Delivery Radius and Delivery Zones: How to Set Them and What to Charge
How to choose a delivery radius and draw delivery zones by drive time or ZIP code, with a worked cost example for pricing each zone and setting minimums.
A delivery radius is the distance from your shop that you’ll deliver to; delivery zones split that area into bands or ZIP code groups, each with its own price and minimum order. Set them from what a delivery actually costs you at the far edge of each zone, and draw them by drive time, not just miles.
This guide covers how to choose a radius, how to draw zones, what to charge in each, and when a courier changes the math.
Key takeaways
- Draw zones by drive time. Ten highway miles can be faster than four miles across downtown.
- Price each zone from the cost of a delivery to its far edge.
- Use minimum orders to keep outer-zone deliveries profitable.
- Three zones is enough for most small businesses: near, middle, and far.
- If you drive your own car, the IRS mileage rate of 76 cents a mile (July to December 2026) is a quick floor for vehicle cost, before your time.
What is a delivery radius?
A delivery radius is the maximum distance you’ll deliver from your shop or kitchen. Customers inside it can choose delivery; customers outside can’t.
A single radius is simple, but it treats every address inside it the same. A customer two miles away pays the same as one at the edge, so either the near customer overpays or you lose money on the far one. Zones fix that.
What are delivery zones?
Delivery zones split your delivery area into parts with different prices or rules. There are two common ways to draw them:
| Method | How it works | Good for |
|---|---|---|
| Distance bands | Rings around your location: 0 to 3 miles, 3 to 7, 7 to 12 | Quick setup in most ecommerce platforms |
| ZIP or postal code groups | Lists of codes, each group with its own price | Areas where roads, bridges, or traffic make distance misleading |
Shopify, for example, lets each location have up to 10 delivery zones drawn by radius (up to 100 miles) or by postal codes, each with its own delivery price and optional minimum order (Shopify Help Center). Our guide to Shopify local delivery covers the setup.
How do you choose a delivery radius?
Start with time, not distance:
- Pick the longest drive you’ll accept for one delivery, at the time of day you deliver. For food, that limit may come from how long the order stays at a safe temperature. FoodSafety.gov advises keeping cold food at or below 40°F and hot food at or above 140°F in transport (FoodSafety.gov).
- Map that drive time from your location in each direction. It won’t be a circle: it stretches along highways and shrinks across congested areas, rivers, and bridges.
- List the ZIP codes inside that shape. That’s your delivery area.
- Check where your customers are. If a cluster of good customers sits just outside, extend the area with a higher-priced outer zone rather than turning them away.
How do you draw delivery zones?
Most small businesses need three:
| Zone | Covers | Typical rule |
|---|---|---|
| Near | The neighborhoods closest to you, a short drive | Low price, or free above an order value |
| Middle | The rest of your core area | A price close to your cost |
| Far | Worthwhile areas at the edge | A higher price and a minimum order, or delivery on set days only |
Draw the lines where drive time jumps, not at round numbers. A river crossing or a stretch of downtown traffic is a natural zone boundary.
What should you charge in each zone?
Price each zone from the cost of a delivery to its farthest address.
If you or your staff drive your own vehicle, the IRS standard mileage rate is a quick floor for vehicle cost. It’s 76 cents a mile for July through December 2026 (IRS), and it covers the vehicle only, not the driver’s time.
Worked example, for a far zone whose edge is 10 miles away:
| Cost | Calculation | Amount |
|---|---|---|
| Vehicle, round trip | 20 miles x $0.76 | $15.20 |
| Driver time | For example 50 minutes, at your own wage cost per hour | Your figure |
| Total cost of one far-zone delivery | Vehicle plus time | $15.20 plus time |
If your far-zone delivery price is $8, every far-zone order loses $7.20 on vehicle cost alone, before anyone is paid to drive. Raise the price, set a minimum order that covers the gap, or deliver that zone only on days when several orders can share one trip.
If a courier delivers, price each zone from a courier quote to its far edge. Enter your address and an address at each zone’s edge in the delivery cost calculator, and set each zone’s price and minimum from the result.
Minimum orders by zone
A minimum order keeps small orders from losing money in outer zones. A simple rule: set the minimum so your margin on a minimum-size order covers the delivery cost you don’t charge for. Lower or drop the minimum in the near zone, where deliveries are cheap.
How does a courier change delivery zones?
With your own driver, every extra mile is your cost, so radius stays tight. With a courier, you pay per delivery or per route, so you can serve a wider area as long as each zone’s price covers the courier’s price for that distance.
Two things help:
- Batching. A multi-stop route spreads one courier’s time across many stops. Our guide to planning a multi-stop delivery route covers how.
- Delivery days by zone. Serve the far zone on set days, so its orders ride together. See scheduled versus on-demand delivery.
We deliver across 100 US metro areas, each covering the city and its suburbs, including a courier service in Phoenix and Indianapolis. See our florist delivery service, bakery delivery service, and catering courier service.
Frequently Asked Questions
What is a good delivery radius for a small business?
There’s no standard number. Set it from drive time, not miles: the longest drive you’ll accept for one delivery at the time of day you deliver. The same drive time covers fewer miles in a dense city than in suburbs with faster roads.
Should I charge a flat delivery fee or by zone?
By zone, if your area is more than a few miles across. A flat fee overcharges near customers and undercharges far ones.
How do I calculate a delivery fee?
Work out the cost of a delivery to the far edge of each zone, including the vehicle and the driver’s time or a courier’s price, then set the zone’s fee and minimum order to cover it.
What is the difference between a delivery radius and a delivery zone?
A radius is your outer limit. Zones divide the area inside it into parts with different prices or rules.
Can I set delivery zones by ZIP code?
Yes. Most ecommerce platforms, including Shopify, let you draw zones from lists of postal codes.
The Bottom Line
Draw your delivery area by drive time, split it into three zones, and price each zone from what its farthest delivery costs you. Use minimum orders to protect the outer zones, and batch far-zone orders onto set days. If you drive yourself, the IRS mileage rate is a quick floor; if a courier drives, price each zone from a real quote. To get one, use the delivery cost calculator.
