If you do any kind of eCommerce or drop shipping, there’s a good chance you’ve heard of third-party delivery and billing. But just because you’ve heard of it doesn’t mean you understand when to use it or how it could help your business.
That’s why we’ve put together this article to explain FedEx’s Third-Party Delivery program. By the end, you’ll understand what Third-Party Delivery means, when to use it, and how it can benefit your business!
FedEx Third-Party Delivery In [currentyear]
FedEx offers a service called Third-Party Consignee, allowing companies to ship directly to buyers without revealing the commercial value of the shipment in [currentyear]. Additionally, it can help companies eliminate handling and warehouse costs. To select Third-Party billing on Ship Manager, enter the payer’s name and FedEx account number in Section 3 of the form.
Understanding Third-Party Delivery at FedEx can be a bit tricky, so pay attention to this guide to get all the answers you need!
What Does Third-Party Mean At FedEx?
Third-Party Delivery means that a company delivers goods on the buyer’s behalf to a third party nominated by the buyer.
Further, when it comes to billing a third party, the cost of shipping is billed to someone other than the sender or the recipient.
Does FedEx Use Third-Party Delivery?
FedEx offers a service called Third-Party Consignee, which allows companies to ship directly to their buyers without revealing the commercial value of the shipment.
Also, it helps companies eliminate additional handling and warehouse costs.
Why Should I Use FedEx Third-Party Delivery?
If you’re debating whether or not to use FedEx Third-Party Delivery, it can be helpful to know the benefits of this service for your business.
As mentioned above, this service allows companies to ship directly to buyers without the buyers knowing the commercial value of the shipment.
Also, third-party delivery can be used to save money.
So, not only do companies eliminate additional handling and warehouse costs, but they also save money on customs duties and taxes.
That’s because customs duties and taxes are based on the initial transaction, not the final value of the shipment.
Who Can Use FedEx Third-Party Delivery?
FedEx’s Third-Party Consignee program is a contractual service and can only be used by FedEx account holders.
Besides having a FedEx account, only businesses operating out of certain countries can use this service. With that, let’s take a look at which countries have access:
- United States (excluding Puerto Rico)
- Austria
- Belgium
- Czech Republic
- Denmark
- Estonia
- Finland
- France
- Germany
- Hungary
- Ireland
- Italy
- Latvia
- Lithuania
- Luxembourg
- Netherlands
- Norway
- Poland
- Spain
- Sweden
- Switzerland
- United Kingdom
- Australia
- China
- Hong Kong
- Indonesia
- Japan
- Korea
- Malaysia
- New Zealand
- Philippines
- Singapore
- Taiwan
- Thailand
- Vietnam (available in Hanoi and Ho Chi Minh City)
Which Countries Can Receive Third-Party Deliveries From FedEx?
Not only are there restrictions on where FedEx’s Third-Party Consignee shipments can be sent from, but there are also restrictions on which destinations can receive these types of shipments.
That said, here are the countries that can receive Third-Party Consignee shipments:
- United States (excluding Puerto Rico)
- Canada
- Austria
- Belgium
- Czech Republic
- Denmark
- Estonia
- Finland
- France
- Germany
- Hungary
- Ireland
- Italy
- Latvia
- Lithuania
- Luxembourg
- Netherlands
- Norway
- Poland
- Spain
- Sweden
- Switzerland
- United Kingdom
- Australia
- China
- Hong Kong
- Indonesia
- Japan
- Korea
- Malaysia
- New Zealand
- Singapore
- Taiwan
- Thailand
How Do I Use FedEx Third-Party Delivery?
FedEx Express gives several options when it comes to indicating who is responsible for the payment of the transportation, duties, and taxes on a shipment.
So, if you’re using FedEx Ship Manager, you can select a third-party billing option in Section 3 of the form.
In this section, you’ll see the “Bill Transportation” and the Bill duties/taxes/fees drop-down lists.
Here, you should select the individual or company paying for the shipment costs. With that, be sure to enter their FedEx account number as well.
Alternatively, if you’re filling out a FedEx International Air Waybill, you can designate a third-party delivery in Section 7a/7b (payment).
Further, when the form asks who you want to bill transportation charges or duties and taxes to, tick the Third-Party box. Again, make sure to enter their FedEx account number.
Keep in mind that the sender is ultimately responsible for all charges and fees if the third party fails or refuses to pay for the shipments.
Is There An Additional Charge For Using FedEx Third-Party Delivery?
FedEx’s Third-Party Consignee service comes with a small surcharge when used with FedEx International Priority and FedEx International Priority Freight shipments.
Currently, the Third-Party Billing Surcharge fee is priced at 2.5% of the total shipment charges.
Also, there is the Third-Party Consignee Surcharge to consider; this fee varies based on the country you’re shipping to.
For more information about these surcharges, contact the FedEx sales team.
To learn more, you can also read our posts on FedEx delivery instructions, does FedEx delivers on Saturdays, and does FedEx delivers to your door.
Conclusion
FedEx’s Third-Party Delivery service can be a massive help if your company is looking to improve its business cycle time.
That said, this service allows you to ship goods directly to the end customer and eliminate additional handling and warehousing costs.
However, there are some restrictions on which countries can use this program, and there are two surcharges to consider. Still, the benefits outweigh these drawbacks.
