Passing on Shipping Costs from my Manufacturers

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Hi all. I'm setting up shipping settings for a dropshipping business sourcing from multiple manufacturers, all of whom ship directly to the customers. I'm wanting to pass the exact cost of shipping onto the customer and am having trouble. Does each of my manufacturers need to have their own location profile in my Shopify? Tracking inventory is a non-issue. My manufacturers use UPS ground shipping. Do I need to figure out all of their shipping rates for different weight / size shipments and manually enter them as individual shipping profiles? Any help is great.
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Shopify Staff
Shopify Staff
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Hi @davidcowan,

This is a great question, so thank you for reaching out. There is no way to charge the customer exactly what you are due to pay the manufacturer for the shipment of the goods, but there's a couple of things you can do to get these prices aligned.

The first thing I would recommend doing is making sure your shipping options reflect what your manufacturers use—so, in the example you gave, if all of your suppliers are shipping via UPS Ground, this is what you should enable as a shipping option in your own shipping settings. You can read more about setting up shipping with UPS here. You can then do as you suggested, and enable your suppliers' locations as locations within your Shopify store, and add them as third-party fulfilment services in your admin. This ensures you can dictate which products are to be fulfilled by specific suppliers, and if you add their locations to your store, the shipping cost the customer pays at checkout is more likely to be accurate when compared to what you are due to pay the supplier.

Now, a problem here arises if you have numerous suppliers, more-so than the number of locations you are able to add as per your subscription—a breakdown of the number of locations available on each plan can be found here. In this case you may wish to reduce the number of manufacturers and suppliers you're using, or approach things differently from a shipping perspective.

It's also worth mentioning that if you're using the live rates from UPS, you won't need to manually calculate shipping costs ahead of time as these are automatically calculated at checkout. You'll want to ensure that the weights of the products are accurate in your Shopify admin, and if you have the suppliers' location set correctly in your location settings, then this will be used to accurately display a shipping rate at checkout based on this address (and the customer's, of course).

I hope this makes things a little clearer, but please let me know if you've further questions.

Kind regards,

Victor | Shopify Social Care

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Hi Victor, Thanks for this start. I see that I can select UPS Ground as a Carrier under "add rates." If I do select this, does it mean that I also need to install the UPS app and activate a UPS account?

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Shopify Staff
Shopify Staff
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Hi @davidcowan,

No, you won't need to connect an a UPS account to Shopify or install any other app if you are based in the United States. Shopify has an in-built integration with UPS which is available to merchants in the US, meaning you can offer live rates and purchase UPS shipping labels directly via the Shopify admin without needing to connect any external accounts or apps. You can read more details on the integration here.

Kind regards,

Victor | Shopify Social Care

 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

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