Selling7 min readUpdated 6 November 2026By the StockỌja team

How to charge for delivery

Short answer

Find out what a delivery to each area really costs you, then charge at least that. Most small businesses in a big city do best with a fee for each area they serve, paid with the order before the rider leaves. Offer free delivery only when your prices or a minimum order cover it.

Why delivery fees go wrong

Delivery is where many small businesses quietly lose money. The fee is guessed, the rider charges more for a far area, a customer isn’t home and the rider has to go back, or the customer pays on delivery and the money takes days to reach you.

A simple delivery policy fixes most of this. Customers like it too: a clear fee shown before they pay builds more trust than "we’ll tell you the delivery fee later".

Step 1: work out what a delivery costs you

Add up everything a delivery costs you, not just the rider’s fee:

The trip. What a dispatch rider or logistics company charges for that distance, or your own fuel and time if you deliver yourself.
Packaging. Bags, boxes, tape or padding for the delivery.
Failed trips. If about one delivery in twenty has to go out twice, spread that extra cost across the others.
Your time. Packing, calling the rider and confirming with the customer takes time from selling.

Step 2: choose how you charge

Option	Works well when	Watch out for
Pickup only	Most customers live close or pass by your shop	Losing customers who can’t come to you
Flat fee	You deliver in a small area where trips cost about the same	Losing money on the longest trips
Fee by area	You serve a big city with near and far areas	Keeping the list short and up to date
Free above an order value	Your profit on large orders covers the trip	Setting the minimum too low
Free on everything	Delivery cost is already inside your prices	Prices that look high next to sellers who charge for delivery

Step 3: set your fees by area

List the areas your customers actually order from, using the names they use: Lekki, Ajah, Ikeja, Yaba, Surulere. Ask two or three riders or logistics companies what they charge from your shop to each area, take the usual price and round it up to a clean number.

Group nearby areas with the same fee and keep the list short. Ten areas customers recognise work better than fifty street names. If an area is too far to be worth it, leave it out and offer pickup instead.

Area (a shop in Yaba)	Your rider’s quote	Your delivery fee
Yaba, Surulere, Ebute Metta	₦1,500	₦2,000
Ikeja, Maryland, Gbagada	₦2,200	₦2,500
Victoria Island, Ikoyi	₦2,500	₦3,000
Lekki Phase 1	₦3,000	₦3,500
Ajah, Sangotedo	₦4,500	₦5,000

The few hundred naira above the rider’s price covers packaging and the occasional second trip. Check your riders’ prices every few months; fuel costs change them.

Step 4: get paid before the rider leaves

Payment on delivery feels friendly, but it is risky for a small business. The customer can refuse the item at the door, the rider carries cash, and you wait for your money. Fake orders cost you a trip and a day of the item being unavailable.

Ask for payment, including the delivery fee, when the order is placed. A proper checkout with card and transfer makes this easy for the customer, and you only send out orders that are already paid.

Step 5: tell customers what to expect

Delivery times. For example, "same day if you order before 12 noon, otherwise next working day".
What happens if they miss the rider. How long the rider waits and whether a second trip is charged.
Updates. Let customers know when the order is confirmed and when it is on its way. Fewer "where is my order?" messages for you.
Returns. What happens if the item is wrong or damaged, and who pays the return trip.

When free delivery makes sense

Free delivery sells, but someone still pays the rider. Two ways to make it work: build the average delivery cost into your product prices (our guide on how to price products for sale shows how to include costs), or offer free delivery only on orders above a set value, where your profit on the order easily covers the trip.

Try it for a month and compare: did orders grow enough to pay for the deliveries you now cover?

How StockỌja handles delivery

In your StockỌja online store you choose how customers get their orders: they pick up from your branch, you arrange delivery with them yourself, or you deliver and set your own charges. For delivery, add each area you serve and its fee. At checkout the customer chooses their area and pays the fee with their order, online by card or transfer, so every delivery order is paid before it leaves.

You choose which branch delivery stock is taken from, and you can add a note at checkout such as your delivery times. New orders arrive in one list, and you move each one from confirmed to out for delivery to delivered while you or your rider take it to the customer. You can change your delivery settings at any time, and start free with one store.

Questions

How much should I charge for delivery?

At least what the delivery costs you: the rider or dispatch fee for that distance, plus packaging and a little for failed deliveries. Ask two or three dispatch riders or logistics companies what they charge to each area you serve, then round up to a clean number for each area.

Should I charge a flat delivery fee or a fee by area?

A flat fee is simple but only fair if your customers are close together. In a big city, a fee by area works better: nearby areas pay less, far areas pay more, and you don’t lose money on long trips.

Is free delivery a good idea for a small business?

Only when you have priced it in. Free delivery still costs you the rider’s fee, so either add it to your product prices or offer it only above an order value where your profit covers it.

Should customers pay before delivery or on delivery?

Payment before dispatch protects you from fake orders, customers who change their minds and riders carrying cash. Many customers are happy to pay first when they trust the seller and checkout is simple.

What if a customer is not available when the rider arrives?

Agree the rule in advance and show it where customers order: for example, the rider waits a set time, and a second trip is charged again. Clear rules stop arguments and keep riders willing to work with you.