What are Delivery Fees?

Delivery charges are fees added to an order to cover transportation and fulfillment costs. These may include shipping and handling charges required to package and transport products, as well as other related service fees. Such charges can be stated as a separate line item on an invoice and 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-

• Real-time fuel prices, delivery distance, package weight, and volume
• Cost of packaging the product
• Insurance on shipped goods
• Customs duties and taxes
• Delivery time
• Type of transportation

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

What is the most efficient delivery method for a restaurant?

The optimal delivery system for a restaurant depends on its size, order volume, and brand reputation. Established restaurants may prefer the control of their own first-party delivery system. Small or new restaurants might find use in the discoverable experience on third-party apps.