Learn how to streamline your shipping process by setting up third-party billing in FedEx Ship Manager.
Tips for FedEx Shippers

How to Set Up Third-Party Billing in FedEx Ship Manager

Published:
July 1, 2024
|
Last Edited:
July 11, 2024
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Read time:
8 minutes
Anthony Robison
CEO & Founder
Anthony Robinson
Founder & CEO @ ShipScience

Are you a business owner looking for a streamlined and cost-effective way to handle shipping expenses? Third-party billing in FedEx Ship Manager may be the solution you need. In this article, we will explain what third-party billing is, its benefits, and guide you through the process of setting up third-party billing in FedEx Ship Manager.

What is Third-Party Billing in FedEx Ship Manager?

Third-party billing is the process of charging shipping expenses to a third-party account instead of the sender or receiver. This can be done for a variety of reasons, such as when a business needs to pay for the shipping expenses of their customers or suppliers. FedEx Ship Manager offers the option to set up a third-party account to streamline this process.

One of the benefits of using third-party billing in FedEx Ship Manager is that it can help businesses save time and money. By charging shipping expenses to a third-party account, businesses can avoid the hassle of reimbursing their customers or suppliers for shipping costs. This can also help businesses negotiate better shipping rates with FedEx, as they may be able to leverage the volume of shipments they send through the third-party account.

It's important to note that third-party billing is not available for all FedEx services and may require additional paperwork or authorization. Additionally, businesses should ensure that they have a clear agreement with their customers or suppliers regarding who will be responsible for shipping expenses before using third-party billing.

Benefits of Using Third-Party Billing in FedEx Ship Manager

There are several benefits to using third-party billing in FedEx Ship Manager:

  • Cost-effective: Instead of paying for shipping expenses from your own account, you can assign them to a third-party account, saving your business money.
  • Easy tracking: With third-party billing, you can easily track shipping expenses associated with specific customer or supplier accounts.
  • Streamlined payments: When using third-party billing, invoicing and payments are simplified since all shipping expenses are automatically charged to the assigned third-party account.

Aside from the benefits mentioned above, using third-party billing in FedEx Ship Manager also allows for greater flexibility in managing your shipping expenses. You can easily adjust the billing information for each shipment, depending on the specific needs of your business.

Moreover, third-party billing can also help improve your business relationships with customers and suppliers. By assigning shipping expenses to their accounts, you can provide them with a more convenient and efficient way of managing their own shipping costs, which can lead to increased customer satisfaction and loyalty.

Pre-Requisites for Setting Up Third-Party Billing in FedEx Ship Manager

Before setting up third-party billing in FedEx Ship Manager, you'll need to ensure that you have the following:

  • A FedEx account number in good standing
  • A valid third-party account number and billing address
  • Authorization and security credentials, if required by the third-party account holder

It's important to note that not all third-party billing options are available for all FedEx services. Before setting up third-party billing, make sure to check if the service you're using supports it. Additionally, some third-party account holders may have specific requirements or restrictions for billing, so it's important to communicate with them beforehand to avoid any issues.

Step-by-Step Guide to Setting Up Third-Party Billing in FedEx Ship Manager

Follow these steps to set up third-party billing in FedEx Ship Manager:

  1. Log in to FedEx Ship Manager and select the "Admin" tab.
  2. Under the "Billing" section, select "Third-Party Billing."
  3. Enter the name and contact information of the third-party account holder.
  4. Enter the third-party account number and billing address.
  5. If required, enter the authorization and security credentials provided by the third-party account holder.
  6. Save the third-party billing information. You can now assign the third-party account to specific shipments.

It is important to note that when using third-party billing, the third-party account holder will be responsible for all shipping charges. This means that if there are any issues with payment or disputes over charges, the third-party account holder will need to resolve them directly with FedEx. Additionally, it is recommended to have a written agreement in place with the third-party account holder outlining the terms and conditions of the billing arrangement.

How to Add a Third-Party Account in FedEx Ship Manager

To add a third-party account in FedEx Ship Manager, follow these steps:

  1. When creating a new shipment, select "Third Party" under the "Billing" section.
  2. Select "Add New Third Party."
  3. Enter the third-party account number and billing address.
  4. Select "Save" to save the third-party account information and assign it to the shipment.

It is important to note that when using a third-party account in FedEx Ship Manager, the third-party will be responsible for all shipping charges. This means that if the third-party account is not in good standing or has insufficient funds, the shipment may be delayed or returned to the sender. It is recommended to verify the third-party account information before assigning it to a shipment.

How to Assign a Third-Party Account to a Shipment in FedEx Ship Manager

To assign a third-party account to a shipment in FedEx Ship Manager, follow these steps:

  1. When creating a new shipment, select "Third Party" under the "Billing" section.
  2. Select the pre-existing third-party account from the drop-down menu under "Third-Party Account."
  3. Enter any necessary payment information, such as a purchase order number or reference information, and save the shipment.

It is important to note that the third-party account holder must have authorized the use of their account for the specific shipment. This authorization can be obtained through a written agreement or by providing the third-party account holder with the necessary shipment details.

Additionally, if the third-party account holder has specific billing instructions or requirements, such as a billing address or account number, it is important to ensure that this information is entered correctly in the appropriate fields in FedEx Ship Manager.

How to Verify and Edit Third-Party Account Information in FedEx Ship Manager

To verify or edit third-party account information in FedEx Ship Manager, follow these steps:

  1. Under the "Admin" tab, select "Third-Party Billing."
  2. Select the third-party account you want to verify or edit.
  3. Review or edit the account information, and save any changes.

It is important to note that only authorized users with the proper permissions can access and edit third-party account information in FedEx Ship Manager. If you do not have the necessary permissions, contact your FedEx account administrator to request access or changes to the account information.

Troubleshooting Common Issues While Setting Up Third-Party Billing in FedEx Ship Manager

If you experience issues while setting up third-party billing in FedEx Ship Manager, consider the following:

  • Ensure that you have the correct third-party account number and billing address. This information can be verified with the third-party account holder.
  • If required, ensure that you have the correct authorization and security credentials.
  • Contact FedEx customer support for additional assistance.

Another common issue that may arise while setting up third-party billing in FedEx Ship Manager is incorrect billing information. Make sure that the billing information matches the information provided by the third-party account holder. Any discrepancies can cause billing errors and delays in shipping.

Additionally, if you are using a third-party billing software, ensure that it is compatible with FedEx Ship Manager. Incompatible software can cause errors and prevent successful setup of third-party billing. Check with the software provider or FedEx customer support for compatibility information.

Best Practices for Using Third-Party Billing in FedEx Ship Manager

Here are some best practices to keep in mind when using third-party billing in FedEx Ship Manager:

  • Keep accurate records of all shipments charged to third-party accounts.
  • Regularly verify and update third-party account information to ensure accuracy.
  • Ensure that all shipment information is entered correctly and matches the information provided by the third-party account holder.
  • Communicate clearly with third-party account holders regarding shipping expenses and payment terms.

Following these best practices will help you avoid errors and make the most of the benefits provided by third-party billing in FedEx Ship Manager.

It is important to note that not all third-party billing options are created equal. Some may offer better rates or more flexible payment terms than others. It is worth taking the time to research and compare different third-party billing options to find the one that best fits your business needs.

Conclusion

Third-party billing in FedEx Ship Manager can save your business time and money, while also streamlining the shipping process. By following the steps outlined in this article, you can quickly and easily set up third-party billing in FedEx Ship Manager and start taking advantage of its many benefits. Remember to keep accurate records, verify account information, and communicate clearly with third-party account holders to ensure a smooth shipping experience.

It is important to note that third-party billing may not be available for all shipping services or destinations. Before setting up third-party billing, be sure to check with FedEx to confirm that it is an option for your specific shipping needs. Additionally, it is recommended to periodically review your third-party billing arrangements to ensure that they are still meeting the needs of your business and that all account information is up to date.

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