0 Replies Latest reply on Jan 11, 2012 11:24 AM by Matthew Cromar

    How do you calculate shipping charges?

    Matthew Cromar Journeyman

      Hello everyone in the Ariba Supplier Community.


      I'm doing some research to try to figure out the various methods that sellers use calculate shipping charges for the items in your catalog. 


      Some Ariba customers have expressed an interest in beginning to understand shipping charges up front before an order is generated.  In addition, many would like to understand the effect of ground, 2 day, and next day shipping options on the overall cost of the items being ordered.


      1. Do you calculate charges per item. 

                -Meaning if widgetA=3$ shipping, then ordering a quantity of 4 widgetA's =12$ shipping? 

      2. Do you calculate charges per shipment?

                -Meaning a customer orders 5 different items from you.  You pack them all up in a box and then calculate charges.

      3. Do you use a value based approach to shipment charges?

                -Meaning you charge say 5$ if order is between 0-50$, 7.50$ if between 51-100$, 10$ if between 101-150$

      4. Are there any circumstances where you provide free shipping?

                -Perhaps an order over 250$ you provide free shipping

      5. Do you ever run promotions to provide discounted or free shipping for your B2B customers?

      6. Do you calculate shipping charges based on geography

                -Meaning you use the your ship from and the customer ship to locations to determine shipping

                -Do you offer a flat rate within the continental US and perhaps add more for Hawaii and Alaska?

      7. Do you split out shipping charges for different commodities?

                -Meaning you have a shipping table that looks at the commodity type and then uses the appropriate charge

      8. Is shipping handled automatically through a shipment management system or is human interaction required?

      9. Do your buyers ask you to use their shipping accounts to ship their products to them?


      Any input would be greatly appreciated.  If you'd like to speak with an Ariba Product Manager specifically about this topic to help us better understand your requirements, please don't hesitate to contact me directly.




      Matthew Cromar

      Senior Product Manager

      Ariba Network Solutions