Landed Costs

Sara Silva
Sara Silva
  • Updated


On certain occasions, you may come across additional expenses such as shipping costs associated with an order, packaging, etc. For such cases, we have a feature called Landed Costs.

This article will guide you on how to set up Landed Costs and how to properly reconcile them with your vendors.

The marketplace can either absorb the costs or pay the vendor for any extra expenses.

Essentially there are two options:

1. The marketplace can include these expenses in the commission rate agreed with the vendor.

2. Or the marketplace can create Landed Costs in their Onport account under Setup > Landed costs. 

Setting up the Landed Costs

To create the Landed Cost these are the steps:

1. Go to Setup > Landed Costs > Create New Landed Costs

2. Add the name and the amount you want to apply in the "Value" field.

❗️Adding a positive amount will increase the payout - this refers to the processing fees that the Dropship Provider incurs and that need to be paid by the marketplace.

❗️Adding a negative amount will decrease the payout - this refers to the marketplace's handling fees that need to be debited to the vendor.

3. Choose the Country scope

4. Include or exclude dropship providers

If a dropship provider is included, the landed costs will be automatically added to that vendor's settings under Contacts > Dropship provider > Payment setup tab > Managing landed costs

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Once an order is invoiced all the information will be displayed in the Balance tab under the dropship provider settings.

🔎 For further information on how to manually adjust an invoice, you can look into this article.

Important notes

  • The country codes should be added in capital letters.
  • If you have a UK vendor and the order will be shipped to the UK, you'll need to select the option "Domestic" - in this scenario, using "Selected" or "All" wouldn't work.
  • The same vendor shouldn't be associated with 2 different landed costs as the system will sum both amounts you have set up.
    For example: you have one landed cost associated with vendor A to charge/send $5. Then you create a second landed cost to charge/send $10 and you also associate vendor A to it. The result will be the sum of the two amounts, so the vendor will pay/receive $15.

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