---
title: "Geographic Zones - Complete Guide"
description: "Geographic zones are smart groupings of areas that share similar characteristics for shipping and pricing purposes. Instead of configuring prices for each individual…"
url: https://sistrack.com/en/docs/pricing/zonas-geograficas/
category: pricing
section: docs
updated: 2026-07-28
---


*Markdown version for agents. This page on the web: https://sistrack.com/en/docs/pricing/zonas-geograficas/*


# Geographic Zones - Complete Guide


## 🎯 What are Geographic Zones?

Geographic zones are smart groupings of areas that share similar characteristics for shipping and pricing purposes. Instead of configuring prices for each individual postal code (imagine configuring thousands!), you group similar areas into zones.

## 🏗️ Structure of a Zone

Each zone has:
- **Unique code**: Short identifier (e.g., "MAD_CENTRO")
- **Descriptive name**: To easily identify it (e.g., "Madrid Centro")
- **Country**: Which country it belongs to (optional)
- **Geographic definition**: The postal codes it includes

## 📍 Types of Zone Definitions

Sistrack offers **two methods** to define which areas belong to each zone:

### Method 1: By Postal Codes

Ideal for countries where postal codes are well established and commonly used (Spain, United States, etc.).

#### 1a. By Individual Postal Code
You define specific postal codes one by one.

**Example**: "Historic Center" Zone
- ZIP 28001
- ZIP 28002
- ZIP 28003
- ZIP 28004
- ZIP 28005

**When to use**: For small, very specific areas where you need precise control.

#### 1b. By Postal Code Range
You define a continuous range of postal codes.

**Example**: "Madrid Capital" Zone
- From ZIP 28001 to ZIP 28050

**When to use**: For large areas with consecutive postal codes.

#### 1c. By Combination of Postal Codes
You mix individual codes and ranges.

**Example**: "Metropolitan Area" Zone
- Range: 28001-28050 (Madrid capital)
- Range: 28100-28150 (Alcobendas)
- Individual: 28223 (Pozuelo special)
- Individual: 28660 (Boadilla)

**When to use**: For complex zones that include several non-contiguous areas.

---

### Method 2: By Administrative Location (State/City) 🆕

Ideal for **Latin American** countries where postal codes aren't commonly used or don't exist for all areas.

#### 2a. By Full State/Department/Province
You define a zone covering an entire state or department.

**Example**: "Antioquia" Zone
- State: Antioquia
- City: *(empty = the whole state)*

**When to use**: For uniform rates across an entire state or department.

#### 2b. By Specific Cities
You define specific cities within a state.

**Example**: "Southwest Spain" Zone
- State: Andalucía, City: Málaga
- State: Andalucía, City: Sevilla
- State: Andalucía, City: Cádiz
- State: Andalucía, City: Huelva

**When to use**: For rates differentiated by city within the same region.

#### 2c. Combination of State + Cities
You can combine full-state definitions with specific cities.

**Example**: "Central Mexico" Zone
- State: Ciudad de México *(all)*
- State: Estado de México, City: Ecatepec
- State: Estado de México, City: Naucalpan
- State: Estado de México, City: Tlalnepantla

**When to use**: When you need to cover a whole state plus specific cities from adjacent states.

### 🌎 Labels by Country

The system automatically shows the correct names based on the country:

| Country | State/Department | City/Municipality |
|------|---------------------|------------------|
| 🇪🇸 Spain | Autonomous Community | Province |
| 🇲🇽 Mexico | State | Municipality |
| 🇨🇴 Colombia | Department | Municipality |
| 🇵🇦 Panama | Province | District |
| 🇨🇱 Chile | Region | Commune |
| 🇦🇷 Argentina | Province | Locality |
| 🇵🇪 Peru | Department | Province |
| 🇪🇨 Ecuador | Province | Canton |
| 🇻🇪 Venezuela | State | Municipality |
| 🇺🇸 United States | State | City |

### ⚡ Which Method to Choose?

| Situation | Recommended Method |
|-----------|-------------------|
| You operate in Spain, USA, Europe | Postal Codes |
| You operate in Mexico, Colombia, LATAM | Administrative Location |
| You operate in multiple countries | Both (depending on the country) |
| Your customers don't know their postal code | Administrative Location |
| You need exact precision | Postal Codes |
| Broad zones by region | Administrative Location |

## 🔀 When several zones match

This is what surprises people most when setting up rates for the first time: **an address can fall into several zones at once, and that's normal**. The system doesn't pick one and discard the rest; it gathers all of them and lets the **rate rule's priority** decide the price.

### Which zones the system gathers

For each address it looks, in this order, for:

1. **Exact city match**, if you defined the zone by location.
2. **Full state match**, if the zone covers the entire state. This **adds** to the previous one, it doesn't replace it: if you have a "Ciudad de México" zone and another "Full Estado de México" zone, an address in the capital can belong to both.
3. **Postal code**, if you defined the zone by ZIP. It first looks for an exact code; if it doesn't find one, it searches your ranges and keeps **the narrowest range**, as the most specific one.
4. **The country's catch-all zone**, which is **always** added as a fallback.

### How the price is then decided

The more zones that match, the more candidate routes there are, and therefore the more rate rules compete. The one with the **lowest priority number** wins.

The practical consequence is simple:

> Set **low priority numbers** on the rates for your specific routes and **high numbers** on the general fallback rates.

If you've never touched priority, all your rates have the same number and the outcome stops being predictable when two compete. The **rate tester** tells you exactly which zones matched and which rule won.

> A detail about ranges: if two postal code ranges cover the same address, the narrower one wins. And if you compare a numeric range with one that has letters, the numeric one takes precedence.

## 🎨 Strategies for Creating Zones

### Strategy 1: By Distance (Concentric Circles)

You create zones based on distance from your operations center:

```
🎯 Zone 1: Local (0-10 km)
   - Your city
   - Lowest price

🔵 Zone 2: Metropolitan (10-50 km)
   - Nearby cities
   - Medium price

🟢 Zone 3: Regional (50-200 km)
   - Entire province
   - Medium-high price

🟡 Zone 4: National (200+ km)
   - Rest of the country
   - Highest price
```

### Strategy 2: By Area Type

You group by urban characteristics:

```
🏙️ Urban Zones
   - City centers
   - Easy access
   - Fast deliveries
   - Standard price

🏘️ Suburban Zones
   - Residential areas
   - Moderate access
   - Slightly higher price

🏞️ Rural Zones
   - Towns and countryside
   - Difficult access
   - Premium price
```

### Strategy 3: By Province/State

Each province or state is a zone:

```
📍 "Madrid" Zone
   - All Madrid postal codes (28xxx)

📍 "Barcelona" Zone
   - All Barcelona postal codes (08xxx)

📍 "Valencia" Zone
   - All Valencia postal codes (46xxx)
```

### Strategy 4: Custom by Business

Based on your specific needs:

```
⭐ Premium Zones
   - VIP customers
   - Important commercial zones
   - Special price

🏭 Industrial Zones
   - Industrial parks
   - Special handling
   - Differentiated rate

🏖️ Tourist Zones
   - Vacation areas
   - High/low season
   - Variable prices
```

## 📝 Practical Examples

### Example 1: Local Courier Company

**Situation**: You operate in Madrid and the surrounding area.

**Zones created**:
1. **"Madrid Centro"** (28001-28015)
   - The heart of the city
   - 2-hour deliveries

2. **"Madrid Norte"** (28016-28030)
   - Northern neighborhoods
   - 4-hour deliveries

3. **"Madrid Sur"** (28031-28045)
   - Southern neighborhoods
   - 4-hour deliveries

4. **"Periferia"** (28046-28080)
   - Outlying areas
   - Next-day deliveries

### Example 2: National Ecommerce

**Situation**: You sell nationwide from Barcelona.

**Zones created**:
1. **"BCN Local"** (08001-08050)
   - Barcelona city
   - Same-day delivery

2. **"Cataluña"** (08xxx, 17xxx, 25xxx, 43xxx)
   - The entire region
   - 24 hours

3. **"Península"** (Rest of mainland Spain)
   - 48-72 hours

4. **"Islas"** (07xxx, 35xxx, 38xxx)
   - Baleares and Canarias
   - 4-5 days

### Example 3: Specialized B2B Service

**Situation**: Deliveries between businesses in industrial parks.

**Zones created**:
1. **"Polígono A"** (specific ZIPs of the park)
   - 1-hour delivery

2. **"Polígonos Cercanos"** (other parks within 20km)
   - 3-hour delivery

3. **"Zona Empresarial"** (office areas)
   - Same-day delivery

4. **"Resto Ciudad"** (other areas)
   - 24-hour delivery

## 🛠️ How to Configure Zones

### Step 1: Analyze Your Operation
- Where are your customers?
- What are your delivery capabilities?
- Which areas are priorities?

### Step 2: Define Your Strategy
- Choose one of the strategies above
- Adapt it to your needs
- Consider operational costs

### Step 3: Map Postal Codes
- List all the ZIPs you cover
- Group them according to your strategy
- Verify there are no unassigned ZIPs

### Step 4: Create the Zones in the System
1. Go to **Rates → Geographic Zones**
2. Click **"New Zone"**
3. Fill in:
   - Unique code
   - Descriptive name
   - Country (if applicable)
4. Add the postal codes:
   - Individually or by range
   - Check for duplicates

### Step 5: Activate the Zones
- Mark as "Active"
- Verify the configuration
- Save changes

## ⚡ Tips and Best Practices

### ✅ What you SHOULD do:

1. **Be thorough**: Make sure you cover ALL the postal codes in your service area
2. **Use clear names**: "Barcelona Centro" is better than "Zone 1"
3. **Document**: Note why you created each zone
4. **Review periodically**: Cities grow, update your zones
5. **Consider exceptions**: Some ZIPs might need special treatment

### ❌ What you should NOT do:

1. **Repeat a postal code by accident**: having a ZIP in two zones doesn't break anything — the system considers all of them and decides by priority — but if it wasn't intentional you'll end up charging a rate you didn't expect. Duplicate only when it's on purpose.
2. **Leave gaps without a safety net**: ZIPs you don't assign can only be quoted if you have a catch-all zone for that country.
3. **Create too many zones**: it complicates management with no benefit.
4. **Change frequently**: it confuses customers and operations.

## 📊 Advanced Use Cases

### Temporary Zones
For special events or seasons:
- "Christmas Downtown Zone" (December)
- "Fair Zone" (during events)
- "Summer Beach Zone" (July-August)

### Customer Zones
For large customers with special needs:
- "VIP Customer A Zone"
- "Chain X Stores Zone"
- "Government Zone"

### Restricted Zones
Areas with special limitations:
- "Airport Zone" (special security)
- "Military Zone" (restricted access)
- "Hazardous Zone" (requires escort)

## 🔄 Zone Maintenance

### Monthly Review
- Check for new postal codes
- Review unused zones
- Update based on feedback

### Quarterly Analysis
- Evaluate profitability by zone
- Identify problem zones
- Optimize groupings

### Annual Update
- Review complete strategy
- Incorporate urban changes
- Adjust according to growth

## ❓ Common Questions

**Q: How many zones should I create?**
A: As many as your operation needs. Generally between 5-20 is manageable.

**Q: Can I change a zone later?**
A: Yes, but it will affect prices. Better plan well from the start.

**Q: What happens if a ZIP isn't in any zone?**
A: If you have a catch-all zone for that country, the shipment is quoted with it. If you don't have one, the system won't be able to calculate the price.

**Q: Can I have overlapping zones?**
A: Yes, and the system is designed to take advantage of it. The same address can fall into several zones at once, and what decides the final price is the **rate rule's priority**, not the zone. See "When several zones match" above.

## 🌐 The Catch-All Zone: coverage of an entire country

A **catch-all zone** covers an entire country without you having to list a single postal code. It's the piece that makes the system practical in countries where postal codes aren't commonly used.

### What it's for

- **Safety net**: any address in that country that doesn't fit into any specific zone is resolved with the catch-all, instead of being left without a price.
- **Quick start**: you can start quoting with just one catch-all zone and its route, and add specific zones later, without redoing anything.
- **Fewer routes**: instead of creating a route for every pair of zones, the catch-all lets you have one general fallback route and only the specific routes you actually need.

### How it's created

When creating a zone, turn on the **whole-country coverage** option. The system automatically assigns it the code it needs to function as a catch-all. You don't need to add postal codes or locations to it.

> Only one catch-all zone per country makes sense.

### How it coexists with the others

The catch-all zone **doesn't replace** your specific zones: it adds to them. If a Madrid address fits your "Madrid Centro" zone, the system will consider **both**: "Madrid Centro" and the country's catch-all.

From there, the rate rules' priority decides:

- Give a **lower priority number** (more important) to the specific routes' rates.
- Leave a **higher number** for the catch-all route's rate, which acts as a fallback.

That way, a shipment to Madrid uses the Madrid rate, and a shipment to a town you haven't classified uses the country's general rate. Without the catch-all, that second shipment wouldn't have a price.

## 🎯 Next Step

Now that you understand zones, learn about:
- [Shipping routes](/en/docs/pricing/rutas-de-envio/) between zones
- [Service levels](/en/docs/pricing/niveles-de-servicio/) you can offer
- [Calculation methods](/en/docs/pricing/metodos-de-calculo/) for each zone
- [The rate tester](/en/docs/pricing/probador-de-tarifas/), to check that your zones resolve as expected

---
*Need help setting up your zones? Contact our support team.*

