Buyers love free delivery. But if you offer it on every order, a ₹299 product going across India can cost you more to ship than you earn. Here is a simple way to decide how to set shipping charges for your online store in India.
Step 1: Know what the courier really charges
Couriers charge on the billable weight. That is the higher of two numbers:
- the actual weight on a scale, and
- the volumetric weight = length × width × height (in cm) ÷ 5000.
Example: a box of 30 × 20 × 10 cm has a volumetric weight of 1.2 kg — even if the pillow inside weighs 400 grams. You pay for 1.2 kg. A smaller box saves money on every order.
Step 2: Know your zones
Rates change by distance. Most couriers use zones like local (same city), within state, metro to metro, rest of India, and special areas such as the North-East and J&K. Look at where most of your orders go, and note the cost for your usual box in each zone.
Step 3: Pick a simple charge
- Flat charge — one amount for every order, say ₹60. Easy for buyers to understand. Works when most products are light and similar.
- Weight-based — charge by weight slab. Better when you sell both small and heavy items.
- Free above a limit — free delivery once the cart crosses an amount. This is the most popular in India.
Most small stores do well with a flat charge plus free delivery above a limit.
Step 4: Choose your free shipping threshold
A common rule: set it at about 1.3 to 1.5 times your average order value. If your average order is ₹700, try free delivery above ₹999. Buyers add one more item to reach it, and the bigger order pays for the delivery.
Check that the limit covers your real costs: product cost, packing, payment fees, delivery, and a little for returns. If the numbers do not work, raise the limit or keep a small charge.
Step 5: Treat COD differently
Cash-on-delivery orders come back more often and many couriers charge a COD fee. Many sellers keep a small extra charge on COD and give free delivery on prepaid orders. It also nudges buyers towards UPI.
Step 6: Show it early
Surprise charges at checkout are a top reason for abandoned carts. Put a line on every product page: "Free delivery above ₹999". Show a small bar in the cart: "Add ₹150 more for free delivery".
Quick checklist
- Measure your boxes and use the smallest one that fits.
- Note costs for your top three zones.
- Find your average order value.
- Set a flat charge and a free limit at 1.3–1.5× that value.
- Review after one month.
Our stores let you set a shipping charge with a free-delivery limit on every plan, and on Pro and Elite you can mark single products as free shipping. Orders go to courier through Shiprocket. See online store plans or read how to move COD buyers to UPI.
Sources: Indian courier rate guides and 2026 ecommerce shipping benchmarks. Courier rates change often; check your own rate card.
FAQs
How do couriers calculate shipping charges in India?
On billable weight — the higher of actual weight and volumetric weight (length × width × height in cm ÷ 5000) — and on the delivery zone of the pin code.
What free shipping limit should I set?
A common starting point is 1.3 to 1.5 times your average order value, as long as it still covers product, packing, fees and delivery costs.
Should I charge more for COD orders?
Many sellers keep a small extra charge on COD and offer free delivery on prepaid orders, because COD orders come back more often.
Is flat shipping or weight-based shipping better?
Flat shipping is simpler for stores with light, similar products. Weight-based shipping suits stores that sell both small and heavy items.
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