Dropship Fee Calculation

If you turn on 'Compute Fees' in the 3PL / receiver side of the Teapplix account, Teapplix can help compute the fee that the receiver account should charge the submitter account for each order that is submitted. The fee can have the following components:

  • The handling charge, if any, for the first SKU in the order (generic, or sku specific)
  • The handling charge if any for any additional SKU / qty in the order
  • The packaging charge for the first SKU in the order (generic or sku specific)
  • The packaging charge for any additional SKU / qty in the order
  • The markup to transportation cost used to compute shipping charges to the customer submitting the order.

Once you turn on Compute Fees, receiver account must have weight + ship method set for all SKUs that they expect to ship for customers. This is done in the Weight Table section of Inventory. Without this data, there is no way to compute the transportation costs.

Computing Transportation Costs

Teapplix compute the transportation costs for an submitted order by running rate quotes in the receiver account, given the weight / method from the weight table. If weight table data is missing, the submit order is rejected.

Once rate quote is done, Teapplix takes the 'transportation' part of the cost and applies the markup setup. Markup can be fixed percentage, or fixed $ amount, based on weight ranges. Some special accessory charges, like FedEx home delivery fees, are added to the computed total charge without markup applied.

Computing Handling and Packing Costs

Teapplix takes the first SKU unit and determines any handling / packing costs. If there are additional SKU units, we add up the 'handling_multi' and 'packing_multi' charge that is applicable for those SKUs.

The final Transportation Cost (including markup + any accessory charges) + Handling and Packing Costs are charged to the submitter account as part of the submit order. Notice that this charge is a virtual 'charge' as no money change hands. It simply is a journal entry in "Dropship History" page. The charge is considered done when the order is submitted, regardless of if the receiver ships the order or not, or if the shipper uses a different service to ship the order.

Canceling an Order

If receiver cancel the submitted order without shipping it, Teapplix will reverse the dropship charge by adding an adjustment entry.

Running Register

Each submitter account has a running register managed by receiver, on Order History->Dropship History page. Receiver can add an initial balance, and any manual 'recharge' or 'adjustment' records on the "Received Payments". This establish a virtual 'balance' for each submitter account. Submitter cannot submit any order that will result in the balance to reach below 0.

Postage Meter Mode

Teapplix can switch certain dropship accounts into 'Postage Meter Mode". In this mode, when submitter submits an order,  their Teapplix Postage Meter balance will be deducted with the charge for the order.  And receiver account Postage Meter will be credited with the same amount.

The charge would include postage + markup + handling + packing fee,  depending on the dropship account setup.  The postage will be calculated based on the rate on the receiver account.

Currently this mode requires special Teapplix approval, so contact Teapplix Support for details.