Setting up a third-party billing carrier account in ShipHero allows you to charge shipping labels to a different account than the main account used for fulfillment. This is particularly useful when you want to leverage your negotiated rates with carriers, such as when fulfilling wholesale orders for a retailer or working with a 3PL client.
This article explains how to set up third-party billing for different carrier accounts and how to apply it to an order.
- Notes and Considerations for Third-Party Billing
- Using a 3rd Party Billing Account for a Single Order
- Connecting a 3rd Party Billing Account at the Carrier Account Level
- Connecting a 3rd Party Billing Account to UPS
- Connecting a 3rd Party Billing Account to FedEx
- Troubleshooting Common Third-Party Shipping Errors
ShipHero currently supports third-party billing for UPS and FedEx. Support for other major carriers like USPS and DHL, as well as regional providers, is not currently available. Other carriers will need to be directly connected to ShipHero and can be applied to specific orders using warehouse profiles. For more information, visit How to Connect Multiple Shipping Accounts to a Single Carrier.
Notes and Considerations for Third-Party Billing
While third-party shipping offers significant benefits, be aware of the following limitations and requirements:
| Category | Details |
|---|---|
| Multi-Warehouse | If multi-warehouse is enabled, you must connect the third-party shipping account to each warehouse separately. |
| Carrier-Specific | UPS and FedEx have their own policies and technical requirements for third-party billing. Always confirm with the specific carrier for the most accurate and up-to-date information. |
| Rate Visibility | Viewing third-party account rates in ShipHero's quoting tools often requires explicit authorization from the carrier. You must do this for both UPS and FedEx to see third-party billing rates. |
| Service Level | Some specialized or discounted service levels may not be available for third-party billing, or may have specific restrictions. |
| Account Verification | Carriers may periodically verify the validity of third-party accounts, which could temporarily affect label generation if discrepancies are found. |
| Invoicing | While ShipHero facilitates label generation, invoices for third-party shipments come directly from the carrier to the third-party account holder. |
| International Shipping | International third-party shipping may have additional requirements, such as specific customs documentation or duties/taxes billing options. |
| Account Status | The third-party account must remain in good standing with the carrier. Past-due invoices can prevent label generation. |
Using a 3rd Party Billing Account for a Single Order
This section explains how to manually add a third-party billing carrier account to a single order on the order details page.
Important Notes
This option is currently supported for UPS ONLY, and a UPS shipping method must be selected before the system will allow you to enter the third-party billing information for the order.
- Open the order details page.
- Scroll to the Shipments Info section and click the Pencil Icon.
- Enter the third-party shipping information in the pop-up:
- 3rd Party Shipper Number
- 3rd Party Shipper Zip Code
- 3rd Party Shipper Country
- Click Update to save your changes.
Connecting a 3rd Party Billing Account at the Carrier Account Level
This section covers how to connect a third-party billing account to the primary carrier account from the Shipping > Carriers page. This method is only supported for UPS and FedEx and is recommended when third-party billing is needed for multiple orders.
Requirement before connecting a 3rd party billing account:
- Create a unique warehouse profile to connect the main shipping account to. This profile will be used to assign orders to the third-party billing account. Visit this article to learn more about How to Use Warehouse Profiles.
- Note for 3PLs: Create the warehouse profile at the client account level; this allows it to be assigned to orders using automation rules later.
Connecting a 3rd Party Billing Account to UPS
UPS offers flexibility in what can be billed to a third-party account. Below are the setup steps and configuration options.
Required Information:
- Third-party shipper account number.
- Third-party shipper zip code.
- Third-party shipper country. (Note: Puerto Rico is considered a country for this purpose.)
Configuration Options:
- Label (Shipping) cost only: Enter 3rd party billing information into the 3rd Party Billing (Shipping Charges) fields and ensure the DDP flag is not enabled.
- Duty and tax costs only (for international shipments).
- Both label and duty costs to the same 3rd party account.
- Label and duty costs billed to separate third-party accounts.
Step-by-Step Instructions:
- Go to the Shipping > Carriers page and select Connect Carrier. Then select UPS from the list.
- Select the new profile you created and the warehouse you are shipping from with this account.
- Enter your account number in the required field.
- Choose the configuration that matches your billing setup:
- Shipping fees only: Add the 3rd Party Billing information during the connection process and do not enable DDP.
- Duty and Taxes only: Add the information after the initial connection is made, entering the 3rd party billing information into the 3rd Party Billing duties and taxes fields. Do not enable the DDP setting at the carrier level, as this will charge the same account that is being billed for shipping.
- Shipping and Duties/Taxes to the same 3rd Party Billing account: Add the 3rd Party Billing information during the connection process and enable the DDP setting. There is no need to duplicate the information from the 3rd Party Billing (Shipping Charges) fields to the 3rd Party Billing (Duties and Taxes) fields.
- Shipping and Duties/Taxes charged to separate 3rd party billing accounts: The 3rd Party Shipping account can be added during the connection or after the initial connection. The 3rd Party Billing account for duties and taxes must be added after the initial connection. Do not enable the DDP setting at the carrier level when entering a different account into the 3rd Party Billing Duties and Taxes fields, as that will charge duties and taxes to the shipping account instead.
- Select Connect.