Ecommerce Delivery Cost Guide for Online Sellers

Delivery cost can quietly reduce ecommerce profit. Sellers often focus on product price and ad spend, but courier charge, COD cost and returns can change the real margin.

Delivery costs to check

• Inside city delivery
• Outside city delivery
• COD charge
• Return cost
• Packaging cost
• Exchange or re-delivery cost

Why COD matters

Cash on delivery can increase order volume, but it can also increase cancellation and return risk. Track confirmed orders, delivered orders and returned orders separately.

Simple margin check

Profit = Selling price – product cost – delivery subsidy – packaging – ad cost – return allowance.

Use the estimator

Use the BD Courier Cost Estimator to estimate delivery pressure. You can also explore Free Ecommerce Tools.

Tip

Offer free delivery only when your margin can absorb it, or set a minimum order value.