Reseller Operations

Local Marketplace Operations

How to offer local delivery without losing money

A method for pricing local delivery so it's a genuine convenience fee, not an unpriced cost that quietly eats into your profit on bulky items.

By ListNestly EditorialPublished 2026-08-28Reviewed 2026-08-28Editorial methodology

Local delivery is a genuine convenience buyers will pay for, especially on furniture and appliances — but it has a real cost in time, fuel, and vehicle wear that's easy to leave unpriced. Offering it "for free" or for a token flat fee often means quietly absorbing that cost out of the item's profit.

What actually belongs in a delivery price

  • Fuel and mileage, based on actual round-trip distance, not a flat guess.
  • Your own time, valued at whatever hourly rate you'd want to be paid for driving and handling — including loading and unloading, not just drive time.
  • Vehicle wear on a rough per-mile basis, particularly for larger or heavier items that add real strain.
  • A buffer for the delivery falling through after the drive (a no-show at the delivery address) — see the no-shows article for the same underlying risk on the buyer side.

Delivery fee floor

deliveryFee ≥ (mileage cost) + (time value) + (vehicle wear allowance)

Example (illustrative): A round trip of 20 miles at a reasonable per-mile cost, plus 45 minutes of time valued at your own target hourly rate, plus a modest wear allowance for a heavier item, might floor a reasonable delivery fee well above a token "$10 for delivery" rate. Treat this as a starting method, not a fixed number — your own costs and market will differ.

Deciding when delivery is worth offering at all

Delivery makes the most sense on items too large to reasonably ship and where pickup-only would eliminate a meaningful share of otherwise-interested local buyers — bulky furniture and appliances are the clearest fit. For smaller items that ship economically, delivery is rarely worth the time compared to shipping.