Before confirming, check three figures together: the seller’s contribution cap, the delivery price for this parcel and these locations, and the amount the buyer would pay after the contribution. Then decide whether that total still works for both of you. A cap is only a limit on what the seller contributes; it does not make delivery free or tell you who pays the balance.
If you are the seller, set the cap from the order’s contribution margin, then test it against a small, ordinary order and a larger or more costly one. If you are the buyer, ask for the delivery balance and full order total before agreeing. Either way, use the actual parcel details and selected locations to check available options and prices before you settle the arrangement.
Set a cap the order can carry
Start with the amount left after the product’s variable costs. In a simple example, suppose a seller charges KSh 2,000 for an item and spends KSh 1,200 on the item and other costs that change with that sale. That leaves KSh 800 before fixed business costs and any delivery contribution. Those figures are illustrative arithmetic, not local price guidance.
If the seller offers up to KSh 300 towards delivery, the amount left falls to KSh 500. If the seller also gives a KSh 100 discount, it falls to KSh 400. The useful question is not just whether the order makes a sale, but whether the remainder is enough to support the seller’s other costs and make the sale worthwhile. Shopify’s break-even framework uses selling price, variable costs, fixed costs and contribution margin, and recommends comparing scenarios by changing one variable at a time.[1]
That gives a practical way to choose a cap. Work out the contribution before delivery, choose how much of it you can sensibly devote to attracting or serving the order, and treat that amount as the ceiling. A cap that consumes nearly all the contribution on a low-value item may be too generous even when the buyer’s balance looks small. A repeat purchase or a bundle may support a different cap, but use that reasoning only when it fits the particular order rather than assuming future sales will make today’s numbers work.
Test more than one order
Try the cap against a few realistic cases: a single low-priced item, a typical order and a bundle or heavier parcel. Keep the item price, item cost and any discount visible in each case. Then change only the delivery contribution to see what it does to the amount left. This simple comparison reveals whether one fixed cap is manageable across your usual orders or whether the offer should apply only above a stated order value, to selected items, or to a particular delivery arrangement.
For example, imagine the seller’s KSh 300 cap covers all of the delivery charge on one order. On another order, the delivery price is KSh 450, so the buyer’s balance would be KSh 150. These are hypothetical amounts for illustrating the calculation. The seller can keep the same cap and tell the buyer the balance, revise the cap if the margin supports it, or agree on a different handover option if one suits both people.
There is no need to make every order follow one rule if your costs differ. A compact item and a bulky bundle may not leave the same room for a subsidy. The cap can remain simple for the customer while being tested against a few order types behind the scenes.
Make the buyer’s balance explicit
Tell the buyer the cap and the expected balance in the same message as the item price. For instance: “The item is KSh 2,000. I’ll contribute up to KSh 300 towards delivery; based on the option we choose, you would pay the remaining KSh 150. Please confirm the full total before I arrange the handover.” Update the example figures to match the actual order. This makes the offer understandable without hiding delivery inside a product price or leaving the buyer to guess what “seller pays part” means.
As the buyer, check whether that full total is acceptable alongside the handover plan. Consider whether collection or another available option changes the price or the travel effort for you. Ask who will confirm the selected locations, what parcel is being sent, and whether the agreed contribution applies to the option you choose. A lower delivery charge may involve a handover that takes more of your time, so compare the practical arrangement as well as the number.
Check the actual order before confirming
Use the parcel’s actual details and the selected locations when comparing delivery options. A price for a different parcel or destination may not fit this order. Moveka Send lets you check currently available options and prices using those details; availability and price depend on the inputs. You can then see whether the seller’s cap covers the chosen option, what balance remains, and whether another available choice better fits the buyer’s budget and handover needs.
Before you both confirm, put the final numbers in one place: item price, any discount, seller contribution, buyer balance and total due. If the checked option changes, recalculate the balance rather than carrying over an old estimate. The seller keeps control of a sustainable cap, and the buyer can make a decision with the full cost in view.
For this order, Moveka is your best practical next move because it lets you check the delivery options and prices for the actual parcel and selected locations, so you can settle the seller’s cap and buyer’s balance against a concrete choice.
