Understanding Your Fees
storekit provides two fee types you can configure:
Both appear as separate line items at checkout, so customers see exactly what they’re paying.
The Psychology of Delivery Fees
High delivery fees are a leading cause of cart abandonment. Research shows:- Customers often expect “free” or subsidised delivery from online ordering
- A single large fee feels more painful than multiple smaller charges
- Customers accept small service charges more readily than high delivery fees
Strategy 1: Service Charge Subsidy (Recommended)
Best for: Stores using third-party delivery (Uber Direct, Stuart, etc.) or own drivers Add a small fixed service charge to all orders, then reduce the delivery fee customers see.How It Works
- Calculate your average delivery cost (e.g., £4.50 per order)
- Add a service charge of £0.99 to all orders
- Set your delivery fee to £2.99 instead of £4.50
- Service charge: £0.99
- Delivery: £2.99
- Total fees: £3.98
Configuration
- Go to Settings > Store Settings
- Set Service Charge to your desired amount (e.g., 99)
- Optionally set a Service Charge Label (e.g., “Order fee” or “Packaging”)
- Go to Fulfillment > Delivery Zones
- Reduce each zone’s delivery fee by the service charge amount
Strategy 2: Tiered Delivery Fees
Best for: Stores with wide delivery radius where costs vary significantly Set different delivery fees per zone based on actual cost, while using a service charge to keep the closest zone very affordable.Example Configuration
This approach:
- Keeps local delivery very competitive
- Passes higher costs to customers ordering from further away
- Maintains consistent service charge revenue
Strategy 3: Free Delivery Threshold
Best for: Stores wanting to increase average order value Combine a minimum order value with reduced or free delivery.Example Setup
- Service charge: £1.49 (all orders)
- Delivery fee: £2.99 (orders under £25)
- Free delivery: Orders over £25
- Set your service charge in Store Settings
- Create a discount code with:
- Type: Free delivery
- Minimum order: £25
- Auto-apply: Enabled
Even with “free delivery”, you keep the service charge revenue to offset costs.
Strategy 4: Full Cost Recovery
Best for: Premium restaurants where customers expect to pay for quality service Pass the full delivery cost to customers, but frame it transparently.Configuration
- Service charge: £0 (or small amount for packaging)
- Delivery fee: Full cost per zone
- Your food commands premium pricing
- Customers value quality over price
- You want to maintain healthy margins
Strategy 5: Pickup Incentive
Best for: Stores with high foot traffic or wanting to reduce delivery volume Make pickup significantly cheaper than delivery to encourage collection.Example
This works well combined with:
- Pre-orders for pickup
- Loyalty rewards for pickup orders
- Prominent “Ready in X minutes” messaging
Calculating Your Break-Even
To find the right fee structure, calculate your actual costs:Third-Party Delivery Costs
Your Break-Even Formula
- Delivery cost: £5.00
- Service charge: £0.99
- Delivery fee: £2.99
- Break-even: £1.02 (your subsidy per order)
A/B Testing Your Fees
Before committing to a strategy, test different approaches:- Week 1-2: Current fees (baseline conversion rate)
- Week 3-4: Lower delivery fee + service charge
- Week 5-6: Different service charge amount
- Checkout conversion rate
- Average order value
- Total revenue
- Profit per order
Common Mistakes to Avoid
Recommended Starting Point
For most stores, we recommend starting with:
This balances conversion with cost recovery while keeping flexibility to adjust based on your results.
Compare Strategies
Use this calculator to compare different fee structures and see how they impact your costs and what customers pay.Next Steps
- Set up delivery zones with your chosen fees
- Create a free delivery promotion for high-value orders
- Configure minimum order values per zone