How to set shipping charges and a free-shipping threshold, with worked rupee examples

Delivery charges are where many small sellers lose money without noticing. Charge too much and buyers abandon the cart at the last step. Charge too little — or ship everything free — and the courier quietly takes the profit from every order.

There is no single right answer, but there is a right way to decide: know your real cost per parcel, know your typical order value, and pick the model whose numbers work. This post does the sums in rupees.

First, find your real cost per parcel

Look at your last twenty courier bills and work out the average charge for a typical parcel, then add packaging. Weight matters, but so does size: couriers often bill the larger of actual weight and 'volumetric' weight from the box dimensions, so a light but bulky box can cost more than you expect.

For the examples below, assume a clothing seller whose average parcel costs ₹65 to ship plus ₹15 in packaging: ₹80 in total. Their typical order is around ₹850. Use your own numbers — courier rates vary a lot by weight, distance and volume.

Model A: a flat delivery charge on every order

Charge to the buyer

₹60 on every order

Your cost

₹80 per parcel

You absorb

₹20 per order

Small enough to build into product prices

Good for

Low-value items and sellers who want predictable numbers

Watch for

Buyers comparing your ₹60 to stores that show free delivery

Model B: free delivery above an amount

The rule

₹60 below ₹999; free at ₹999 and above

Order of ₹850

Buyer pays ₹60; you absorb ₹20

Order of ₹1,150

Buyer pays nothing; you absorb ₹80

Why it works

A buyer at ₹850 often adds a ₹249 item to save ₹60

Your order grows by ₹249 to cover ₹80 of shipping

Good for

Stores with add-on items: accessories, smaller pieces, refills

Model C: free delivery on everything, built into prices

The rule

Every product price includes delivery

Price change

A ₹770 kurta becomes ₹849

You absorb

Nothing extra — the ₹80 is in the price

Good for

Single-item orders and higher-value products

Watch for

Buyers of several items pay delivery several times over, so offer a coupon on multi-item orders

All figures are illustrative. Plug in your own parcel cost and typical order value.

Picking a free-shipping threshold

A threshold works when it is a little above your typical order — high enough that some buyers add something to reach it, low enough that it feels within reach. If most carts are around ₹850, a threshold of ₹999 is a gentle nudge. A threshold of ₹2,500 is a wall nobody climbs, and only buyers who were spending that much anyway get free delivery.

Check it after a month. If almost every order lands just above the threshold, it is working. If almost none do, lower it or switch to a flat fee.

One more detail: on Slaby the threshold is checked against the order value after discounts, so a coupon that drops a ₹1,050 cart to ₹950 also brings the delivery charge back. That is deliberate — it protects your margin — but mention it in the coupon's terms so buyers are not surprised.

Adding an express option

Some buyers will pay to get a gift in time for a birthday. An express option lets them, without you giving up your free standard delivery. Free delivery applies to standard only; express is always a paid upgrade.

You have two ways to price it. Express can be one fixed charge, say ₹149. Or express can be your standard charge plus a premium: with a ₹79 standard charge and a ₹99 premium, a buyer below your free-delivery amount pays ₹178 for express, and a buyer above it pays just ₹99 — the premium for speed, nothing more. Many sellers find the second version easier to explain.

Show the delivery time next to each option, as a date or as a range like '5–8 days' and '2–3 days'. Buyers choose express when they can see what it buys them.

Where you deliver, and COD

• If you cannot reach every pincode — common for food, plants or fragile items — list the pincodes you deliver to. Checkout refuses addresses outside them before anyone pays.
• COD usually costs you more per parcel than prepaid, because couriers charge for collecting cash. You can add a separate COD fee that appears as its own line at checkout, instead of raising delivery for everyone.
• Record your typical courier cost in your settings, and your profit report will subtract it from each order until real courier bills are recorded.

Setting it up on Slaby

1. 1

   Set the standard charge

   Enter your flat delivery charge, or 0 to make standard delivery free on every order.

2. 2

   Add a free-delivery amount

   Enter the order value at which standard delivery becomes free. Leave it empty to always charge.

3. 3

   Turn on express if you offer it

   Switch on express delivery, set its charge, and choose whether express costs the standard charge plus the express charge, or the express charge alone.

4. 4

   Name the options and their timing

   Rename them to match your courier, such as 'Standard (Surface)' and 'Express (Air)', add the delivery time for each, and pick whether checkout shows a date or a range of days.

5. 5

   Limit the delivery area if you need to

   Add the pincode prefixes you deliver to. Leave it empty to deliver everywhere.

   Delivery and returns docs

Common questions

Is free shipping always better for sales?

Not always. 'Free' attracts attention, but if it forces you to raise prices a lot, single-item buyers may leave. Test one model for a month, then compare order count and order value.

What if a heavy item costs much more to ship?

Build its extra courier cost into that product's price, so your delivery charge can stay simple for everything else.

Does the free-delivery amount apply to express too?

No. Free delivery is for standard only. With 'express = standard + express charge' on, a buyer above the free-delivery amount pays only the express charge for express.

Should I charge more for far-away pincodes?

A single charge is simpler for buyers. If distant parcels cost you much more, keep one charge and set your free-delivery amount with the average cost in mind, or limit delivery to the areas you can serve well.

Read next