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Tiered Delivery Fees


Updated

Overview

We are now offering our customers the ability to set tiered Dispatch delivery fees. Brands are able to configure fee tiers based on order subtotal. This will let you control what the end customer pays based on how much they spend.

  • Specify Dispatch delivery fee tiers by entering tiers for order subtotal
  • For every tier, you can enter a minimum and maximum value
  • You can select which Dispatch fee strategy to apply to each tier (more information on fee strategies below)
  • Every vendor can set their own tiered strategy
  • Define any order of tiers with the first tier always starting at $0 and last tier ending in infinity

Please note, this feature needs to be configured by Olo. If you have questions about this process please submit a ticket on our Help Center.

Fee Strategies

  • Fixed Markup: Add an incremental amount (e.g. $0.50) to the Dispatch quoted fee charged to the end customer
    • Example: Dispatch quoted delivery fee of $5.50 will show up to the customer as a delivery fee of $6.00, if the fixed markup is $0.50

  • Fixed Subsidy: Subtract (e.g. $2.00) from the Dispatch quoted fee charged to the end customer
    • Example: Dispatch quoted delivery fee of $5.50 will show up to the customer as a delivery fee of $3.50, if the fixed subsidy is $2.00

  • Fixed Fee: Specify a fixed fee (e.g. $10) to be charged to the end customer
    • Example: Irrespective of the Dispatch quoted delivery fee, $10 will always show up to the customer during checkout

  • Dispatch Fee: Charge the Dispatch quoted delivery fee without any markups or subsidies. This is the quote that is directly returned from the DSPs (delivery service provider).

  • Percentage Fee: Charge delivery fee based on the percent value (e.g. 10%) of order subtotal
    • Example: An order subtotal of $45 will be charged a delivery fee of $4.50, if the fee percentage is 10%

Tiered Fee Example 1

Tier 1

Min: $0

Max: $99

Strategy: Dispatch Fee

Tier 2

Min: $100

Max: ‘and above’

Strategy: Percentage Fee (15%)


Order subtotal: $55; Fee: $6.50 (DSP returned quote)

Order subtotal: $45; Fee: $5 (DSP returned quote)

Order subtotal: $125; Fee: $18.75 (15% of $125)

Tiered Fee Example 2

Tier 1

Min: $0

Max: $99

Strategy: Dispatch Fee

Tier 2

Min: $100

Max: $199

Strategy: Percentage Fee (10%)

Tier 3

Min: $200

Max: ‘and above’

Strategy: Fixed Fee ($30)


Order subtotal: $55; Fee: $6.50 (DSP returned quote)

Order subtotal: $550; Fee: $30

 

 

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