Third-party billing allows businesses to charge shipping carrier costs to third parties rather than the sender or receiver. If you are integrating your UPS account with a third party, you can easily bill your UPS shipments to your account or even the third party.
The only condition is that the third party should have a valid UPS account number and should agree to pay the charges.
This article will help you understand how you can bill your UPS shipments to a third-party account.
What is a third-party shipper?
UPS offers several options to manage shipping costs to decide who pays for the shipment. It is either the shipper or the receiver who is automatically billed. A third-party biller is one with a valid UPS account number and is accountable for receiving the shipment irrespective of any location with a limited charge applied.
The third-party billing rate is applied to the entire shipping charge, which also includes the base rate as well as the applicable accessorial charge.
What is the need to Bill UPS Shipments to a third party?
The need to Bill UPS Shipments to a third party arises in different scenarios where the party responsible for paying shipping costs is different from the sender and receiver. Some of the common reasons are:
- Vendor or Supplier Arrangements
In some scenarios, businesses ship goods to customers but want their vendor or supplier to pay the shipping charges.
- Cost-Sharing in Business Partnerships
When multiple companies are involved in a business project, third-party billing allows one party to handle the shipping fees.
- Client or Customer Responsibility
Some businesses offer to ship the items to the customer but allow the customer to cover the shipping charges by billing their UPS account.
- Logistics and Fulfillment services
Companies offering fulfillment services may handle shipping for multiple clients. Billing UPS shipments to the clients’ UPS accounts helps them manage logistics without covering shipping fees.
- Corporate or Internal Transfers
Large companies with multiple branches often ship items internally. Billing UPS shipments to a third party helps centralize payment and simplifies internal accounting.
Considerations for Third-Party Billing
When you are opting for billing your UPS Shipments to a third party there are a few factors that you have to consider
- Approval and Restriction
Some third-party accounts may require prior approval before they can be billed. This ensures that the third party is willing and able to cover the shipping costs. It’s essential to communicate with the third party in advance to confirm that their account is set up for third-party billing and that they approve of the charges.
Additionally, not all UPS services may be available for third-party billing, depending on the type of shipment, location, or account restrictions. Verifying these details can prevent any delays or complications.
- Extra Fees or Charges
When billing UPS shipments to a third-party account, there may be additional costs involved. UPS may apply a third-party billing service fee, which adds to the overall shipping expense. This is an important consideration, especially when managing tight budgets, as the party responsible for the shipping may not be aware of these charges unless they are communicated upfront.
By understanding these potential extra fees, you can avoid unexpected costs and ensure a smooth shipping experience when using third-party billing.
UPS Billing options
The third-party billing option by UPS commenced in 2016 with a surcharge fee of 2.5% of the total bill of shipping cost to be charged to the third party.UPS offers several billing options to offer flexibility to the customers. In case the billing options are not specified, then the billing is charged to the shipper.
Here are the following Billing options in UPS :
- Bill Shipper – This is completely a prepaid option, where the bill is charged to the shipper’s UPS account.
- Bill Receiver – This is a pure collection of the bill, wherein the bill is charged to the receiver of the shipment.
- Bill third-party – UPS allows to charge the bill upon a third party other than the shipper and the receiver. Here, the third party needs to have a valid UPS account number and also has agreed upon incurring the charges.
- Bill Payment Card – UPS allows you to bill the shipment to a payment card, which is available upon the creation of a shipment on UPS.com or while using a UPS shipping document.
What is UPS Third-party Billing
All you need to do is find a third party who is willing to accept the charges other than the shipper and the receiver. Moreover to validate the third party requires a valid UPS account number and a zip code. Majorly the third party must be a pre-approved one as well as own a UPS account number which is valid to receive the UPS shipments.
UPS Third-party Billing with ELEX EasyPost
The ELEX EasyPost Shipping Method Plugin for WooCommerce helps you to add third-party billing details without much effort and hassle.
Here you need to enter the third-party billing UPS Account number, the third-party country, and the third-party zip code. You can also opt for billing the third party upon shipment checkout.
The plugin makes it easier to collaborate with third parties and ease your process of shipping with EasyPost. Get to know how to set up the ELEX Easy post plugin here. The plugin also works well with Multi-vendor setup and is compatible with WooCommerce Multi-Vendor Support for ELEX Shipping Plugins.
The Last Shot
In conclusion, billing UPS shipments to a third-party account is a convenient and efficient option for businesses looking to manage shipping costs across different entities. By considering important factors like approval, fees, and potential challenges, you can streamline the billing process. Leveraging third-party billing helps simplify logistics, reduce costs, and improve overall shipping management.
Using ELEX EasyPost Shipping Method Plugin for WooCommerce can make your work easy and you will be able to bill your UPS shipments to a third-party within a few minutes.
FAQs
- Can I bill any shipment to a third party?
Most UPS shipments can be billed to a third party, but some services or locations may have restrictions. It’s important to verify with UPS or the third-party account holder. - Do I need approval from the third party to bill them?
Yes, you should always get approval from the third party before billing to their UPS account. Some accounts may require pre-approval for third-party billing. - Are there extra fees for third-party billing?
UPS may apply a third-party billing service fee. It’s important to check with UPS for any additional costs when using this billing method. - What happens if the third-party account is invalid or declines the payment?
If the third-party account number is incorrect or the payment is declined, you’ll need to correct the account details or choose an alternative payment method (sender or receiver). - Can I bill multiple shipments to the same third party?
Yes, you can bill multiple shipments to the same third-party account, provided the account is active and approved for third-party billing.
