E-commerce11 min read

Calculating delivery fees by zone: a simple rate card for online stores

Mohamed Bah·Fondateur, Kolonell
August 14, 2026
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Calculating delivery fees by zone: a simple rate card for online stores

Calculating delivery fees by zone: a simple rate card for online stores

E-commerce

The verdict in three sentences

A good delivery rate card covers your real cost without scaring buyers at checkout: the key is three simple zones and a readable price. In 2026, the grid that works: FCFA 1,500 in-city, 3,000 peri-urban, 5,000 regional. Add a free-shipping threshold at FCFA 25,000 and you lift average order value by 16%.

Building the zone grid

Two models exist: by distance or by weight. For a general store, distance-zone is the most readable and the easiest to automate at checkout via the GPS pin.

Zone (2026 order of magnitude)RadiusFee FCFAGHS/KES equivalent
In-city0 to 8 km1,500~18 GHS / ~200 KES
Peri-urban8 to 25 km3,000~36 GHS / ~400 KES
Regional25 to 100 km5,000~60 GHS / ~670 KES
Out of region> 100 kmOn quoteOn quote

The rule: the fee must cover the rider's cost (fuel + time) plus a safety margin for failures. In-city, FCFA 1,500 covers an 8 km-radius run with a controlled failure rate.

The free-shipping threshold as a basket lever

Free shipping is never free: it is funded by a bigger basket. Setting the threshold just above your average order value pushes buyers to add an item.

Metric (2026 order of magnitude)No thresholdFree at FCFA 25,000
Average order value (AOV)FCFA 18,000FCFA 20,900
AOV increase+16%
Share of orders at threshold8%
Delivery fees collectedFCFA 1,500/orderFCFA 1,500 except 8%
Margin on added itemCovers the free shipping

Only 8% of orders reach the threshold and get free shipping: their added margin comfortably funds the free delivery.

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Mini case study

Awa runs a home-decor store in Dakar, average basket FCFA 18,000, 400 orders/month. She uses a flat FCFA 1,500 fee with no threshold. She introduces the zone grid and a free-shipping threshold at FCFA 25,000. Result: her AOV rises to FCFA 20,900 (+16%), or FCFA 1.16 million extra revenue/month. On the 8% of orders (32) that trigger free shipping, she gives away 32 x 1,500 = FCFA 48,000 of delivery, easily covered by the margin of the added items. Clearly a winning move.

FAQ

Distance or weight: which model? Distance-zone is clearer for the buyer and simpler to automate. Weight makes sense mainly for bulky or heavy goods (appliances).

Where to set the free-shipping threshold? About 30 to 40% above your average basket. Too low and you give shipping to everyone; too high and no one reaches it.

Should fees show early in the funnel? Yes. Surprise fees at the last step are the top cause of cart abandonment. Show them from the product or cart page.

How to handle unpredictable peri-urban zones? The GPS pin lets you compute the zone automatically. When in doubt, add an "on quote" zone beyond 100 km.

Does the free threshold cut margin? No, if well calibrated: only ~8% of orders benefit, and the item added to reach it carries its own margin.

Let's talk about your project. We automate your zone rate card via GPS pin and free-shipping threshold. WhatsApp +221 77 596 93 33.

Tags:#delivery fees#zone#rate card#store#AOV#logistics#e-commerce#conversion
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Mohamed Bah

Fondateur, Kolonell

Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.