3PL Billing Profiles are the easiest way to ensure you are billing your clients all of the necessary fees and rates during every billing cycle. It takes the guess work out of billing as you can set up and apply the profile once. It will then work for every billing cycle.
This article includes an overview of all available billing fees, as well as definitions for each and some examples of how and why you would want to apply them.
Billing Fee Types
Additional 3PL Billing Resources
Billing Fee Types
Billing profiles can include some or all of the following fees. Fees are set up to cover the most common charges you bill your customers for so that you can capture as many of these fees as possible with little variation.
Recurring Fees
These are fees that are billed repeatedly at regular intervals—such as daily, weekly, monthly or once each billing cycle. These fees will apply every time a bill is generated for the customer.
Some examples of recurring fees include, but are not limited to:
- Monthly connection fee
- Customer support fee
- Contract fee
This is the Recurring fee page. To add a fee to the billing profile, you will need to fill in the following fields:
- Charge name: This field can be filled in with any name that make sense for you and your teams.
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Charge frequency:
- Choose between:
- Charge periodically: Choosing to charge periodically will cause the charge to be added to the client's bill per selected event: per day, per week or per month.
- Charge not periodically: Choosing to charge not periodically will cause the charge to be added to the client's bill at the end of each billing period as a single line item.
- Choose between:
Receiving Fees
These fees are applied when receiving product into the warehouse. They can be applied by Purchase Order (PO) or by SKU.
Use Case: Applying receiving fees by SKU can help to offset costs for receiving certain items, like fragile products, oversized products or temperature controlled products.
Storage Fees
A storage fee is a charge incurred for keeping goods or items in the warehouse. This fee covers the cost of space, utilities, handling, and security needed to store the items safely.
Storage fees are typically charged based on factors like:
- Amount of space used (measured in square footage or cubic volume)
- Duration of storage
- Type of goods being stored (optional)
ShipHero also supports the following storage fees:
- By product profile: For example, fee for storing products that are fragile, hazardous, or require temperature control.
- By location type: For example, the storage fee for a pallet can be different from the fee for a shelf.
Shipment Fees
This includes picking fees, as well as box fees, label fees, and order fees.
Box Fees: Apply per shipment (including for wholesale orders) and it will charge for each box used. You can set a flat rate per box or include the base cost and add on a mark-up by percentage or flat rate.
Box Fees can also include a profile so that you can bill orders with unique profiles differently. Profiles can be set by clicking HERE.
Box Fee Examples:
- An order was shipped using 2 large wholesale boxes. You can charge a flat rate of $1.00 per box, which will be a $2 fee on the order.
- Or you can have the fee look at the cost per box and mark it up by 10%. In this case, we will take the base cost of $1.00 per box and add a 10% fee of 0.10 per box - making the total fee for this order $2.20.
Box Fees can be set by logging into ShipHero and navigating to Shipping > Boxes.
Picking Fees
These fees are based on picks (apply to standard orders and wholesale orders).
- Pick fees can be based on warehouse/order profile.
- Pick fees for wholesale orders may be different than pick fees for standard orders
- Pick fees can also be based on product profiles. For example, fees based on fragile products, oversized products, etc.
Example of an applied pick fee:
Order Fees
This fee applies to the total order.
They can be a flat rate fee for all orders or a fee based on a percentage of the subtotal of the order.
NOTE: The order subtotal does not include taxes or shipping costs.
Order fees can be different based on warehouse/order profile and/or order tags. You can view order tags on the order detail page.
Return Fees
These are fees that apply to return orders, based on items or label costs
- The items fee works similarly to the picking one - you can apply the fee to all products or certain products based on the product profile.
- Fees can also be applied to return labels, so you can easily charge your client for the label cost.
Ad Hoc Fees
These are one-time fees applied to the bill. For more details on how to create Ad Hoc charges, please click HERE.
One very useful use case for ad hoc charges is through work orders - you can add ad hoc charges to a work order and once the work order is complete the fees will be added to the customer’s bill as ad hoc charges.
NOTE: For more details on 3PL Billing & Work Orders, click HERE.
Additional 3PL Billing Resources
There are many options in ShipHero for 3PL Billing. Below are links to additional articles that take you through the different steps and options.