Configuring Delivery Fees and Pricing Rules
How to set up delivery fees in AskBiz POS — flat rates, distance-based pricing, order-value thresholds for free delivery, and peak-time surcharges.
Key Takeaways
- Delivery fees can be flat rate, distance-based, or conditional on order value — configure in Logistics > Settings > Fee Rules.
- Free delivery thresholds (e.g. free over £30) increase average basket size and are easy to set up.
- Peak-time surcharges let you charge more during high-demand periods to manage fleet capacity.
The three fee models
AskBiz supports three delivery fee models. Flat Rate: every delivery costs the same regardless of distance or order size — simple to communicate and easy for customers to understand. Distance-Based: the fee increases with distance from your depot — fair for drivers covering longer routes, but more complex to explain. Value-Based: the fee varies by order value — typically free above a threshold (£30, £50) and charged below it. You can combine models: flat rate by zone (Zone 1 = £3.99, Zone 2 = £5.99) with a free delivery threshold (any order over £50 gets free delivery regardless of zone).
Setting up fee rules
Go to POS > Logistics > Settings > Fee Rules. Click Add Rule. Define the conditions: Zone (All zones or a specific zone), Order Value (All orders, Under £30, etc.), and Time (All hours or specific hours for peak surcharges). Set the Fee — a fixed amount or Free. Rules are evaluated in order: the first matching rule applies. Put your most specific rules first (e.g. 'Zone 1, Over £50 = Free') and your catch-all rule last ('All zones, all values = £3.99'). Test by creating a dummy delivery order to confirm the fee auto-populates correctly.
Free — no card needed
See this in action for your business
AskBiz tracks these metrics automatically — just connect your data and start asking questions.
Start for free →Free delivery thresholds
A free delivery threshold is a powerful tool for increasing basket size. If customers know delivery is free over £30, many will add items to reach the threshold — boosting your average order value. Set up a rule: Condition: Order Value ≥ £30. Fee: Free. Place this rule above your standard paid delivery rule. When a delivery order is created with a basket value of £30 or more, the fee automatically sets to zero. Consider displaying the threshold prominently — 'Add £X more for free delivery' on the order confirmation screen is a simple upsell prompt.
Peak-time surcharges
If your delivery demand spikes at certain times (lunch rush for a restaurant, Friday evenings for retail), you can add a surcharge for those periods. Create a fee rule: Time: 12:00–14:00, Fee: Standard rate + £1.50 (or a higher flat rate). This does two things: it covers the higher cost of servicing peak demand (more driver hours, less efficient routes) and it nudges price-sensitive customers to order outside peak times, smoothing demand. Be transparent about peak surcharges — customers who see an unexpected charge feel deceived; customers who know in advance usually accept it.
VAT on delivery charges
In the UK, delivery charges are subject to VAT at the same rate as the goods being delivered, unless the delivery is genuinely a separate service. For a standard retail business delivering VATable goods, the delivery fee is standard-rated at 20%. For a food delivery business delivering zero-rated food, the delivery charge is also zero-rated. Set the VAT rate on each fee rule to match your situation. Your accountant can confirm the correct treatment for your specific business model.