Different zip code has different price, The standard term in the United States and the Philippines; ZIP is an acronym for Zone Improvement Plan postal code (also known locally in various English-speaking countries throughout the world as a postcode, post code ZIP Code) is a series of letters or digits or both, sometimes including spaces or punctuation, included in a postal address for the purpose of sorting mail.
The two codes are essentially the same in their purpose, but the term Zip code is mainly used in the USA; Postal Code is commonly used in other countries.
The practice of charging different customers different prices for the same item is fairly common among online sellers and perfectly legal in most instances. It’s called dynamic pricing,
By 1930 or earlier the idea of extending postal district or zone numbering plans beyond large cities to cover even small towns and rural locales was in the air. These developed into postal codes as they are defined today. The name of US postal codes, “ZIP codes”, reflects this evolutionary growth from a zone plan to a zone improvement plan, “ZIP”.
Geographic coverage
Different zip code has different price are usually assigned to geographical areas. Sometimes codes are assigned to individual addresses or to institutions that receive large volumes of mail, e.g. government agencies or large commercial companies.
Availability
The availability of postal code information has significant economic advantage. In some countries, the postal authorities charge for access to the code database difference between Zip Code and Postal Code.
Zip codes definitely do affect pricing! Every city has at least one that is “the” neighborhood to live in. Here are some reasons why you might need location-based pricing:
- If you offer free shipping, then your profitability will vary depending on the customers location. There's no way to avoid this because shipping companies often charge different rates depending on the customers zip code, area or country.
- If your website sells worldwide, then depending on your payment methods, taking payments from customers from other currencies might incur higher fees for you.
- There may be higher legal or administrative fees relating to selling in certain places. You might try to recoup some of this by charging higher prices to those customers. For example, different locations may have different tax rules or legal requirements which make it harder to sell to that area.
- If you provide local services then your prices may differ based on each customers zip code area.
Perhaps you want to reward locals with lower pricing depending on their zip code.