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How to set up unified marketplace shipping methods as a marketplace owner?
How to set up unified marketplace shipping methods as a marketplace owner?

A step-by-step guide on how to turn on the unified (global) shipping methods, and reimbursements for sellers for Vendo-powered marketplace

Grzegorz Zielinski avatar
Written by Grzegorz Zielinski
Updated over a week ago

Introduction

Marketplace owners may use one of two methods to calculate shipping rates. One is based on the shipping methods set up by the sellers (e.g., synced directly from their Shopify store), and the second one overrides the sellers' methods and introduces unified shipping methods set up by the marketplace owner. This article will shed some light on the second option.

1. How to switch on the unified marketplace shipping methods
2. How to create unified shipping methods in Vendo?
3. How to set shipping rates in unified shipping methods in Vendo?
4. How to set up reimbursements for sellers?

How to switch on the unified marketplace shipping methods

To switch the unified marketplace shipping methods on, the marketplace owner must first enable them in the Store details in the settings section of the Vendo dashboard.

The enterprise plan is required to use this feature.

Please Note! This is a one-way switch. The change to unified marketplace shipping methods is not reversible!

Sellers' products will now be shipped using shipping methods set up by the marketplace owner. The marketplace owner manually sets the amount of money reimbursed to each seller for shipping products.

How to create unified shipping methods in Vendo?

Once unified marketplace shipping methods are enabled, navigate to the shipping tab of the settings section of the Vendo-powered marketplace dashboard.

Start adding a new shipping method by clicking the green "New Shipping Method" button in the top right corner, which will redirect to the following screen:

Shipping Method Name

By defining a name for the new shipping method, please remember that this is the wording that the customer will see during checkout. A good practice is for the shipping method name to include both:

  • The carrier name (USPS, UPS, FedEx, DHL, etc.)

  • The service type (First Class Mail, Overnight, Ground, etc.)

Example: FedEx Overnight, USPS First Class International

It is widespread to have several shipping methods configured on the marketplace. This field is mandatory.

Displaying Shipping Method Name

From the “Display” drop-down box, choose to present the new shipping method:

  • On the backend only, which means that a shipment method will be visible in the Vendo-powered marketplace dashboard only

  • On the frontend only, which means that a shipment method will be present on the storefront of the Vendo-powered marketplace & visible to customers

  • In both the dashboard and the storefront.

Vendo recommends selecting both, as cases requiring other selections are rare. This field is not mandatory.


​Zones

Zones allow marketplaces to apply shipping rules to a particular geographic region. A single zone can be defined at the country or state level.

A shipping method may serve several zones at once. On the screen below, the marketplace set separate shipping zones for the United States, the United Kingdom, and countries within European Union.

Calculator

A calculator is a component of the Vendo shipping system. It calculates the shipping price for each shipping method. There are several types of calculators to choose from. By default, a new shipping method on a Vendo-powered marketplace has a flat rate calculator set.

How to set shipping rates for unified marketplace shipping methods in Vendo?

On the Vendo platform, marketplace owners can use calculators to set shipping rates for each unified shipping method.

  1. Create a new shipping method as in the previously mentioned steps.

  2. Scroll down to the calculator box.

  3. Choose one of the calculators.

  4. Click the "Create" button.

  5. Add a value(-s) in the newly presented field(-s) in the calculator box that the calculation should be based on

  6. Click the "Update" button.

Example: In this example, the marketplace uses a flat rate calculator and charges $8 for each shipment with this method.

Vendo-powered marketplaces can use the following calculators to set shipping rates for unified marketplace shipping methods:

Digital Delivery

They are used only to calculate shipping rates for products with the digital shipping category. Digital products on Vendo-powered marketplaces omit the physical delivery step by default; the calculator is used if the customer mixes physical and digital products in one cart.

Flat Percent

The Flat Percent calculator allows marketplace owners to set shipping rates as a percentage of the total amount charged for the order. The amount is calculated as follows:

[item total] x [flat percentage]

Example: An order has an item total of $31. The calculator is configured to use a flat percent. The percentage is set to 10%. The shipping rate is $3.10 because $31 x 10% = $3.10.

Flat Rate

The Flat Rate calculator allows marketplace owners to apply a flat shipping rate per order regardless of the number of items.

The amount and the currency charged per order can be set for each shipping method separately.

Example: Vendo-powered marketplace offers two UPS unified shipping methods that apply to the whole order - “UPS 1-Day” which costs $10, and “UPS 2-Day” which costs $15.

To set it up, the marketplace owner creates a UPS 1-Day shipping method, chooses the flat rate calculator, and adds $15 as the amount. Separately, the marketplace owner creates a UPS 2-Day shipping method, chooses the flat rate calculator, and adds $10 as the amount.

As a result, the marketplace's customer can now choose between receiving the order in 1 day by paying $15 or in 2 days by paying $10.


Flexible Rate per package item

The Flexible Rate calculator is typically used for bulk shipping discounts by setting a specific shipping price for the first product and subsequent prices for other products up to a certain amount. It's a great solution if a business ships products in bulk.

The Flexible Rate calculator fields are as follows:

  • First Item Cost: the shipping amount charged for the first item in the order.

  • Additional Item Cost: the shipping amount charged for items beyond the first item.

  • Max Items: the maximum number of items on which shipping will be calculated.

  • Currency: defaults to the default currency configured for the store.

Example: The marketplace owner wants to set a shipping rate that allows the customer to pay only for the shipment of the first two products. Adding more products to the basket should keep the shipping cost the same.

To do so, set the following:

  • First Item Cost = 10,

  • Additional Item Cost = 5

  • Max Items = 2

  • Currency = USD

With this setting:

  • The shipping cost of an order with 1 item only would be $10

  • The shipping cost of an order with two items would be $15

  • The shipping cost of an order with 3 and more items would cost $15

Flat Rate per package item

Very similar to the Flat Rate but calculated per item, not the whole order. It allows marketplace owners to determine the shipping rates based on the number of items in the order.

Example: Flat rate per item amount is set to $10. A customer places an order with 4 items, so the total shipping price for the order is $40.

Price Sack

The Price Sack calculator is a way to offer discounted shipping rates to orders over a certain order amount. The Price Sack calculator takes four inputs:

  • Minimal Amount: the value of the order subtotal that is needed to specify which shipping rate to apply

  • Normal Amount: the shipping cost applied to orders with a subtotal less than the Minimal Amount

  • Discount Amount: the shipping cost applied to orders with a subtotal greater than or equal to the Minimal Amount

  • Currency: defaults to the currency you have configured for the marketplace

Example: For orders above $25, the marketplace wants to offer free shipping. For orders below $25, the shipping price should be $8. These are the settings to add:

  • Minimal Amount - $25

  • Normal Amount - $8

  • Discount Amount - $0

A customer whose order subtotal equals $23 would be offered a shipping cost of $8 using this shipping method. A different customer whose order subtotal equals $25 would be provided free shipping.

How to set up estimated transit times?

Setting up transit times minimum and maximum days will help your client estimate the delivery date. We will display this information on checkout.


How to set up reimbursements for sellers in unified marketplace shipping methods?

In the Partner Reimbursements section of the shipping method edit page, marketplace owners will find a place to set up how much money each seller will get after shipping an order to the end customer.

Express, 1-day, or other premium methods may require larger compensation than the standard shipping methods.

The amount set here will be added to the money transfer the seller will receive from Stripe. It will be presented as a shipping cost on the seller's orders.

Sellers have to match their shipping methods to the ones created by the marketplace owner if the unified delivery is enabled.


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We would love to hear your feedback at support@getvendo.com or through the chat available in the bottom right corner of your screen.

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