07 — Unit Economics
₹40-120
Shipping Cost Range
Per order across India
30-40%
Savings Possible
With optimization
₹499+
Free Shipping Threshold
Aligns with sweet spot AOV
₹3,000/mo
Value of ₹10 Save
At 30 orders/day
| Zone | Cities | Cost per 500g | Cod Rate | RTO Rate |
|---|---|---|---|---|
| Local (Same City) | Delhi, Mumbai, Bangalore | ₹35-50 | Low | 5-8% |
| Zone B (Nearby) | Within 500km | ₹45-65 | Medium | 10-15% |
| Zone C (Remote) | Tier-2/3 cities, Northeast | ₹70-120 | High | 20-35% |
| J&K, Ladakh | Special regions | ₹100-180 | Very High | 30-50% |
Use Shiprocket/Delhivery aggregators for best rates. Always get quotes for your top 5 pin codes before finalizing pricing.
Negotiate rates with 2-3 courier partners
Use Shiprocket/Delhivery for aggregated rates
Optimize package weight (every 500g matters)
Zone-based shipping (local = cheaper)
Single vs multi-piece shipments
NDR (Non-Delivery Report) follow-up to reduce RTO
Build ₹55-65 into product price (Tier-2/3 average)
Free shipping above ₹499 (increases AOV)
Flat ₹49 shipping (customer prefers predictable)
Charge shipping on COD only (push prepaid)
Bundle products to amortize shipping
Subscription = free shipping incentive