Billing Management: #8 Usage Billing in Logistics & Delivery Services
The logistics and delivery industry thrives on movement and precision. Every delivery completed, every kilometre driven, and every ton transported is a measurable activity. However, billing often lags behind. Many logistics companies still rely on fixed-rate or manual billing systems that don't account for fluctuating volumes, seasonal demands, or service variations.
As a result, businesses face challenges such as delayed invoicing, inconsistent revenue, and billing disputes with clients. In any industry where margins are thin and relationships depend on trust, these issues can significantly affect growth.
Zoho Billing brings automation and flexibility to the heart of logistics billing. Through usage-based billing, logistics providers can align their revenue directly with measurable usage, such as the number of deliveries, kilometres driven, or storage duration. This creates a fair, transparent, and scalable billing model for both service providers and clients.
The Traditional Billing Models
Traditional billing methods in logistics rely heavily on static pricing structures. A flat monthly fee or a standard per-delivery charge may seem convenient, but they often fail to reflect operational reality. Shipment volumes can vary by 30-50% month over month, and manual reconciliation between dispatch data and invoice introduces errors and inefficiencies.
Common challenges include:
An invoice that doesn't reflect actual usage.
Lengthy reconciliation cycles.
Under-billing or over-billing due to manual error.
Disputes caused by a lack of billing transparency.
Difficulty scaling as the business grows.
A static pricing model limits profitability and flexibility. Logistics businesses need billing systems that adapt dynamically to changing workloads, not the other way around.
What does usage billing mean for Logistics?
Usage-based billing allows logistics companies to charge customers based on actual consumption rather than a fixed value. This aligns perfectly with logistics operations, where activities are measurable and variable.
Sample Metrics | Billing Basis | Sector |
Number of Deliveries | per delivery completed | Courier and parcel services |
Distance travelled | per km/mile | Long-haul transportation |
Shipment weight | per kg/ton | Freight and bulk logistics |
Value Added Services | per service event | Packaging services |
With Zoho Billing, these metrics can be captured automatically from connected systems such as delivery tracking software, GPS devices or warehouse management tools. Each activity becomes a billable event, and invoices are generated automatically with complete transparency.
Let's look at two scenarios explaining how Zoho Billing helps logistics and delivery services based on consumption.
Scenario 1:
A regional courier service manages shipments for multiple e-commerce clients. Shipment volumes vary drastically, ranging from 500 packages per month for small vendors to 3000 for enterprises. The company needs a flexible model that scales with customer growth while better rewarding higher-volume customers.
Pricing Tier
For 1-1000 deliveries: $2.80
For 1001-2000 deliveries: $2.50
For 2001 and above: $2.20
If Client A completes 2300 deliveries a month. The billing will be as follows:
Item | Value |
No of deliveries | 2300 |
Rate per delivery: |
|
Total Invoice Value | $5,960 |
The service provider integrates the delivery tracking system with Zoho Billing using APIs. Zoho Billing automatically collects delivery data, calculates charges and generates an itemized invoice.
As a result, we get accurate, automated billing directly tied to usage. The invoice stays transparent and reduces administrative effort. Adopting a pure usage-based billing model along with a tier-based pricing model helps delivery businesses bill precisely for what is delivered, nothing more or nothing less.
As a result, we get accurate, automated billing directly tied to usage. The invoice stays transparent and reduces administrative effort. Adopting a pure usage-based billing model along with a tier-based pricing model helps delivery businesses bill precisely for what is delivered, nothing more or nothing less.
Scenario 2:
A nationwide carrier, services distributors and manufacturers. Clients have steady monthly shipment volumes but occasionally exceed their limit during high-demand periods. The service provider needs a pricing structure ensuring predictable revenue while capturing additional usage.
They offer a plan for $1,500 per month for up to 1000 shipments and an add-on usage cost of $1.20 per extra shipment beyond 1000.
They offer a plan for $1,500 per month for up to 1000 shipments and an add-on usage cost of $1.20 per extra shipment beyond 1000.
If a company ships 1450 packages in a billing cycle. The billing will cover,
If a company ships 1450 packages in a billing cycle. The billing will cover,
Item | Value |
Base Plan Price (covers 1000 shipments) | $1,500 |
Additional Usage | 450 |
Rate for additional shipment | $1.20/extra shipment |
Total Invoice Value | $2,040 |
By integrating the dispatch management system with Zoho Billing using API, the additional shipments are tracked, the overage rate is applied, and a consolidated invoice is generated.
This results in predictable revenue through the base plan and scalable income during peak sessions. Clear, detailed billing that strengthens customer trust.
The hybrid model offers flexibility for the service provider and the client, ensuring stability in slow periods and scalability in busy ones.
The hybrid model offers flexibility for the service provider and the client, ensuring stability in slow periods and scalability in busy ones.
Move on with Zoho Billing
Move on with Zoho Billing
Every delivery, kilometre, and warehouse movement represents the value your logistics business creates. With Zoho Billing, that value is captured and converted into accurate, transparent revenue.
By leveraging usage-based billing, logistics providers can modernize their financial operations, improve cash flow, and offer customers fair, data-backed pricing. Zoho Billing brings automation and intelligence to the heart of logistics billing, helping businesses deliver precision on roads and through invoices.
By leveraging usage-based billing, logistics providers can modernize their financial operations, improve cash flow, and offer customers fair, data-backed pricing. Zoho Billing brings automation and intelligence to the heart of logistics billing, helping businesses deliver precision on roads and through invoices.
As we move from usage billing to logistics, our next service will be Usage Billing in IoTs. Stay tuned!Access your files securely from anywhere
New to Zoho Recruit?
Zoho Developer Community
New to Zoho LandingPage?
Zoho LandingPage Resources
New to Zoho Survey?
New to Zoho CRM Plus?
Deliver unforgettable customer experiences
New to Zoho CRM Plus?
Deliver unforgettable customer experiences
New to Zoho Marketing Plus?
Everything you need to run your marketing
New to Zoho Marketing Plus?
Everything you need to run your marketing
New to Bigin?
Topic Participants
Hari Hara Sudhan. S
Sticky Posts
Community Learning Series | Digest #5 — September 2020
Dear customers, We're happy to bring you the September edition of our #CommunityDigest! Keep track of your subscription KPIs right from your smartphone: Last month, we enhanced our Android mobile app to help our customers get daily updates on their business health. We got to know from a lot of customers that this has made their job much more easier because they no longer have to keep a reminder to manually check on the previous day's revenue or activations. If you have not downloaded it yet, here'sCommunity Learning Series | Digest #4 - August 2020
Dear customers, We hope you're staying safe and healthy. I'm happy to bring you the fourth edition of our #CommunityDigest with some brand-new updates from us. 1. Daily Business Updates (for Android users) The Zoho Subscriptions Android app has got a cool new update: You can now get a push notification to your smartphone that lets you know how many activations and cancellations have taken place, and what's the net revenue for the previous day. The best part is, you can tell the app when exactly youCommunity Learning Series | Digest #3 - July 2020
Dear customers, We hope you're staying safe and healthy. We're glad to bring you the July edition of our #CommunityDigest. New community members can view our previous newsletters here. This time, we have two major updates and three interesting topics for you: 1. Zoho Subscriptions Developer Community Since the inception of Zoho Subscriptions, our team believed that the recurring billing platform we provide should be able to offer an extensive API library that empowers businesses to automate mostIntroducing: Community Learning Series | Digest #1 - May 2020
Dear customers, We hope you are staying safe and healthy. Helping businesses manage their customer subscriptions more efficiently has always been, and always will be, our goal at Zoho Subscriptions. We strongly believe this is possible if we grow together as a community and share what we know with each other. To nurture this shared learning experience, here is our brand-new Community Learning Series! Welcome to the first edition of our digest! Each edition of our community digest includes guides
New to Zoho TeamInbox?
Zoho TeamInbox Resources
Zoho CRM Plus Resources
Zoho Books Resources
Zoho Subscriptions Resources
Zoho Projects Resources
Zoho Sprints Resources
Qntrl Resources
Zoho Creator Resources
Zoho CRM Resources
Design. Discuss. Deliver.
Zoho Show Resources
Get Started. Write Away!
Writer is a powerful online word processor, designed for collaborative work.
Zoho CRM コンテンツ
-
オンラインヘルプ
-
Webセミナー
-
機能活用動画
-
よくある質問
-
Ebook
-
-
Zoho Campaigns
- Zoho サービスのWebセミナー
その他のサービス コンテンツ
Nederlandse Hulpbronnen
ご検討中の方
Recent Topics
Zoho Inventory / Finance Suite - Add feature to prevent duplicate values in Item Unit field
I've noticed that a client has 2 values the same in the Unit field on edit/create Items. This surprised me as why would you have 2 units with the same name. Please consider adding a feature which prevents this as it seems to serve no purpose.Kaizen #224 - Quote-driven Deal Reconciliation Using Zoho CRM Functions and Automation
Hello everyone! Welcome back to another instalment in the Kaizen series. This post covers quote-driven deal reconciliation, emphasizing Functions and Automation to address practical sales challenges. Business Challenge Sales organizations often mark dealsBARCODE PICKLIST
Hello! Does anyone know how the Picklist module works? I tried scanning the barcode using the UPC and EAN codes I added to the item, but it doesn’t work. Which barcode format does this module use for scanning?Zoho Inventory - Allow Update of Marketplace Generated Sales Orders via API
Hi Inventory Team, I was recently asked by a client to create an automation which updated a Zoho Inventory Sales Order if a Shopify Order was updated. I have created the script but I found that the request is blocked as the Sales Order was generated byHow do I create an update to the Cost Price from landed costs?
Hi fellow Zoho Inventory battlers, I am new to Zoho inventory and was completely baffled to find that the cost price of products does not update when a new purchase order is received. The cost price is just made up numbers I start with when the productVoC in Zoho CRM is now data savvy: Explore response drilldown, summary components and participation in CRM criteria
VoC has all the goods when it comes to customer intelligence—which is why we're constantly enhancing it. We recently added the following: A customer drilldown component that shows you the list of prospects and customers behind a chart's attribute ExpandedHow do I bulk archive my projects in ZOHO projects
Hi, I want to archive 50 Projects in one go. Can you please help me out , How can I do this? Thanks kapilPassing the CRM
Hi, I am hoping someone can help. I have a zoho form that has a CRM lookup field. I was hoping to send this to my publicly to clients via a text message and the form then attaches the signed form back to the custom module. This work absolutely fine whenCan I add Conditional merge tags on my Templates?
Hi I was wondering if I can use Conditional Mail Merge tags inside my Email templates/Quotes etc within the CRM? In spanish and in our business we use gender and academic degree salutations , ie: Dr., Dra., Sr., Srta., so the beginning of an email / letterZoho Browser??
hai guys, this sounds awkward but can v get a ZOHO BROWSER same as zoho writer, etc. where i can browse websites @ home and continue browsing the same websites @ my office, as v have the option in Firefox, once i save and close the browser and again when i open it i will be getting the same sites. If u people r not clear with my explanation, plz let me know. Thanks, SandeepLet’s Talk Recruit: LinkedIn Cheatsheet
Welcome to the first edition of Let’s Talk Recruit for 2026. We are kicking off the year by revisiting one of the most asked about topics in Zoho Recruit. How our LinkedIn integrations actually work and how recruiters can get the most value from them.Zoho Forms API
Is there any way to get all form entry list using API? Looking forward to hear from youAbility to Set Client Name During Portal Invitation
Hi Zoho Team, We would like to suggest an important enhancement to the Zoho Creator Client Portal functionality. Zoho Creator recently introduced the option to set a client’s display name in the Client Portal settings, which is very helpful for creatingMove email between inboxes?
Is it possible to move emails from one team inbox to another? We would like to be able to have a single "catch-all" inbox for incoming requests, and then move the email to the appropriate department inbox. I was hoping we would be able to accomplish thisPDF Attachment Option for Service Reports
Hello Team, I would like to check with you all if there is an option to attach PDF documents to the service reports. When I try to attach a file, the system only allows the following formats: JPEG, JPG, and PNG. Could you please confirm whether PDF attachments【Zoho CRM】データ一覧画面でのメモのバッジ機能リリースのお知らせ
ユーザーの皆さま、こんにちは。コミュニティチームの藤澤です。2026年度もゾーホーユーザーコミュニティをどうぞよろしくお願いいたします！ 今回は「Zoho CRM アップデート情報」の中から、新機能のデータ一覧画面でのメモのバッジ機能をご紹介します。 目次 概要 メモのバッジ機能について メモの作成について メモに関する様々な処理について 最近追加したメモについて メモのバッジの非表示について クライアントスクリプトの対応 概要 メモのバッジ機能について 既存の活動バッジに加えて、すべてのタブのデータ一覧表示画面に、各データごとに利用できる「メモのバッジ」（キャプチャ内の赤枠部分）が新たに導入されました。is it possible to add more than one Whatsapp Phone Number to be integrated to Zoho CRM?
so I have successfully added one Whatsapp number like this from this User Interface it seems I can't add a new Whatsapp Number. I need to add a new Whatsapp Number so I can control the lead assignment if a chat sent to Whatsapp Phone Number 1 then assignCan’t find fsm in zoho one
Every other app is available to me in Zoho one except fsmPosibility to add Emoticons on the Email Subject of Templates
Hi I´ve tried to add Emoticons on the Subject line of Email templates, the emoticon image does show up before saving the template or if I add the Emoticon while sending an Individual email and placing it manually on the subject line. Emoticons also showTask Deletion Restriction & Strict Stage Control
Hello Zoho Community, We have the following two issues currently pending and under testing, for which we require a workable and reliable solution: 1. Task Deletion Restriction We are testing ways to ensure that staff users are not able to delete tasksUnable to mass update a picklist field
Hello, I have the records within our Accounts module divided between two account types: Parent Accounts & Member Accounts. I am attempting to mass update accounts from one picklist value to the other (within other specific criteria in our custom fields)Process checklist in CRM
Hi We've created a new sales process that I'm mapping into the CRM - issue I have is that some of the tasks / milestones I would like to capture require very simple tick box responses but there are quite a few under a variety of sub categories so I don'tCRM project association via deluge
I have created a workflow in my Zoho CRM for closing a deal. Part of this workflow leverages a deluge script to create a project for our delivery team. Creating the project works great however, after or during the project creation, I would like to associateHolidays - Cannot Enter Two Holidays on Same Day
I have a fairly common setup, where part-time employees receive 1/2 day's pay on a holiday and full-time employees receive a full day's pay. Historically, I've been able to accommodate this by entering two separate holidays, one that covers full-timeWhere is the settings option in zoho writer?
hi, my zoho writer on windows has menu fonts too large. where do i find the settings to change this option? my screen resolution is correct and other apps/softwares in windows have no issues. regardsFile emails in Shared email folder
Hi, I am unable to allow users to collaborate in Shared email folders: User 1 shares a folder let's say "SharedTopic" with full permissions Users 2 and 3 can see this folder but are unable to add emails to this folder or search in this folder. For example,This user is not allowed to add in Zoho. Please contact support-as@zohocorp.com for further details
Hi Team, when I,m trying to create a email account (imagixmidia.com.br) it's showing this error >> This user is not allowed to add in Zoho. Please contact support-as@zohocorp.com for further details plz help me thanksHow to manage task lists in Zoho Desk?
Hello, I use Zoho Desk for IT customer support. I have a list of standard operating procedures (SOPs), including SOPs for onboarding new users, offboarding users, losing a device, etc. These are lists of tasks to be performed depending on the situation.User
If user is already part of manage engine endpoint central , what hapens when i try to add them to another Zoho org / directory? Are these users added as external users?Activating Zobot instead of chat
Hi folks, I know this will be obvious, but I have not been able to locate the details on this via google or youtube. We've had SalesIQ life chat set up for a while now and it is working perfectly. I have just finished development of a Zobot (using codeless)Adding a new section to the related details sidebar when creating a new ticket.
Hello, I was wondering if you can add a new section to the related details sidebar when creating a new ticket. I was wanting to have it to where it also shows the account information related to the contact chosen as well. This is the section I am referringDisplaying only unread tickets in ticket view
Hello, I was wondering if someone might be able to help me with this one. We use filters to display our ticket list, typically using a saved filter which displays the tickets which are overdue or due today. What I'd really like is another filter thatOne Contact with Multiple Accounts with Portal enabled
I have a contact that manages different accounts, so he needs to see the invoices of all the companies he manage in Portal but I found it not possible.. any idea? I tried to set different customers with the same email contact with the portal enabled andIs Zoho Shifts included in the Zoho One plan?
In case the answer is no: there's any plan to make it available via One? Thank youZoho Tracking Image location
So we've been having an issue with tracking email opens. Specifically in Gmail. Our emails are not that long either, maybe 4 sections of image/250 characters of text/button per section. But all my test accounts I used via Gmail we're showing opens. But then come to find out the tracking image is at the very bottom of the email. So If the message is clipped (It always just clips our social icons on the bottom) and the user doesn't click the show more button it never tracks the open. Looking at otherCreating an invoice to be paid in two installments?
Hi there, I own a small Photographic Services business and have not been able to find a way to fit my billing system into Zoho, or any other Accounting software. The way my payments work is: 1. Customer pays 50% of total price of service to secure theirZoho Tables is now live in Australia & New Zealand!
Hey everyone! We’ve got some great news to share — Zoho Tables is now officially available in the Australian Data Center serving users across Australia and New Zealand regions! Yes, it took us a bit longer to get here, but this version of Zoho TablesDelivery and handling of documents e-stamped using Zoho Sign
Hello everyone! Zoho Sign makes it easy to pay non judicial stamp duty online and automatically attach the digitally generated e-stamp challan to electronic documents. We also manage the delivery of physical e-stamped papers. We periodically receive theseIntroducing Dedicated Modules for Plans, Addons, and Coupons in Zoho Billing
We’ve enhanced the way you manage Plans, Addons, and Coupons in Zoho Billing. Previously, all three grouped together under Subscription Items. Now, each one has its own dedicated module, giving you a cleaner and more intuitive experience. This updateSortie de Zoho TABLE ??
Bonjour, Depuis bientôt 2 ans l'application zoho table est sortie en dehors de l'UE ? Depuis un an elle est annoncée en Europe Mais en vrai, c'est pour quand exactement ??Next Page