Using 3PL Billing

Billing Your Customers

This guide provides an overview of the 3PL Billing features available in ShipHero 3PL accounts. You can use this as a starting point to understand how to setup the billing rules and rates that you charge your customers for everything from storage, to adhoc tasks.

On this page


Getting Started

After signing up and connecting your carrier accounts with the on-boarding team, follow these steps to get started with ShipHero Billing.

  1. Invite your customers to join ShipHero:
    • Go to the Customers tab;
    • Tap Add customer, enter their email address;
    • An email will be sent to the email address with a link to allow the customer to signup.
  2. Set up a billing profile:
    • Go to the Billing Profiles tab;
    • Click Add billing profile..., enter a name, and hit Add.
    • Add the fees you need (see Fees).


Billing profiles

There are various types of fees that can be created either as recurring fees, per activity fee (such as a picking fee) or as a one-off fee (add hoc). Billing profiles provide a method to setup the billing rules for any given customer which is then used to generate an invoice based on the actions completed for that customer.


Recurring Fees

These fees are charged every time you tally a bill for a customer.

They are useful for any flat rate you want to charge a customer for periodically, regardless of other circumstances.
A few examples can be administrative fees for the upkeep of their account, or special services not included in other more specific fees.


Receiving

These fees apply to completed purchase orders.

Receiving by PO (Purchase Order)

This fee allows you to set a flat rate for the whole purchase order.

Some 3PLs use this technique to encourage their customers to send more products in one go, which makes it less time consuming to receive and sort the items.

Criteria: Applies to any completed PO.

Rates: The flat rate applies to each completed PO.

Receiving by item

This fee allows you to set a rates for the PO by the amount of items in it, their weight, or their volume.

You can discriminate different types of products by assigning them to different  product profiles, which you can manage in the Product Profiles tab.

Product profiles are categories for products managed in inventory, which allow you to then charge differently for products which require different amount of work to handle. For example, you can create a "heavy" profile, and charge higher rates for receiving items in that category.

The fee will be applied only to items in the PO matching its criteria, in this case, to products matching any of the product profiles configured. No product profile on the fee will match products in the PO without a product profile assigned.

Criteria:

  • Product profile: the product profile that the received product is assigned to. You can select:
    • none (matches products with no product profiles),
    • one, or
    • many (matches products with any of selected product profiles).

Rates: you can choose to set one, two, or all three of the following rates:

  • Per item: a flat rate applied to each matching item.
  • By weight: a rate applied per each ounce of matching items.
  • By volume: a rate applied per each cubic inch of matching items.


Storage

These fees apply to occupied locations or stored products.

Storing by location

This fee allows you to charge a rate on occupied locations.

Criteria:

  • Location type: the type of bin in which the product is stored. You can select:
    • one, or
    • many (matches products stored in any of selected location types).

Rates:

  • Per occupied bin per day: the rate is charged for each matching bin which had products from the customer at some point during the day, and for each day in which it did.

Storing by volume

This fee allows you to charge for stored items by the space they take up.

Criteria:

  • Location type: the type of bin in which the product is stored. You can select:
    • none (doesn't match by location type),
    • one, or
    • many (matches products stored in any of selected location types).
  • Product profile: the product profile that the stored product is assigned to. You can select:
    • none (doesn't match by product profiles),
    • one, or
    • many (matches products with any of selected product profiles).

Rates:

  • Per cubic inches per day: the rate is charged for each cubic inch for matching products, once per day.


Fulfillment

These fees apply to fulfilled orders.

Picking and packing (picking fee)

This fee is meant to be used to charge for picking and packing items.

You can use product profiles to charge for picking differently for different kinds of products; you can create a "Heavy" product profile to charge more for picking items which are burdensome

Criteria:

  • Product profile: the product profile that the picked product is assigned to. You can select:
    • none (matches by products without a product profile),
    • one, or
    • many (matches products with any of selected product profiles).

Rates:

  • First picked: the rate is applied once per set of items of the same matching product profile in the shipment.
  • Additional SKU picked: the rate is charged for each item of a distinct SKU not already charged as a first pick.
  • Picked within range: the rate is charged for each item of the matched product profiles within the range, that were neither charged as first picks or additional SKUs. Multiple ranges can be added.
  • Remainder picks: the rate is charged for any item of the matched product profiles remaining uncharged.

Pick-up from warehouse (pick-up picking fee)

This fee is applies to orders picked up by the end customer directly from the warehouse.

It works exactly like the regular  picking fee.

Label markup (shipping label fee)

The shipping label fee allows you to markup the labels with which you fulfilled orders.

You can have this fee apply to one or many carriers, or one or many shipping methods of different carriers, or one or more carriers and one or more shipping methods.

Criteria:

  • Shipping carrier: the carrier used to ship the order. You can select:
    • none, in which case you need to select a method, or
    • one, or
    • many (matches orders shipped with any of the selected carriers).
  • Shipping method: the method used to ship the order. You can select:
    • none, in which case you need to select a carrier, or
    • one, or
    • many (matches orders shipped with any of the selected methods).

Options:

  • Include base cost: whether to include the estimated cost of the label on the charge or not.

Rates:

  • Flat rate: the rate is charged for each matching shipment.
  • Percentile rate: the rate is charged based on the estimated cost of the label. Including the base cost must be on for this rate to be available.

Packaging (box fee)

This fee allows you to charge for the packaging used on shipments.

Criteria:

  • Box type: the type of package in which the products were shipped. You can select:
    • one, or
    • many (matches products stored in any of selected location types).

Rates:

  • Per occupied bin per day: the rate is charged for each matching bin which had products from the customer at some point during the day, and for each day in which it did.


Returns

This fee is applies to completed returns.

It works exactly like the  picking fee, only that it applies to items which were returned, as opposed to picked and packed for shipping.

Note: We currently do not support a fee that applies to return shipping costs.


Ad hoc

These can be thought of as  templates, since they are not tallied automatically, but can be used to quickly add manual charges to a customer or bill.

The ad hoc fees you add to the billing profile will appear as template options whenever you add an ad hoc charge.

You can add ad hoc charges like this:

  • In a customer's Customer Details page, by hitting Add ad hoc. Ad hoc charges on the customer will be added to their next bill.
  • In a bill draft's Bill Details page, by hitting Add ad hoc.

You can only add ad hoc charges before submitting the bill. Once submitted to your customer, you'll need to reopen it, moving it back to  draft, before being able to edit it, which includes adding and removing ad hoc charges and amends.


Accessing 3PL Billing

3PL Billing is available for 3PL accounts only, and can be accessed at https://3pl.shiphero.com/

Customers section

This tab contains two important things. You will notice and Add customer action button, and a list of your already handled by the billing app customers.

By clicking on Add customer, a modal will be opened, and on it, you will be able to enter the email from a new customer you want to send the invite to start managing under billing. Once the requested customer accepts that email invite, it will start been listed, and you should go to the customer details page to config their billing settings.

Once you go to a specific customer details page, you will be able to perform several actions, and also this view will display a lot of info related to your business relationship throw billing app for that customer.

The most important first step once you added a new customer, it's to configure their Billing setting. There is an action button for that, that will display a drawer, from where you can configure most important customer billing stuff. Some of these configurations are:

  • Billing profile
  • Billing frequency (could be monthly or weekly)
  • Billing start day
  • Label charges settings
  • Select customers paid settings
  • Decide to show or not bills for this customer (if not, the Bills tab will NOT be showed for a customer account logged in billing app. Export tab neither)
    • If you choose to show the bills, you can also be able to set up to which customer email will be sent.

Billing profiles section

This tab will let you create, archive/unarchive and go to the details page for every Billing profile you had created. A Billing profile is a set of rules that you create for charging in different ways to specific customers.

You will be able to assign one or multiple customers to the same billing profile, but once you assigned a profile to a customer, you won´t be able to unassign it. If you want to charge a customer in a different way, you will need to go to other billing profile and assign it to this new profile.

Once you have the billing profile created, by going to the profile details page, you will notice that you will be able to create different types of fees and that they are ordered in the following structure/categories:

  • Recurring
  • Receiving
    • By PO fee
    • By Item fee
  • Storage
    • By Location fee
    • By Volume fee
  • Shipments
    • By Box fee
    • By Shipping label fee
    • Picking fee
  • Returns
  • Ad hoc fee

* Each fee has his specific behavior and way of charge, and some of them will have defaults that can be pre-selected.

Bills section

This tab will let you display and go to the details of the bills generated for your customers. The bills will be auto-generated from the billing app by using the customers billing settings and mostly the configured periods.

The bill will mostly generate their charges according to the fees configurated for the billing profile, and the billables occurred between the calculated billing period.

A bill also could be altered later before to be sent to the customer by different ways, like creating amend changes under the bill details, or by performing charges reconciliations, under the billing app Reconcile tab.

A bill can have different statuses:

  • Queued
  • Tallying
  • Draft
  • Submitted
  • Paid
  • Closed

* Between different bill statuses, you will have different actions available to perform related to that bill, e.g.: Recalculate, Export, Submit, etc.

* You will be able to Export your Bill as CSV. This task will demand some time, and once done the 3PL or customer will be notified by an email. Once done, the bills will be available under the billing app Exports tab ( http://3pl.shiphero.com/threepl/exported-bills-list)