Billing and pricing for on-demand deliveries
Billing for on-demand deliveries works in the same way that it does for other shipping methods. When a customer chooses on-demand delivery at checkout, the delivery cost is added to the total cost of their order. The delivery cost is calculated based on the distance from your shipping address to your customer's delivery address. This amount is credited to you when you capture payment for the order in your Shopify admin. When you fulfill the customer's order, the same delivery cost is charged to your Shopify account.
When you schedule a pickup, the quoted shipping rate that your customer already paid is charged to your Shopify account. Just like Shopify Shipping labels, you'll receive a bill through your Shopify account for all incurred shipping charges. Bills for local deliveries and shipping labels are generated weekly, or when you reach a set amount based on the value of the local deliveries you've purchased, whichever comes first.
Pricing for on-demand delivery
On-demand delivery costs vary based on the service that you're using, the city that your business operates in, and the distance between your store's shipping address and the customer's shipping address.