Start from your real cost
For each courier, list the cost per weight slab and zone from your contract, plus fuel surcharge, COD fee, RTO charge and ODA charge. That is your floor, not your price.
Add margin by zone, not flat
Metro-to-metro lanes are where merchants compare prices most, so keep margins tight there. Regional, rest-of-India and special-zone parcels can carry more, because the value of reliable delivery is higher and comparison is harder.
Charge separately for COD and RTO
A COD fee (a percentage with a minimum) and a clear RTO charge protect you from the two biggest margin leaks. Merchants accept them when they're visible from the start.
Tier your merchants
- Standard rates for new and small merchants
- Better rates for merchants above a monthly volume
- Custom pricing only for your largest accounts, reviewed every quarter
Discount carefully
Use time-limited coupons or wallet-recharge bonuses instead of permanent rate cuts. They win merchants without lowering your base price forever.
Frequently asked questions
Can I give one merchant special rates?
Yes. Per-merchant pricing overrides your default margins for that merchant only.