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2011/11/21

Shipping Rules: Tips, Tricks and Best Practices

With so many different items and so many different ways of shipping them, no wonder there is the need to expound shipping rules to accommodate the way we charge for shipping. How do we go about doing this in NetSuite?

Shipping items can be applied to sales orders and made available for customers to choose from on web store orders. This allows for a variety rates and shipping methods to be available. Below is a brief summary and suggestions for setting up shipping items.

Shipping and Handling Rates
NetSuite has 6 different ways of calculating shipping rates and 6 ways of calculating handling.

Shipping Rate Options
· FedEx/UPS Real-Time Rate - Select a real-time rate option from FedEx or UPS for shipping within the US or internationally. You must register your FedEx and/or UPS accounts at Setup > Set Up Shipping to use this option. (This option is great to bill exactly what the carrier charges)
· Flat Rate – Charge a flat rate for shipping on all orders.
· By weight – Enter information to charge by item weight.
· By Item – Charge shipping based on the shipping cost on the item's record. Enter a default amount for items that don't have a shipping cost.
· Percent of Total – Charge shipping as a percent of the total.
· Shipping Table – Charge shipping based on a range of order totals or order weights. When you select this option, you can enter a starting value (can be as low as 0). The charge of the first line applies up to the value of the second line, and so on.

Handling Rate Options
· No Handling Charge - Select this option if you do not charge for handling. (default value)
· Flat Rate - Enter the amount to charge for every item you ship.
· By weight - Enter the amount to charge based on item weight.
· Per item - Charge handling based on the handling charge on the item's record. Enter a default amount for items that do not have a handling charge.
· Percent of total - Charge handling as a percent of the total.
· Handling Table - Charge handling based on a table of charges you create.

Free Item Shipping
A list of items that incur free shipping is also available, but please note that any order that contains at least one of these items will result in the full order be free of shipping charges. If it is important not to zero out the shipping costs of other items, other options should be used such as charging by item which allows you to set a pre-defined charge for each item. In this method, we can set all of our free items to 0 cost, and have specific costs associated to all other items.

Shipping and Handling Rules
This tab section is where we can elaborate on the shipping costs as well as define when this shipping item is available for our web store customers. This is also where we determine the tax applicable to the shipping charges.


Various limit values can also be set in this tab to indicate minimum and maximum shipping costs, as well as having free shipping over a certain order amount. These are particularly useful for weights and percent of total to prevent extremely low charges like those under 1$ for example, or over 100$.

Four separate rules are defined to determine availability of this shipping item.

  • Ship To: To determine either the countries that are eligible or not eligible for shipping, based on shipping address. This is the only rule available outside of web store orders.
  • Web Site: To determine which of your web sites allow or disallow this shipping item.
  • By Total: To determine availability based on order total.
  • By Weight: To determine availability based on order weight
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Combining Shipping Items
All of the preceding options for rules and rates can be further fine tuned by setting up separate shipping items with complementary rules to allow more complex shipping costs.

For example, one could set up two shipping items, one used for US customers, another for international customers. US customers could use the first item with a flat rate, and the international shipping item could be rated based on shipping weight.

Another example would be 2 shipping items within the same country, one based on total percentage, the other based on weight. The following table shows the customer options when both are available.

Order Cost
Order Weight
shipping item (5$/lb)
5% of total
100$
4 lbs
20$ shipping
5$ shipping
500$
4 lbs
20$ shipping
25$ shipping
100$
8 lbs
40$ shipping
5$ shipping
600$
1 lb
5$ shipping
30$ shipping


This next table shows the costs when applying complementary rules for order amounts, calculated by weight for orders under 300$, and calculated by percent of total when over 300$.

Order Cost
Order Weight
Less than 300$, shipping item (3$/lb)
300$ or more, 5% of total
100$
4 lbs
20$ shipping
N/A
500$
4 lbs
N/A
25$ shipping
100$
8 lbs
40$ shipping
N/A
600$
1 lb
N/A
30$ shipping

3 comments:

  1. We had to cancel our implementation of the e-commerce piece of NetSuite because the rules are still not flexible for us. We have products that cannot ship FedEx because of the type of product where as most of our products can. We also have products that can go USPS 1st Class. We need our available shipping options to be determined by the items in the cart. If someone buys a kegerator and a draft beer repair kit, the kit normally ships first class but it is tough to put a kegerator into a small envelope ;)
    Once they allow shipping rules by item, we are all in. Until then we are running a separate web storefront.

    ReplyDelete
  2. Shipping and Handling Rates gives an idea about product & its market place & competition from others.

    ReplyDelete
  3. Shipping Rule tips are interesting, this give me idea about, how to make product value special?

    ReplyDelete