Delivery charge strategy for ecommerce in Bangladesh

Delivery charge is where a lot of orders are won or lost. Set it too high and customers leave at checkout. Set it too low and you pay for every parcel out of your margin.

This guide is a way to set your delivery charge for ecommerce in Bangladesh: one price for inside Dhaka, one for outside, and a clear idea of when free shipping makes sense.

We will not publish a courier rate card. Pathao and Steadfast set their own prices, and they change. Open your own merchant panel and use your numbers.

Start with what the courier charges you

Before you decide what to charge the customer, know what you pay.

Open your Pathao or Steadfast merchant panel and write down, for a typical parcel of your product:

• Delivery cost inside Dhaka
• Delivery cost outside Dhaka
• COD handling charge, if any, and how it is calculated
• What happens on a failed delivery or return
• Weight or size limits that change the price

Do this for your usual parcel, not the smallest one. If your product is a heavy shoe box, use that.

Do not copy a table from a blog. Rates move. Even courier pages have disagreed with each other before, as we noted in booking Pathao and Steadfast from orders.

Why inside and outside Dhaka are different

Parcels inside Dhaka usually travel a shorter distance and arrive sooner. Outside Dhaka they go through more hubs and take longer. Courier pricing usually reflects that. That is why most Bangladesh stores keep two charges.

StoreOS uses the same split. Delivery area at checkout is either Dhaka or outside the capital, and the charge comes from your store settings. The customer sees the delivery charge in the total before they place the order.

Keep it simple. Two prices are easy to explain. Ten zones confuse buyers and you.

How to set your delivery charge for ecommerce in Bangladesh: four ways

1. Pass the full cost on to the customer

You charge what the courier charges. Your product price stays clean.

Good for: low-margin items, heavy items, and sellers who want predictable profit.

Risk: a high delivery charge on a cheap product makes the total look expensive.

2. Charge a flat fee that is close to your average cost

You set one fee for Dhaka and one for outside. You accept small differences.

Good for: simple stores, where parcels are similar in size.

Risk: you lose a little on heavy parcels. Check your numbers monthly.

3. Build part of the delivery cost into the product price

The product is a bit higher. The delivery charge is lower.

Good for: products where the shopper compares a total, not the parts.

Risk: if a competitor shows a low product price plus a delivery charge, yours may look more expensive in search or on social.

4. Offer free shipping on a threshold

"Free delivery over Tk X." The customer adds items to reach it. See below.

Free shipping thresholds: when they work

Free shipping is a pricing decision, not a gift. It works when your margin on the basket can absorb the delivery cost.

A simple way to check:

1. Work out your average margin per order.
2. Work out your delivery cost for a typical parcel.
3. Pick a threshold where margin after delivery is still above zero, even for the weakest product.

Do not take the threshold from another shop. Their margin is not yours.

Some tips:

• Set the threshold a little above your current average order, so it nudges people to add one more item.
• Promote the threshold near the cart: "Add Tk X more for free delivery."
• Review it every few months.
• Consider free delivery only inside Dhaka at first, and keep a charge outside.

A caution about StoreOS: delivery charges are stored per area in the store settings. We are not claiming an automatic "free over Tk X" rule here. Check what your console supports. If it is not built in, you can run a threshold as a promotion by hand, or by pricing the product to absorb the cost. Tell customers the rule clearly.

Show the delivery charge early

A surprise charge at the door leads to a refused parcel. A surprise charge at checkout leads to an abandoned cart. Both cost you.

Put the delivery charge:

• On the product page, or one tap away, such as "Delivery: Tk X inside Dhaka, Tk Y outside".
• In the cart.
• In the order summary before the buyer presses the button.
• In your confirmation message.

On StoreOS, the total at checkout includes the delivery charge for the area the customer picks. This helps with refusals, a theme we covered in how to reduce fake orders and returns in COD.

COD adds a cost to think about

With cash on delivery, the courier collects money and usually charges a handling percentage. You do not see that cost in the delivery fee alone. Look at your merchant panel to see how COD is charged inside Dhaka and outside.

When you set a price, include:

• The delivery fee
• The COD handling charge
• The loss from some parcels coming back

The last item surprises sellers most. A return costs you the trip out and sometimes the trip back. Plan for a share of them. See when a COD parcel comes back.

Coupons and delivery

Coupons are discount codes. They can bring buyers back, but they can eat the margin that pays for delivery.

If you run a coupon, work out the total margin after the coupon and the delivery charge. Do not stack a coupon on top of a free delivery threshold unless you have checked the maths.

Speed matters as much as price

A cheap delivery charge with a slow promise loses to a slightly higher charge with a clear date. Tell buyers the expected delivery window, such as "1 to 3 days inside Dhaka" if that is what your courier delivers in practice. Do not promise a speed you cannot keep. Use what you see in your courier panel and your past parcels.

A worked example, with made-up numbers

These numbers are only for showing the method. Use your own.

Say you sell a bag. You pay Tk 500 for it. You sell it at Tk 900. Packaging is Tk 30. Your courier charges Tk 80 inside Dhaka.

• If you charge the customer Tk 80, the total is Tk 980. You earn Tk 370 per bag before COD handling and returns.
• If you offer free delivery, you earn Tk 290 per bag.
• If one bag in ten returns and you lose the delivery cost, the real figure drops again.

The point is to do this arithmetic once for every product group. Then you know whether you can afford free delivery.

Checklist: set your delivery charge in 30 minutes

1. Open your courier panel and note inside Dhaka and outside Dhaka costs for your usual parcel.
2. Add COD handling.
3. Decide: pass through, flat, built into price, or threshold.
4. Set the two charges in your store settings.
5. Place a test order for each area and check the total.
6. Show the charge on the product page and in the cart.
7. Review monthly against real courier bills.

FAQ

How much should I charge for delivery in Bangladesh?

It depends on your courier rate, parcel size, and margin. Check your courier merchant panel, add COD handling, and set one price for inside Dhaka and one for outside.

Should I offer free delivery?

Only if your margin can pay for it. Many sellers use a threshold, such as free delivery over a certain basket value, so the extra item covers the cost.

Why is outside Dhaka more expensive?

Parcels usually travel farther and through more hubs. Couriers price this in. Check your courier's current charges.

Should I include the delivery charge in the product price?

You can. Compare the total price a customer sees with similar shops. Sometimes showing a separate low delivery charge is clearer.

What to do this week

1. Get your actual courier costs for both areas.
2. Set the two delivery charges in your console.
3. Run one test order for Dhaka and one for outside.
4. Decide whether a free-shipping threshold fits your margin.

Create a free store, set your delivery areas, and upgrade when you are ready to take COD orders. See pricing.