What are Delivery Fees?

Delivery fees are added to the cost of an item to compensate for the cost of transportation and delivery. These may represent shipping and handling charges necessary to package and ship goods, or other fees related to the handling of goods. Such charges can be stated as a separate line item on an invoice capture may be remitted to the supplier or to the freight carrier.

What are Delivery Fees for?

Shipping costs differ among carriers and vendors, but fees are usually calculated based on the following factors-

• Costs in real time according to the price of fuel, distances covered, weight, and volume of the packages
• Cost of packaging the product
• Insurance on shipped goods
• Customs duties and taxes
• Time of delivery
• Type of transportation

In third-party delivery apps such as Uber Eats and Postmates, the delivery company keeps the fee to cover their costs, while drivers keep customer tips.

Common Types of Delivery Fees