Courier rate cards can look complicated, with zones, weight slabs, surcharges and cash-on-delivery fees. Once you understand the building blocks, you can estimate costs accurately and price your products properly. This guide explains how courier shipping costs are calculated, with our free Shipping Cost Calculator.
1. Chargeable weight
Couriers charge the higher of actual weight and volumetric weight (L × W × H ÷ divisor). Read what is dimensional weight.
2. Weight slabs
Rates are usually given in slabs:
| Slab | Example rate |
|---|---|
| Up to 0.5 kg | Rs 200 |
| 0.5 to 1 kg | Rs 250 |
| Each additional kg | Rs 150 |
Rates are illustrative; check your courier’s rate card.
3. Zones
Delivery within the same city is cheapest, followed by nearby cities and then distant or remote areas. International shipments use country zones.
4. Surcharges
- Fuel surcharge: a percentage added to the base rate, updated periodically.
- Remote area surcharge: for hard-to-reach locations.
- Oversize or heavy-piece fees: for large or heavy parcels.
5. Cash on delivery (COD) fees
For COD orders, couriers often charge a percentage of the collected amount or a flat fee.
6. Taxes
Sales tax on services may apply to courier charges, depending on the province and service.
Worked example
A 2.3 kg parcel (chargeable weight), intercity:
| Item | Amount |
|---|---|
| First kg | Rs 250 |
| 2 additional kg (rounded up from 1.3) | Rs 300 |
| Fuel surcharge 15% | Rs 82.50 |
| COD fee 2% on Rs 5,000 | Rs 100 |
| Total | Rs 732.50 |
Use the Percentage Calculator to check surcharge and COD calculations.
Returns
Failed or returned deliveries often incur return charges. Factor return rates into pricing.
For saving money, read reducing e-commerce shipping costs. Check weight with the Volumetric Weight Calculator.
Insurance and declared value
Many couriers limit their liability for loss or damage unless you buy extra cover or declare a value. For expensive items, check the cover and its cost, usually a percentage of the declared value.
Frequently asked questions
What is chargeable weight?
The higher of actual and volumetric weight.
What is a fuel surcharge?
A percentage added to the base rate to cover fuel price changes.
Do couriers charge for COD?
Usually yes, as a percentage or a flat fee.