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How to invoice vendors for shipping costs
How to invoice vendors for shipping costs
Updated over 2 months ago

Introduction

In this article, we describe how a marketplace can invoice vendors for shipping costs.

Marketplace pays vendors for shipping

You can agree with your vendors for them to ship orders at their own rates and pay them a set cost for each shipment.

👉 Important note:
- Vendor must have the option "Invoice Shipping Costs" under the "Payment Setup" tab, in the vendor contact settings in Onport, enabled.

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Rates set up in Onport (Shopify Only)

Requirements

  • Live carrier rates must be enabled in Shopify for Onport to pass rates to the Marketplace Shopify Store.

  • Checkout rates must be set up in Onport - Shipping Rates.

  • Vendors ship orders on their own rates outside of Onport

  • Marketplace pays vendors for shipping:

    • The same amount the end customer has paid at checkout;

    • A fixed amount - Shipping Rates;

Rates set up in Marketplace

Requirements

  • Checkout rates must be set up in the Marketplace's Store;

  • Vendors ship orders on their own rates outside of Onport

  • Marketplace pays vendors for shipping:

    • The same amount the end customer has paid at checkout

    • A fixed amount - based on the Vendor Shipping Rate selected;

Marketplace retains shipping income

Whereas your rates are set up in Onport or your e-commerce platform, the shipping income can be retained by you, the Marketplace, therefore no shipping income is paid out to vendors.


👉 Important note:
- Vendor must have the option "Invoice Shipping Costs" under the "Payment Setup" tab, in the vendor contact settings in Onport, disabled.

Image-2022-12-26-at-6.12.10-PM

Rates set up in Onport (Shopify only)

Requirements

Step 1

Set up Checkout rates options in Onport

  • Live carrier rates from Shipping integration

  • Fixed Price per shipment

  • Fixed price per item

  • Weight or price-based

  • Advanced rules (ie. Zone shipping)

  • Can be set up at a cart level or vendor level

Step2

Set up Vendor shipping rates for labels in Onport

  • Provide labels to vendors from Shipping Integration

Step 3

Marketplace retains shipping income obtained at checkout

  • The Marketplace doesn’t pay vendors for shipping costs

Rates set up in the Marketplace's e-commerce platform

Requirements

  • Rates must be set up on the Marketplace platform

  • Rates will only apply to cart level

Step 1

Set up Checkout rates options on the Marketplace platform

  • Rates will only apply at the cart level

Step2

Set up Vendor shipping rates for labels in Onport

  • Provide labels to vendors from Shipping Integration

Step 3

Marketplace retains shipping income obtained at checkout

  • The Marketplace doesn’t pay vendors for shipping costs

Marketplace charges Vendor For shipping

It is possible to charge your vendors for shipping, especially when as a Marketplace, you provide shipping labels. Whether it is a pre-defined fixed rate or the value paid by your customer, the vendor will be invoiced to compensate for this cost.

👉 Important note:
- Vendor must have the option "Invoice Shipping Costs" under the "Payment Setup" tab, in the vendor contact settings in Onport, enabled.

Image-2022-12-26-at-6.12.10-PM

Rates set up in Onport (Shopify only)

Requirements

Step 1

Set up Checkout rates options in Onport

  • Live carrier rates from Shipping integration

  • Fixed Price per shipment

  • Fixed price per item

  • Weight or price-based

  • Advanced rules (ie. Zone shipping)

  • Can be set up at a cart level or vendor level

Step2

Set up Vendor shipping rates for labels in Onport

  • Provide labels to vendors from Shipping Integration

Step 3

In the Shipping tab, make sure to enable "USE VENDOR SHIPPING RATES” to charge the vendor for the price of the label or a fixed price.

Rates set up in the Marketplace's e-commerce platform

Requirements

  • Rates must be set up on the Marketplace platform

  • Rates will only apply to cart-level

Step 1

Set up Checkout rates options on the Marketplace platform

  • Rates will only apply at the cart level

Step2

Set up Vendor shipping rates for labels in Onport

  • Provide labels to vendors from Shipping Integration

Step 3

In the Shipping tab, make sure to enable “USE SAME SHIPPING RATE PAID BY CUSTOMER” to guarantee vendor covers the shipping value covered by the customer.

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