How to set up shipping charges?

There are multiple ways for you to set up and charge shipping costs to customers. In this article, we will show you where to set it up and help pick the best option for your marketplace. 

  • Select Setting tabs, then Fulfilment.
    • Click Shipping

      • You will see multiple ways for you to set up shipping charges. Please note your selection will dictate not only who sets the shipping charges (you or your vendors), but also how the money collected for shipping will be split between you and your vendors.

      • These 3 options are available to the Operator on all Shopify plans. 

        • No shipping charge - you set shipping charges yourself and keep the entire amount. For example, if the customer pays $10 for shipping, you receive $10 the vendor/s fulfilling the order receive $0.
        • Flat shipping charge - flat the amount each vendor receives per order shipped. For example, if you set this to be $2, then regardless of how much the customers pays for the shipping, each vendor fulfilling the order receives $2 for shipping.
        • Equal shipping charge split - shipping amount paid by the customer is split equally between vendors. For example, the customer pays $10 for shipping and buys two products from two different vendors, each vendor receives $5 for shipping and you receive $0.

      • The below option is only available on the Shopify Advance Plan (you may be able to ask Shopify to open their carrier services API for an extra charge if not on Shopify Advance plan)
        • Vendor manage shipping charges - your vendors set shipping charges themselves and order is placed, each one of them receives the shipping amount they set.
        • Once you opt for this option, the below will open up for you can select the options as per your marketplace needs.
          1. Enable vendors to set up their own shipping rules.
            1. You can allow all your vendors or some selected vendors to set up their own shipping charge from this setting:
          2. Charge shipping from Customers or not
            1. You have an option to whether charge shipping rates from your customers or you pay shipping rates to your vendors In case you do not want your customers to pay the shipping  charge, tick the box as mentioned below:
          3. Cumulative shipping charges
            1. As the marketplace operator had enabled "Allow vendors to charge cumulative shipping charges", it will charge the maximum shipping amount among three line-items.

              Note: All three line-items belong to the same vendor.

              Lineitem 1: Quantity Shipping cost - 1 x 15 - 15

              Lineitem 2: Quantity Shipping cost - 2 x 15 - 30

              Lineitem 3: Quantity * Shipping cost - 1 x 15 - 15

              So because cumulative shipping charges are enabled for the vendor, the system will only charge maximum shipping cost i.e, 30 for Line-item 2. The same can be seen in the screenshot.



Advance Shipping Functionality

In order to set up a vendor managed shipping, you as an operator will have to create a shipping band from The manage shipping functionalities.


1. Shipping Bands:

The shipping Band is the option that will be visible to your customers, see below steps to create a band. 

        1. Login as an operator
        2. Click on settings
        3. Click on Fulfilments
        4. Click on the shipping
        5. Under shipping terms, click on the drop-down Vendor Managed shipping
        6. Click on Create Band




Once the band is created, you and your vendors can use these bands to further create shipping rules and offers.

2. Shipping Rules:

This can be created by both, Operator and vendor. Shipping rules can be created on the basis of Destination or Product. The vendor or operator can mark the shipping as free or can assign a fixed shipping cost to it.

        1. Login as an operator/vendor
        2. Click on the settings tab
        3. Click on Fulfilments
        4. Click on advance shipping
        5. Under manage rules, click on Add new rules
        6. This will open a new box where you will be asked to select a shipping band
        7. Select shipping rule condition (This can be either Product or a destination)
        8. Add Description for the rule
        9. Click on the drop-down to select free or fixed shipping

 

3. Shipping Offers:
Shipping offers allows you and your vendors to set up shipping using the product, destination, and offer condition. You can create multiple offers using a band. This is an extension of shipping rules. Steps to create shipping Offers:

        1. Login as an operator/vendor
        2. Click on the settings tab
        3. Click on Fulfilments
        4. Click on advance shipping
        5. Under manage Offers, click on Add new offers
        6. This will open a new box where you will be asked to select a shipping band
        7. Select destination, product, and offer condition for which you want to set up the shipping charge
        8. Add Description for the offer
        9. Click on the drop-down to select free or fixed shipping (Shipping you want to charge from your customer)


The offer condition is based on

*Product Quantity

*Product price

*Order value by vendor

 

Got more questions? Use the chatbox on the right to get in touch with us or email [email protected]