What is the Optimised Delivery Ratecard?
The Optimised Ratecard allows you to offer competitive rates for your customers by subsidising the difference between the actual delivery fees and the rate card charged by delivery partners. This has been optimised to improve customer conversion rates while still remaining transparent about all of the associated costs.
How this works:
- This setup has similarities to marketplace solutions: The delivery fee is is split into a delivery charge and a "service fee" which together combine to make up the total cost to your customer
The green highlighted part of the chart below shows the distance that greater than 90% of deliveries occur within, which we refer to as the "sweet spot".
Using this example, a customer would pay £2.99 for 1-mile delivery with a £1.00 service fee resulting in a total payment to you of £3.99. The total cost of the delivery comes to £6.15, meaning you cover the reduced difference of £2.16.
Optimised Rates have been calculated by Slerp to maximise your conversion rates. It is possible, however, for you to come up with your own customised rates, as long as you cover the difference between the actual delivery fees and the rates.
You can read further about what a rate card is and how it works here.