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How to Use RateShop+ in ShipHero

ShipHero's RateShop+ feature is an advanced tool that gives you much greater control and customization over how your orders are rate-shopped to find the cheapest, most effective shipping method. Instead of just picking the absolute lowest-cost method from all available carriers, you can fine-tune the comparison to align with your business goals, carrier relationships, and customer expectations.

Customize which methods are available for ground services or international. The options are endless.

Key Customization Features

The RateShop+ feature allows for granular control through the following settings:

Feature Description Example Benefit
Define Included Methods Choose exactly which carrier services (e.g., USPS Ground Advantage, FedEx Express Saver) should be included in the calculation. Exclude carrier services that you rarely use or have poor performance with.
Set Rating Factors (Example Below) Apply a cost multiplier (factor) to a carrier service's quoted rate before it's compared to others. If you get a 5% cashback bonus on a specific carrier, you can set a factor of 0.95 for that service to make it appear cheaper in the calculation, effectively prioritizing it.
Set Maximum Delivery Time Set a maximum number of delivery days for each carrier service. Only consider a particular carrier if its estimated delivery time is 3 days or less, ensuring timely delivery while still looking for the cheapest rate.

Notes and Limitations

  • The RateShop+ logic and rating factors are only applied during the label printing process.
  • They do not affect the initial shipping quotes shown to the end customer or the rates displayed when using the Calculate Shipping Rates button during packing.
  • Note for 3PLs: Depending on how your clients' billing settings are enabled, RateShop+ will include the markup cost for your clients when generating labels. For more information on these settings, please visit the following article.
  • 3PL Client Choice: 3PLs can decide whether they want to use the RateShop+ method for all clients or specific clients.

Setting Up RateShop+

The process to enable and configure RateShop+ involves two primary steps: Creating a custom RateShop+ Method and assigning it to orders.

Things to consider:

  • When naming the RateShop+ method, do not name the method "Cheapest" alone; it needs to include other descriptive words.
  • When selecting carriers, you must select an actual carrier. Do not select any of the shipping methods named "Cheapest...". These methods will be ignored by the system when it rate-shops during the shipping step.

Creating a RateShop+ Method

  1. Go to the RateShop+ page.

    • Manual Navigation: Go to the shipping.shiphero.com platform, select the Settings button from your user menu, then open the Shipping menu, and click RateShop+.
    1a. Manual Navigation Part 1: 1b. Manual Navigation Part 2:
    Image of Manual Navigation Part 1
    Image of Manual Navigation Part 2
  2. Click the Create Method button and give your new RateShop+ profile a clear name (e.g., "Cheapest Ground 3-Day Max" or "Prioritize USPS with Discount").
  3. Select the specific Carriers and Carrier Methods you want to include in this custom rate-shopping calculation.

    Image of Selecting Carriers & Methods

  4. On the next screen, you can set the Rating Factors and Maximum Delivery Time (in days) for each of the selected Carrier Methods.

    4a. Setting Rating Factors: 4b. Setting Maximum Delivery Times:
    Image of Setting Rating Factors
    Image of Setting Maximum Delivery Times
  5. Save your new RateShop+ method.

Using the RateShop+ Method on Orders

To set a RateShop+ cheapest method on an order, select Cheapest as the "Carrier" and the RateShop+ method as the "Method." You can also automate selecting a RateShop+ profile on an order through Mapping Shipping Methods and Automation Rules.

Image of Example of setting a RateShop+ shipping method
Image of Example of mapping
Example of setting a RateShop+ shipping method for an order or mapping

Rating Factors Explained

The Rating Factor is the core mathematical tool in RateShop+ that allows you to influence the rate-shopping decision without changing the actual label cost.

Rating Factor Effect on Carrier Rate RateShop+ Priority Why You'd Use It
1.00 No adjustment (Rate = Cost) Neutral For carriers with no special financial incentives.
Below 1.00 (i.e., 0.95) Makes the rate appear cheaper in the calculation. Prioritized To account for rebates, volume discounts, or cashback you receive later, making the carrier the true "cheapest" option for your business.
Above 1.00 (i.e., 1.05) Makes the rate appear more expensive in the calculation. De-prioritized To push the system away from carriers that often have high accessorial fees or poor delivery times.

The RateShop+ Calculation

RateShop+ doesn't look at the Initial Quoted Rate to determine the winner; it looks at the Adjusted Rate.

Adjusted Rate = Initial Quoted Rate × Rating Factor

Example Scenario

Imagine you have an order that qualifies for two different carrier services, both offering competitive rates. You want to prioritize Carrier B because they offer you a 5% cashback bonus at the end of the month, even though their initial quote is slightly higher than Carrier A.

Carrier Service Initial Quoted Rate (Actual Cost) Desired Rating Factor
Carrier A (Standard Ground) $10.00 1.00 (No adjustment)
Carrier B (Preferred Ground) $10.40 0.95 (To reflect the 5% cashback/discount)

The RateShop+ Calculation

Carrier Service Calculation Adjusted Rate
Carrier A $10.00 × 1.00 $10.00
Carrier B $10.40 × 0.95 $9.88

The Outcome

  • Without RateShop+: Carrier A ($10.00) is the absolute cheapest, and the system would select it.
  • With RateShop+: After applying the Rating Factor, the system sees the adjusted cost for Carrier B as $9.88.
  • Result: RateShop+ selects Carrier B because its Adjusted Rate ($9.88) is now mathematically the lowest compared to Carrier A's Adjusted Rate ($10.00).

PLEASE NOTE:The actual label cost charged to your account remains $10.40 for Carrier B. The Rating Factor is only an internal adjustment made before the rate-shopping comparison to strategically influence the selection.

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