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Dispatch Fee Tiers


Note: This feature needs to be configured by Olo. If you have questions about this process or would like to configure tiers for your store(s), please speak to your Dispatch Specialist or submit a ticket to help@olo.com.

Overview

Our customers can set tiered Dispatch delivery fees based on order subtotal. This will let you control what the end customer pays based on how much they spend. Delivery fee tiers can be customized per store.

For every tier, you can specify a minimum and maximum value. Then, you can select which Dispatch fee strategy to apply to each tier (more information on fee strategies below). You can add as many fee tiers as you'd like.

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: $0.00

Max: $99.99

Strategy: Dispatch Fee

Tier 2

Min: $100.00

Max: ∞

Strategy: Percentage Fee (15%)


Order subtotal: $55.00; Fee: $6.50 (DSP returned quote)

Order subtotal: $45.00; Fee: $5.00 (DSP returned quote)

Order subtotal: $125.00; Fee: $18.75 (15% of $125)

Tiered Fee Example 2

Tier 1

Min: $0.00

Max: $99.00

Strategy: Dispatch Fee

Tier 2

Min: $100.00

Max: $199.99

Strategy: Percentage Fee (10%)

Tier 3

Min: $200.00

Max: ∞

Strategy: Fixed Fee ($30.00)


Order subtotal: $55.00; Fee: $6.50 (DSP returned quote)

Order subtotal: $550.00; Fee: $30.00

 

 

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