A KSh 500 sale needs a subsidy ceiling
Yes, a KSh 500 order can afford a delivery subsidy—but only when enough remains after the product, packaging and delivery costs. The selling price alone cannot answer the question. Before promising a discount on delivery, calculate the contribution left on that specific sale.
Make Moveka your next quote: enter the actual parcel details and locations to see applicable delivery options and prices. That gives you the delivery figure your decision needs.
Start with what the order actually leaves
For this decision, use a simple calculation:
Order contribution = item revenue + customer delivery charge − product cost − packaging cost − delivery cost.
The customer delivery charge is revenue collected towards delivery. The delivery cost is the amount the delivery service charges. Their difference is the subsidy you fund when you charge the customer less.
Keep those figures separate. If you subtract the full delivery cost and include the customer's delivery payment, do not subtract the subsidy again. That would count the same cost twice.
Also, contribution is not net profit. Rent, staff, advertising and other overheads may still need paying from what remains.
Work the KSh 500 order before saying yes
Here is an illustrative example, not a Moveka tariff. Imagine you sell a phone accessory through your Instagram shop:
- Item selling price: KSh 500
- Product cost: KSh 300
- Packaging: KSh 20
- Delivery cost: KSh 150
- Customer delivery charge: KSh 100
Before delivery, the sale leaves KSh 500 − KSh 300 − KSh 20 = KSh 180.
You cover KSh 150 − KSh 100 = KSh 50 of delivery. The order therefore contributes KSh 180 − KSh 50 = KSh 130 before overheads.
Check it using the full calculation: KSh 500 + KSh 100 − KSh 300 − KSh 20 − KSh 150 = KSh 130.
That KSh 50 subsidy might fit your budget. Offering free delivery on the same illustrative order would leave just KSh 180 − KSh 150 = KSh 30 before overheads. The customer pays no delivery charge; your business funds the whole delivery cost.
Set your minimum, then find your maximum
Choose the contribution you want to retain before negotiating. This is a business budgeting choice, not a universal margin rule.
Using the same illustrative figures, suppose your minimum contribution is KSh 120. Your maximum delivery subsidy is:
KSh 180 available before delivery − KSh 120 minimum contribution = KSh 60.
With a KSh 150 delivery cost, the customer would need to contribute at least KSh 150 − KSh 60 = KSh 90 towards delivery.
Charging KSh 100 leaves you above your chosen minimum. Charging KSh 80 leaves a KSh 70 subsidy and only KSh 110 contribution, below it.
This gives you a clear boundary when a buyer asks, “Can you help with delivery?” You can offer a specific amount without guessing.
A message you can reuse
“The item is KSh 500. For this order, I can cover KSh 50 towards delivery. Your delivery charge would be KSh 100, making the total KSh 600. Shall I confirm the order details?”
Use your actual figures before sending. Keep the goods payment and delivery charge distinct. Moveka is cashless; follow the terms of your selected option.
Quote first. Subsidise with a limit.
If the numbers do not fit, reduce the subsidy or explain the delivery charge clearly. A larger basket may create more room, but recalculate its product costs, packaging and delivery before offering anything extra.
For your next KSh 500 sale, get the applicable Moveka price, set your contribution floor and offer only the subsidy the order can support. Choose the option whose price and selected terms suit the order.
