calculating your cost. Ignoring those extra tasks can make a shipping charge look more profitable than it is. Use your own order records rather than estimates alone. Review the total before setting customer prices.
| Item | Cost per order |
|---|---|
| Delivery (service or trip) | Your confirmed transport cost |
| Packaging (box, board, label) | Your packaging cost |
| Time to prepare the order | Preparation time × value of your hour |
| Repeat deliveries | Your repeat delivery costs ÷ orders |
| Real cost per delivery | Transport + packaging + preparation + repeat deliveries |
Use your own records. Charging only the transport cost can leave packaging, preparation and repeat deliveries uncovered.
How do you calculate cost per delivery with a dedicated block?
Divide the block price by the deliveries you expect to complete. Then add packaging and preparation costs for each order. Use the planned route to estimate the stop count before choosing a customer shipping fee. Combining areas can reduce the number of deliveries completed within one block.
Work out your cost per delivery with your own numbers.
Formula: cost per delivery = block price ÷ number of deliveries. Use your confirmed quote and planned delivery count. That's why it pays to group your orders on fixed delivery days.
Three ways to charge for shipping
You can charge actual delivery costs, set a flat area fee or offer free shipping above a minimum order. Each approach places a different share of the cost on your business. Compare it with your margin and typical order size. Explain coverage and conditions before payment.
| Method | How it works | Advantage | Risk |
|---|---|---|---|
| Real cost | The customer pays what their delivery costs | You never lose money on shipping | An expensive delivery can stop the sale |
| Flat fee per area | One price per area (e.g. west Mexico City / rest of the city) | Easy to explain and charge | Some deliveries cost more than the fee |
| Free above an amount | Free shipping if the order exceeds a set amount | Raises the average order value | If the threshold is too low, shipping eats the margin |
When does free shipping make sense?
Free shipping works when the order margin covers delivery costs and still leaves a profit. Check the margin at your proposed minimum order before publishing the offer. Include packaging and preparation time in that calculation. Review the threshold when product costs or delivery patterns change.
| Average order | Your average order value |
|---|---|
| Free-shipping minimum | Your proposed order minimum |
| Margin at your proposed minimum | Order value × your margin |
| Real shipping cost | Your calculated shipping cost |
| Profit after shipping | Order margin − total shipping cost |
How do you get customers to accept paying for shipping?
Explain the delivery day, arrival window and updates included in the shipping price. Show the charge before payment so customers can decide with the full cost visible. Avoid promising an exact arrival time without agreement. A clear description helps customers understand what they are paying for.
- Show the shipping cost on the product page, not just at checkout.
- Explain what it includes: time window, updates and a delivery photo.
- Offer fixed delivery days per area to group orders.
- Give a clear order cut-off date during busy seasons.
Frequently asked questions
Book a dedicated block one day ahead, or request the afternoon route before noon, subject to space. Blocks run Monday to Saturday in morning and afternoon slots. For same-day requests, check availability on WhatsApp. Confirm your areas, order count and date when booking. The answers below cover other details to check before dispatch.
How far in advance should I book a delivery?
Book a dedicated block one day ahead. For same-day requests, check availability on WhatsApp. Blocks run Monday to Saturday, from 8:30 am to noon or 1:00 to 4:30 pm. For the afternoon route, request delivery before noon, subject to space.
How much do stores usually charge for shipping in Mexico City?
Shipping fees in Mexico City depend on the type of delivery and the distance. Instead of copying what another store charges, work out your real cost per delivery and decide from there.
Does SIVA charge per kilometer?
No. The dedicated block is charged per 3.5-hour block and route delivery per delivery, within our four areas. That way you can work out your cost per delivery before leaving.
Can you help me work out my cost per delivery?
Yes. Send your weekly order count and delivery areas. We can compare the cost per delivery for a block and route delivery.
We'll tell you what each delivery costs
Tell us how many orders you have per week and which areas. We reply with the cost per delivery.