💹 Optimised Delivery Ratecard

What is the Optimised Delivery Ratecard?

The Optimised Ratecard is a pricing model designed by Slerp to:

• Keep delivery prices attractive for customers.
• Maintain transparency about fees.
• Increase conversion and average order value.

It works by splitting the delivery cost into:

• A delivery charge, and 
• A service fee,

which together equal the total amount the customer pays.

How it works – simple example

Imagine:

• Actual courier cost for a 1‑mile delivery: £6.15.
• Optimised customer pricing:
  • Delivery charge: £2.99
  • Service fee: £1.00
  • Total customer pays: £3.99

In this example:

• The customer sees a fair, simple price.
• You subsidise the difference between £6.15 and £3.99 (i.e. £2.16) as a cost of acquiring and retaining that customer.

The Optimised Ratecard has been calculated by Slerp based on real order data so that:

• Over 90% of your deliveries fall into a “sweet spot” distance band where pricing is most competitive.
• You balance conversion rates with delivery costs.

Why use the Optimised Ratecard?

• Higher checkout conversion: Lower, smarter delivery fees are less of a barrier.
• Simpler messaging: Customers see clear delivery and service fees.
• More predictable costs: You decide how much you’re comfortable subsidising.

Getting started

To enable or review the Optimised Delivery Ratecard:

1. Speak to your Account Manager or Slerp Support.
2. Review:
   • Your current average order value.
   • Typical delivery distances.
   • Any specific margins or targets you need to hit.
3. Agree whether to:
   • Switch fully to the Optimised Ratecard, or
   • Combine it with other tools such as tiered delivery discounts or free delivery over X.