Shipping - 3rd Party Billing?

[olimits7]

Hi,

I see that shipping carriers like DHL, FedEx, UPS all offer the ability to bill to "3rd party" by using one of their authorized selling partner's account number.

These authorized selling partner's shipping rates are usually better than what I can receive going directly with one of these shipping carriers.

My question is why do these shipping carriers allow shippers like myself to use these "3rd party" account numbers from their authorized partners to receive better shipping discounts if they don't provide me these shipping discounts directly?

It just seems strange to me that if I ask the shipping carrier for better discounts they don't offer them to me because of my shipping volume, but then I can just go to an authorized partner and get better rates and the shipping carrier has no issues with this?

Thank you,

olimits7

[olimits7]

Anybody have experience with using 3rd party billing for shipping?

[dpd1]

I'm just guessing, but... Easier for them? They're guaranteed a certain volume through those guys. They may not be guaranteed a certain volume through you. Easier to do accounting, rather than keep track of dozens of smaller people. Kind of like how they do domain sales with associates.

[olimits7]

Yes, that's true!

It just seems strange to me, because sometimes I get calls from sales reps seeing when I will ship through my account number.

And I feel like telling them, why in the world would I ship through my account number if I'm getting better rates through a "3rd party provider"! lol...it doesn't make sense!

[topr8]

... i ship my fedex packages via a 3rd party - at considerable discount to the rates i can get myself. fedex even phoned me up about it when they noticed what i was doing, however they can't offer me a similar rate direct.

the only thing is, i had an issue with one package, and had to go through the 3rd party to get it resolved rather than direct with fedex.

[olimits7]

Ok, but that's the thing, FedEx/UPS/DHL they can't say or do anything just because we ship all shipments via 3rd party; right?

[topr8]

i don't know, but they seem happy.

although i would say that my local fedex guy told me that a significant number of packages he collects are now going through a particular third party, he didn't know why until i told him about the price difference.

... i've been using the third party for a few months now without any problem

[ssgumby]

Who are you using for the 3rd party? Just curious who all is out there.

[Ecommguy]

I ship about 30-40 packages a day and its sad that I cant get a rate as a good as a third party company.

I did a lot of searching and found a really good one with really good DHL rates. I've been burned far to much shipping international packages USPS.

Id be happy to get you in touch with my contact, just shoot me a message.

[lgn1]

Yes, third party fullfillment is catching on. You move all your stock to a third party warehouse, that may be dealing with hundred of clients. These fullfillment companies are getting huge shipping discounts due the volume, and the fact that FedEx comes by to pickup a preloaded trailer.

This reduces your fullfillments costs to below what you can do inhouse. The only problem is that you lose control over quality. One bad picker, can result in a lot of screwed up orders. However, the better companies keep an eye on quality control, and if a picker keeps screwing up, they are terminated.

[techego]

Me and my company have recently branched off from doing lots of SEO services to becoming one of these 3rd party shipping agents. We are an agent of England Logistics, a Fedex and DHL partner. As such, we look into the shipping habits and trends of those who contact us and set up an account for them personalized with the steepest discounts anyone can offer for their most-used shipping methods and patterns.

If any of you are interested in learning more, you can message me or send me a personal e-mail at [e-mail].