Let’s set up the scenario first. We want to

To do this, we’ll have to set up 2 rates; one for up to 5km, and one for distances more than 5km

For this example, we’ll use price-based rates, but you can use weight-based rates too. If you don’t know how to create a rate yet, please check out the create a rate guide.

1. Let’s give this rate a recognizable name—Delivery up to 5km.

2. For Rate limits, we’ll set

3. For Pricing, we’ll set the base delivery fee to $10, and no price per kilometer.

4. Click Create rate.

Now that we have the first rate set up, let’s create the next rate.

1. Let’s give this rate a recognizable name—Delivery more than 5km

2. For Rate limits, we’ll set

3. For Pricing, we’ll set the base delivery price to $5, and price per kilometer to $1.

4. Click Create rate.

You should now have these two rates:

You might be wondering why we need 2 rates, and why the pricing of rate 2 looks so complicated.

The main thing to remember here is that delivery price per kilometer ignores minimum distance. In other words, delivery price per km always calculates from 0km, no matter what you put as minimum distance. This means you might need to do a bit of light math to get the base delivery fee for rate 2 set up.

You can use this formula to help you calculate that base delivery fee:

I know formulas can be hard to understand on their own, so let’s put this one into action.

For the first example, let’s use the numbers we used at the beginning of this article.

For this example, let’s use something straightforward

Let’s use bigger numbers this time.

As you can see here, base delivery fee can indeed go into negatives.

Hope this helped you set up your rates. If not, send us an email to [email protected] and we’ll be happy to help you out.