Understanding Delivery Pricing with Slerp
Slerp integrates with various last-mile couriers, ensuring relevant orders are automatically assigned to a courier, booked and monitored. The courier partners charge a fee for undertaking a delivery. These fees are often referred to as ‘Delivery Pricing’ or ‘Delivery Rate Cards’. These charges depend on two main factors:
1. Vehicle Type: The type of vehicle used for delivery, such as a bicycle, moped or car.
2. Distance: The distance between the pickup and drop-off locations.
For instance, a bicycle covering 1 km will cost less than if it were covering 2 km.
What are the delivery fees and who pays for them?
You have two options when it comes to delivery fees:
1. Standard Delivery Pricing
If you choose this option, the full delivery fee will be charged to your customer. Slerp partners with a wide range of businesses, therefore you benefit from our buying power, allowing us to offer competitive delivery rates based on vehicle type.
*Please note that the quoted price excludes VAT, which will be added to the total. If you are VAT registered, the VAT component is reclaimable from HMRC.
2. Optimised Delivery Pricing to end-customer
This is a subsidised (or discounted), rate of the Standard Delivery Pricing. It effectively provides a more competitive price to the end-customer to encourage conversion. We strongly recommend this option for our partners. This is what the vast majority of Partners use.
Optimised Delivery Pricing = Standard Delivery Pricing - Subsidisation
You will be absorbing a portion of the Standard delivery cost (usually less than 24% of the total fee, a strategy we call 'delivery subsidisation'), and in-turn offering an attractive delivery rate to customers, similar to what they would pay via an online marketplace. This not only reduces cart abandonment rates but also boosts your sales.
Reduce delivery costs to the customer = more transactions, more revenue,
How can I download a report of all delivery charges?
The Delivery Subsidisation is automatically calculated during the transaction process, so you don't have to do anything manually. You can track your delivery charges, including the VAT info, in your Slerp Order Reports by using the Generate Report feature. For more details, please check the info here.
Once you download the report, check the 'Delivery Subsidisation' column in your export to see the difference between the Standard Delivery Pricing and the Optimised Delivery Pricing.
How can I update the delivery pricing in my Slerp account?
You can access your delivery pricing settings in your control settings. Here's how:
- Go to Locations and select your specific location
- Select Settings, then either Same day or Pre-orders
- Click on Delivery and scroll down to delivery pricing.
We highly recommend using the Optimised Delivery Pricing to increase your sales and reduce cart abandonment. It is set for maximum benefit to you.
How does the delivery pricing work if I use my own drivers?
If you select ‘My Own Drivers’ it means you are not using the integrated last-mile Slerp Couriers Partner. There will be no automated booking with any external party and you are responsible for organizing deliveries.
If you are using ‘My own drivers’, you have the additional option of setting a flat fee delivery rate. Simply choose ‘Custom Fee’ and enter the flat delivery cost. We recommend this is kept to under £4 for same-day orders to remain competitive with marketplaces.
For more information on delivery pricing please contact support or speak to your account manager.