What decides the cost of a delivery?
Five things decide what a delivery costs you: the distance to the shopper, the parcel's size and weight, the company's own price list, how many parcels you send, and what a failed or returned order costs. There is no single delivery price in Iraq to copy, because each company has its own list and method.
- Distance. If your warehouse is in Baghdad, a parcel inside Baghdad is a different job from one to Basra in the far south or Erbil in the north. Cost usually rises with distance, but companies price differently, so ask before you assume.
- Size and weight. Large or heavy parcels usually cost more, and a company may price by weight, volume or governorate alone, so ask how it counts. This matters for products like home goods, where the parcel can be large next to the item's price.
- Price list and volume. Prices and terms differ between companies and can change, so do not rely on a figure from another merchant. If you send many parcels, ask whether volume changes your price.
- Failures and returns. A parcel that is not received costs you the trip out, sometimes the trip back, and brings no payment for the product.
How do you find your real delivery cost to each governorate?
You find your real cost by asking each company you might use for its price to every governorate, in writing, then testing with a few parcels and recording what you actually paid. Follow these steps:
- List the governorates you want to sell to, plus the busiest areas if you sell in a large city.
- Ask each company for the price of a small parcel to each governorate, and the extra for larger or heavier ones. Get the answer in writing and keep it. A WhatsApp message is enough.
- Send a few small test parcels to different governorates with each company before you commit.
- Compare what you paid with what you were told, note the difference, and repeat when prices change.
Copy this table into a notebook or spreadsheet, with a row for every governorate you sell to:
| Governorate or area | First company's price | Second company's price | Actually paid in the test | Notes |
|---|---|---|---|---|
| Baghdad | ||||
| Basra | ||||
| Erbil | ||||
| Another governorate |
What are the three ways to charge the shopper for delivery?
You can charge delivery fees between governorates in three ways: one fee for the whole country, a fee for each governorate, or a fee for each governorate and area. The second suits a store selling to several governorates: it is closer to your cost than the first and simpler than the third.
| Method | Advantage | Drawback | Suits you if |
|---|---|---|---|
| One fee for all Iraq | Simple to explain | You lose money on distant governorates, or nearby shoppers overpay | You are starting out, or sell a light product to a few governorates |
| A fee for each governorate | Close to your real cost, still simple | Needs a price table, updated when prices change | You sell to several governorates |
| A fee for each governorate and area | Most precise where areas differ | Many numbers to review | Your city is large and cost varies by area |
The third option does not mean a number for every area: set the governorate fee, then change only the areas that really differ. Whichever you choose, show the full fee before the shopper confirms, because a surprise at the door can end in a refused parcel.
How do you calculate the delivery fee, and who pays it?
You calculate the delivery fee by starting from what you pay the company to each governorate, adding packaging if you pay for it, then deciding how much the shopper pays. What stays with you after costs is your profit margin. You have three options:
- The shopper pays the full fee. It is the clearest option, and your margin is untouched.
- You absorb part. You lower the fee to win the sale, and your margin drops by that amount.
- You include part in the price. The fee looks lower, the price is higher, and the total is the same. But a product has one price in every governorate, so nearby shoppers pay the same increase as distant ones.
A worked example
These numbers are made up for the example and are not any company's price. A product sells for IQD 30,000 and costs you IQD 20,000 including packaging. You pay the delivery company IQD 6,000 to a distant governorate, and the shopper pays the total in cash under cash on delivery.
| Item | Shopper pays the full fee | You absorb part | You include part in the price |
|---|---|---|---|
| Product price in the store | IQD 30,000 | IQD 30,000 | IQD 32,000 |
| Delivery fee the shopper pays | IQD 6,000 | IQD 4,000 | IQD 4,000 |
| Total the shopper pays | IQD 36,000 | IQD 34,000 | IQD 36,000 |
| Your margin after delivery | IQD 10,000 | IQD 8,000 | IQD 10,000 |
Margin after delivery is what the shopper pays, minus the product cost, minus what you pay the company. First and third columns: 36,000 minus 20,000 minus 6,000 equals IQD 10,000. Second column: 34,000 minus 20,000 minus 6,000 equals IQD 8,000.
Two things stand out. The second option costs you IQD 2,000 on every order to this governorate, so choose it on purpose. The third gives the same margin as the first in this order, but the IQD 2,000 is added to the price for every shopper, near or far.
Before you decide, check that your margin is positive in your most distant governorate and your nearest. That covers a delivered order. A failed order is a different sum.
Who pays for an order that fails or comes back?
You decide who pays for a failed or returned order, and you write the rule where the shopper sees it before ordering. A vague rule ends in a loss for you or an argument at the door.
A delivery fails when the shopper does not answer, is away, refuses the parcel or gave an incomplete address. Because the shopper paid nothing in advance, a refusal costs them nothing and costs you the trip out and maybe back.
| Situation | Who pays (a suggested rule) |
|---|---|
| The shopper does not answer, is away or refuses for no reason | The shopper, before the order is sent again |
| You sent the wrong or a damaged product | You |
| The parcel is lost or damaged at the company | As agreed with it in writing |
These are suggestions, and the decision is yours: a strict rule may put some shoppers off, and a lenient one leaves you carrying the cost. Pick one and write it in two sentences, for example:
If you do not receive your order or you refuse it without a reason, we ask you for the delivery fee before we send you any new order.
Put the rule where the shopper sees it before ordering, such as the product description and your first chat reply. Shown before the order it reads as a condition. After a refusal it reads as a punishment.
In Madar you record an order that was not received as "Delivery failed", and the shopper gets a WhatsApp message about it, on by default and switchable off. If the parcel comes back, record it as "Returned" or "Partially returned" in order management. For more, read the cash on delivery guide.
How do you set delivery fees in Madar?
In Madar you set delivery fees for each governorate, and for each area if you need to, from the Delivery page of the dashboard, and you can change them at any time. If you have not opened your store yet, start with the guide to opening an online store in Iraq.
- Open the Delivery page. It holds the governorate fees and the list of delivery companies.
- Start with default fees for every governorate you sell to. As an example only: Baghdad IQD 5,000 and the other governorates IQD 8,000. These are demo figures, not any company's prices, so replace them.
- Adjust each governorate's fee from your cost table. You type fees in thousands of dinars, so 6 means IQD 6,000.
- In large cities, set a separate fee for an area whose cost differs. Other areas keep the governorate's fee.
- Add the delivery companies you work with to the list, and update fees whenever their prices change.
Madar's data covers 19 governorates and 683 areas (see the governorate pages). The shopper sees the fee in your store before confirming the order. Fees and the company list are on both plans, Basic and Pro. The delivery page explains the feature.
How do you work with delivery companies in Iraq?
You work with delivery companies through three habits: written questions before you start, a small first batch of orders, and a second option on standby. Ask each company:
- Cash settlement: when does it hand you the money it collected, and does it deduct its charge from that money or bill you separately?
- Failed deliveries: how many attempts does it make, does it call the shopper first, does the parcel come back to you, and is there a fee for the return?
- Tracking: does it give you a shipment number to follow and pass on to the shopper?
- Parcel limits: what is the largest size and weight it accepts?
- Damage and loss: does it compensate you if a parcel is damaged or lost, and on what terms?
Keep the answers in writing, start with a few orders, and compare the results with what you agreed before sending more. Do not depend on one company: try a second with a few parcels and keep it ready, since the first company's terms may change or it may come under pressure in busy seasons.
What should you check before you settle your fees?
Your fees are ready when you can confirm every item:
| Step | What to confirm |
|---|---|
| Know your cost | A written price from each company to each governorate you sell to |
| Test | A few small test parcels sent, and what you paid recorded |
| Choose how to charge | One fee, a fee per governorate, or per governorate and area |
| Work out your margin | Positive in your most distant governorate and your nearest |
| Decide who pays | The shopper, you, or part in the price, written down |
| Write the failed-order rule | Two clear sentences the shopper sees before ordering |
| Set the fees in Madar | A fee per governorate, plus exceptions for areas that need them |
| Review | Whenever a company changes its prices or your cost changes |
What does Madar do, and what does it not do?
Madar organizes your fees and orders. It does not do the delivery itself.
What Madar does:
- It stores a delivery fee for each governorate and area, and shows it to the shopper before the order is confirmed.
- It keeps the list of delivery companies you work with.
- It follows each order through nine statuses, including "Delivery failed" and "Returned", and sends the shopper WhatsApp messages when the order goes out, is delivered or fails.
- It takes no commission on your orders and has no hidden fees. The subscription is paid with a Visa or Mastercard card from any bank.
What Madar does not do:
- It does not deliver orders. You hand each order to the company you work with, or send it with one tap if you linked your account with Al-Waseet, Modon Express or Hi Express on Pro, and your delivery agreement is with that company.
- It does not set a price for you or compare companies' prices. Pricing is your decision.
- Shoppers cannot pay online yet. Payment is cash on delivery only.
To apply this, create your store and try Madar free for 10 days with all Pro features except the custom domain and no card, then choose a plan on the pricing page.