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.
You can absorb or pass on to the customer as much of the cost of on-demand delivery as you want by adjusting your shipping rates in your Shopify admin, in the same way that you can when you're using other shipping methods.
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 an invoice through your Shopify account for all incurred shipping charges. Invoices 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.
The quoted rate is guaranteed for about 5 minutes from the time that it is generated. It's possible (although unlikely) that the amount charged to your Shopify account may differ from the amount paid by the customer. If the rate quoted to the customer does change, then you will be notified about the discrepancy before you schedule a pickup.