What is Vendor Managed Shipping and how do you set it up?

In this article, we will explain vendor-managed shipping which is a part of the Advance shipping functionality, and also run through how you can set it up.

This functionality provides users with an option to set up shipping costs using the Marketcube app which can be used as a third-party calculated shipping rate.

Operators who are on Advance Shopify Plan can access our Vendor Managed Shipping Functionality as Shopify allows third Party shipping rates only on its Advance Plan.
In order to use this Functionality on any other Shopify plan, you can contact the Shopify support team and can ask them to enable this option for you after paying some extra charges.


In order to use vendor managed Shipping, the Operator needs to follow the below steps:

1. Log in to the Operator's app.


2. Click on the Settings tab.

settings-1


3. Click on Show under the Fulfilments pannel >> Click on Shipping.
Shipping 1


5. From the dropdown, click on Vendor Manage shipping charges.Shipping 2

This option will open more settings using which the Operator can have a look at and decide how he wants his vendors to set up their own shipping rates.


We will discuss each option in detail below as shown by screenshots:


6. Allowing vendors to set up shipping.

shipppping
Using this option, the operator can either:


* Allow all his vendors the ability to add and update shipping Rules and Offers (We will talk about Rules and offers in detail in our next article).

* Allow only selected vendors the ability to add and update shipping Rules and Offers.

     i.) In order to allow the vendors to update shipping, the operator needs to click Allow selected vendors. 

    ii.) Need to type at least the first three characters of the vendor's brand name.

     iii.) The operator needs to select the boxes from the available options.


7. Charging shipping from customers or the operator pays the vendor for shipping.Shipping 5-1

Operators have an option to whether charge shipping rates from their customers or pay shipping rates to their vendors themself. 

If the operators do not want to charge any shipping rates to their customers they can tick the box highlighted above. This would mean customers will not pay any shipping charge but the operator will have to pay that amount to their vendor for shipping the product.


8. Cumulative Shipping Charge:

Cummulative shipping

This setting aggregates the shipping charge on the basis of vendors. This will allow your vendors to charge shipping per product wise and not on the basis of product quantity. An operator can allow all their vendors to charge cumulative shipping or can allow specific vendors to be able to do this.



To make sense of this all, let us use a scenario:

Rob is a vendor for an Operator who has cumulated the shipping.
Rob offers 2 Products-  Lemon Grass and Almonds
Rob wants to charge $20 to ship Lemongrass and $10 to ship Almonds.
A customer placed an order for Lemon Grass (Quantity 2) and Almonds (1 Quantity)

If the shipping is not cumulated for this vendor, the customer would  pay shipping as 
Lemon Grass->                                                              20*2=$40
Almond                                                                         10*1= $10
Total shipping paid by customer --------------------->               $50

But, if the shipping is accumulated, the customer will pay the shipping on the basis of the product and not on the basis of the product quantity. So, irrespective of the product quantity in a line item, here, for lemongrass customers will pay only $20 as shipping.

Lemon Grass ( 2 quantity but shipping is aggregated)  = $20
Almond                                                                                  =$10
Total shipping paid by customer --------------------->               $30

                                                                                                                                                                             

9. Hide/show shipping description from customers at the point of checkout:
Whenever the operator creates any Shipping Band or whenever their vendors create any rules and offers using those bands, they add a certain description for that band/rule/offer which describes the shipping charge.
Operators have the ability to hide or show the description from the end customers at the point of checkout. By Checking the highlighted box below they can show the description and when it is unchecked, customers will not see the description.

Shipping 7

Shipping 8


10. Aggregate Shipping Charges:


shippping

This option provides operators with an ability to charge aggregate shipping for selected or all shipping bands, rules, and offers. This will allow shipping to be charged per product and not per product quantity.

* Operators can allow aggregate shipping on all types of shipping. This will charge shipping by aggregating all the shipping types on the basis of the product.

Shipping 10

* Using this functionality, Operators can aggregate some specific shipping types.shipppping-1

For Example, 
Scenario 1:
As an operator, Ronnie sells 3 Products:
i.) Shea Butter
ii.) Clove Oil
iii.) Almond Oil
In order to ship these products, the operator created a shipping rule to charge $10 to ship Shea butter, $15 to ship Clove Oil, and $20 to ship Almond oil.

The customer placed an order for these products:
 Shea Butter- 2 Quantity
 Clove Oil- 2 Quantity
 Almond Oil- 3 Quantity

If the operator has aggregated all the shipping rules, then the customer will pay shipping for the products and not for product quantity. So shipping, in this case, will not be
(10*2= $20) + (15*2= $30 )+  (20*3= $60)= $110
But, it will be
$10 for shea butters's 2 Quantity
$15 for clove oil's 2 quantity
$20 for almond oil's 3 quantity
So customer in this case will pay only $(10+15+20)= $45 as shipping cost



11. After setting up all the details, click on Submit button to save these settings.


 


Got more questions? Use the chat on your right or email support@marketcube.io to get in touch.