Understanding Your Fees
storekit provides two fee types you can configure:| Fee Type | Scope | Where to Set |
|---|---|---|
| Service Charge | Fixed amount on all orders | Store Settings |
| Delivery Fee | Per delivery zone, variable by distance | Fulfillment > Delivery Zones |
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
| Zone | Distance | Actual Cost | Service Charge | Delivery Fee | Customer Total |
|---|---|---|---|---|---|
| Zone 1 | 0-2 miles | £3.50 | £0.99 | £1.99 | £2.98 |
| Zone 2 | 2-4 miles | £5.00 | £0.99 | £3.49 | £4.48 |
| Zone 3 | 4-6 miles | £7.00 | £0.99 | £4.99 | £5.98 |
- 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
| Method | Fees |
|---|---|
| Pickup | £0 |
| Delivery | £3.99 + £0.99 service charge |
- 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
| Provider | Typical Cost | Notes |
|---|---|---|
| Uber Direct | £4-7 per delivery | Varies by distance |
| Stuart | £4-6 per delivery | Zone-based |
| Own drivers | £2-5 per delivery | Fuel + wage |
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
| Mistake | Why It Hurts | Better Approach |
|---|---|---|
| Very high delivery fee | Cart abandonment | Split into service charge + lower delivery fee |
| £0 service charge | Leaves money on the table | Even £0.49 adds up |
| Same fee for all zones | Losing money on far deliveries | Tiered delivery zones |
| Rounding to whole pounds | Feels more expensive | Use £X.99 pricing |
Recommended Starting Point
For most stores, we recommend starting with:| Setting | Value |
|---|---|
| Service charge | £0.99 |
| Service charge label | ”Order fee” |
| Zone 1 delivery (0-2 mi) | £1.99-2.49 |
| Zone 2 delivery (2-4 mi) | £2.99-3.49 |
| Minimum order | £10-15 |
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