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Flat, percentage or tiered: which COD fee fits your store

By Flying Star Technologies. Updated 16 October 2026.

There are three common ways to price a Cash on Delivery fee. Each one suits a different order value profile. The examples below use the same rules that Flying Star COD Rules runs at checkout.

Flat fee

One amount on every COD order, for example ₹49. It is the easiest for buyers to understand and the easiest to explain in your shipping policy.

Best for: stores where most orders sit in a narrow price range, so a single amount covers the courier’s handling charge fairly.

Percentage fee

A share of the order value, for example 2%, with a highest fee so a very large order is not charged too much. A ₹1,500 order pays ₹30. A ₹5,000 order would pay ₹100, so a ₹99 cap holds it at ₹99.

Best for: stores with a wide range of order values, where the risk and the cash you wait for grow with the basket.

Tiered fee by order value

The fee steps down, or to zero, as the order grows. The last tier whose starting value is at or below the subtotal applies.

Best for: stores that want to nudge buyers to add one more item, because reaching the next tier makes COD cheaper or free.

Side by side

Rules that sit on top of any fee

• Minimum order: no COD fee under a value you choose.
• Free COD from a value: the fee applies only below it, which rewards bigger baskets.
• Pincode rules: charge only in listed pincodes, or exclude pincodes you want to keep free. Use this where you see more refused parcels.
• Country rules: limit the fee to the countries where you offer COD.
• Free COD products: products, vendors or product types that always ship COD for free, such as a hero product you want to sell easily.

New to COD fees on Shopify? Start with our guide to charging a Cash on Delivery fee without Shopify Plus.

Next: How to charge a Cash on Delivery fee on Shopify, without Plus