Shipping margin
Your courier contract gives you a cost per weight slab and zone. You sell to merchants above that. Margins are usually thin on busy metro lanes where sellers compare prices, and healthier on remote pincodes and heavier parcels.
COD and other charges
- A COD handling charge, usually a percentage of the collected amount or a minimum fee
- RTO charges when a parcel comes back
- Charges for ODA (out of delivery area) pincodes
- Value-added services such as packaging, pickup from multiple locations or priority support
What eats the margin
Good software helps with all four: volumetric weight at booking, clear RTO rules, a COD ledger, and per-merchant pricing you can review.
- Weight disputes, when the courier re-weighs heavier than declared
- RTO you can't recover from the merchant
- Slow COD remittance tying up your cash
- Discounts given to win merchants that never get reversed
Frequently asked questions
Does the software provider take a cut?
Not here. You pay a flat monthly plan, and every rupee of margin is yours.