How to Set Up a 3rd Party Billing Shipping Account

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 you can 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

NOTE: 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, it's essential to be aware of certain limitations and requirements:

Using a 3rd Party Shipping 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. 

1. Open the order details page.
2. Scroll to the Shipments Info section and click the Pencil Icon.
3. Enter the third-party shipping information in the pop-up:
   • 3rd Party Shipper Number
   • 3rd Party Shipper Zip Code
   • 3rd Party Shipper Country 
4. Click Update to save your changes.

Connecting a 3rd-Party Billing Account at the Carrier Account Level

This section covers the general information about connecting the third-party billing account to the primary carrier account in the Shipping > Carriers page. This method is only supported for UPS and FedEx. We recommend using this method 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 has a lot of flexibility when it comes to what can be billed to a third party account. In this section, we will show how to add a 3rd Party billing account with UPS and the different configuration options available.

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:

There are four options on how to configure billing to third-party accounts with UPS.

• 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 third-party accounts. 

Step-by-Step Instructions:

1. Go to the Shipping > Carriers page and select Connect Carrier. Then, select UPS from the list.
2. Select the new profile you created and the warehouse you are shipping from with this account.
3. Enter YOUR account number in the required field. 
4. The configuration you need will determine how you add the 3rd Party Billing information:
   1. Shipping fees only: Add the 3rd Party Billing information during the connection process and do not enable DDP.
   2. Duty and Taxes only: You will need to add the information after the initial connection is made, and enter 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 the shipping.
   3. 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.
   4. Shipping and Duties/Taxes charge to separate 3rd party billing accounts: The 3rd Party Shipping account can be added during the connection or after the initial connection is made. The 3rd Party Billing account for duties and taxes needs to 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 the duties and taxes to the account connected to the shipping account. 
5. Select Connect.

3rd Party Billing fields during the connection	3rd Party Billling fields in the Account Settings

Connecting a 3rd Party Billing Account with FedEx

To connect a 3rd Party Billing account to FedEx, follow the steps below. 

Required Information:

• Third-party shipper account number.

Configuration Options:

There are four options on how to configure billing to third-party accounts with FedEx.

• Label (Shipping) cost only Enter 3rd party billing information into the 3rd Party Billing number.
• 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 third-party accounts. 

Step-by-Step Instructions:

1. Go to the Shipping > Carriers page and select Connect Carrier. Then, select FedEx from the list.
2. Select the new profile you created and the warehouse you are shipping from with this account.
3. Enter YOUR Account and Meter number in the required field.

4. The configuration you need will determine how you add the 3rd Party Billing information:

   1. Shipping fees only: Add the 3rd Party Billing information to the Third Party Billing Number.
   2. Duty and Taxes only: Add the 3rd party billing information into the 3rd Party Billing Number for Taxes and Duties field.
   3. Shipping and Duties/Taxes to the same 3rd Party Billing account: Add the 3rd Party Billing information to both fields.
   4. Shipping and Duties/Taxes charge to separate 3rd party billing accounts: Add the respective 3rd party billing account infomration into the respective fields.

   Please Note: When a third party billing account is added into the duties and taxes field DDP is automatically applied to orders assigned that profile. To disable that setting you must select DDU at the order level.

5. Click Connect.  

Troubleshooting Common Third-Party Shipping Errors

Encountering issues with third-party shipping accounts can be frustrating. Here are some common errors and steps to troubleshoot them:

"Invalid Shipper Number" or "Account Not Found"

• Check Account Number: Double-check that the third-party shipper account number is entered correctly in ShipHero. Even a single-digit error can cause this.
• Verify Carrier Account Status: Confirm with the carrier (UPS, FedEx, etc.) that the third-party account is active and in good standing.
• Account Type: Ensure the account number provided is a valid billing account number, not just a customer ID.

"Billing Information Mismatch"

• Address Details: For UPS, ensure the third-party shipper's zip code and country precisely match the address associated with the account.
• Authorization: For both UPS and FedEx, confirm that the third-party account has authorized your ShipHero account (or the specific profile) to bill against it. This often requires direct communication with the carrier.

Rates Not Visible

• Carrier Authorization: As mentioned above, rates for third-party accounts are often hidden by default. You must contact UPS or FedEx directly to authorize ShipHero to view their rates. Once authorized, contact ShipHero Support to enable this in your account.
• Service Level: Ensure the selected shipping service level is supported by the third-party account.

Labels Not Generating

• Previous Errors: Check for any prior error messages during the label generation process. Address those first.
• Profile Assignment: Verify that the order is correctly assigned to the profile linked to the third-party account.
• Carrier System Downtime: Occasionally, carrier systems may experience downtime. Check the carrier's status page for any outages.

"Invalid Endorsement ID" (if applicable)

• Correct ID: Confirm the endorsement ID is accurately entered and is valid for the third-party account.
• Carrier Specifics: Some carriers have strict rules about where and how endorsement IDs can be used. Consult your carrier representative.

General Troubleshooting Steps

1. Refresh Data: Sometimes, simply refreshing the order page or carrier connection can resolve minor glitches.
2. Clear Cache: Clear your browser's cache and cookies.
3. Contact ShipHero Support: If you've tried the above steps and are still facing issues, provide ShipHero Support with the order number, carrier, and a detailed description of the error message you're receiving.