What Is FedEx Collect? (All You Need to Know)

Whether you work for a manufacturing company, a warehouse, or a big-box store, you might have heard of a FedEx service called Ground Collect.

This service allows recipients in a number of large businesses to pay for their shipping, rather than have the shipper foot the bill. It may sound a bit confusing, so check out this article to understand what this service is all about!

What Is FedEx Collect in 2022?

FedEx Collect or FedEx Ground Collect is a billing option for authorized receiving accounts in 2022. When using this program, the recipient is invoiced for shipping charges on their inbound packages. To take advantage of this program, the recipient must have a FedEx account with Ground Collect already authorized. It’s not the same as cash on delivery (C.O.D.).

Understanding FedEx Ground Collect can be a bit tricky, so make sure you finish this article to get all of your questions answered!

What Is FedEx Collect?

FedEx Collect, also known as FedEx Ground Collect, is a billing option that allows commercial recipients to be invoiced for shipping charges on their inbound packages.

This feature is only available for FedEx Ground Commercial addresses.

What’s more, a recipient must have a FedEx account with Ground Collect already authorized to take advantage of this program.

FedEx Ground Collect not only gives recipients control of their inbound shipments but also offers the incentive of volume discounts from FedEx Ground. 

It’s important to note, though, that this program is not the same as cash on delivery (C.O.D.). 

What Is the Point of FedEx Collect?

There are several reasons to start using FedEx Ground Collect. Let’s see what they are in further detail:

Save on shipping charges

If you’re already using FedEx Ground, you may receive a volume incentive by paying for inbound collect packages on the same account.

Additionally, because you’ll receive your invoices directly from FedEx, you can avoid inflated transportation and handling costs that vendors often tack on.

Gain organization and control

When you sign up for collect, you’ll receive a weekly itemized invoice listing vendors, weights, charges, and delivery details.

All of this information can help you maintain accurate records of your inbound volume and merchandise.

Vendor friendly

No automation is required by vendors when shipping via FedEx Ground Collect. That means you can easily implement this program for all of your vendors.

All vendors need is a FedEx account and FedEx Ground Collect barcode labels.

Who Uses FedEx Collect?

Who Uses FedEx Collect?

Some of the most common users of FedEx Ground Collect include the following:

  • Manufacturing companies
  • Online sellers
  • Third-party logistics firms
  • Warehouse operations
  • Big-box stores

How Do You Sign up for FedEx Collect?

You need to be established as an “Authorized Collect Recipient” in order to take advantage of FedEx Ground Collect.

To do so, contact your FedEx account representative or call 1.800.GoFedEx (1.800.463.3339).

After you’ve signed up for the program, instruct your vendors (by way of routing letters) to start shipping all or some of your orders through FedEx Ground Collect.

Which Shipping Services Can You Use With FedEx Collect?

You can use FedEx Ground Collect with the following services:

  • FedEx Ground
  • FedEx Ground Multi weight
  • FedEx International Ground

How Do I Use FedEx Collect?

If you’re a vendor and the recipient of your shipment has asked you to ship via Ground Collect, follow these steps:

  1. Go to Fedex.com, hover over the “Ship” tab, and select “Prepare Shipment.”
  2. Enter your user ID and password and click “Login.”
  3. Verify that the sender’s information is correct.
  4. Enter the recipient information. If you will ship to this address again, check the “Save new recipient in address book” box for faster access in the future.
  5. Select “Perform detailed address check” to avoid incurring address correction fees.
  6. Select FedEx Ground as the service type, then select the type of package you will be using for your shipment.
  7. In the billing details section, select “Collect Authorized Ground Accounts Only” in the “Bill transportation to” field (only use the Collect option when the recipient instructs you to).
  • You are not required to enter a FedEx account number for FedEx Ground Collect shipments
  • If applicable, enter your required reference information in the “Your reference” field. If additional reference fields are required, click “More reference fields.”
  • You can also select optional services like finding a drop-off location, scheduling a pickup, receiving an e-mail notification, or finding estimated rates and transit times.
  1. Complete your shipment by checking the box indicating whether you want to save the changes to your shipment profile or add the new contact to your shipment profile.
  2. Click “Ship” and confirm your shipment details.
  3. Print your shipping label and attach it to your shipment.

How Do You Know If a Package Was Sent Through FedEx Collect?

Whether you’re the shipper attaching a mailing label to your package or the recipient, you can find out if a package was sent through Ground Collect by looking at the shipping label.

Ground Collect packages have the word “Collect” written on the bottom right-hand corner of the label underneath the barcode.

What’s the Difference Between FedEx Collect and Collect On Delivery?

When using FedEx Collect, the recipient pays for the cost of shipping in its entirety. This arrangement is made prior to shipping and is paid for by billing the recipient’s account.

On the other hand, when using FedEx Cash on Delivery (C.O.D.), the shipper designates how much the recipient needs to pay.

In other words, the sender may pay for 50% of the shipping cost and leave the recipient to pay for the other 50%. Or, the shipper may pay 30% and make the recipient pay the remaining 70%.

If the recipient refuses to pay for their portion of the delivery, FedEx will not release the package.

To know more, you can also read our posts on whether or not FedEx ships to Japan, FedEx packages going wrong way, and FedEx UK shipping.

Conclusion

FedEx Collect helps large businesses save on shipping costs, gain organization and control over their shipments, and work more efficiently with vendors.

It’s a service that’s easy to sign up for and use, so if you’re a big business that does a lot of shipping, it may be well worth your time to check out what FedEx Collect is all about.

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Cara Suppa

Cara Suppa has been freelance writing for over a decade and holds a BA in English and an MS in Integrated Marketing Communications. Outside of work, she is an avid cook, gardener, and discount shopper.

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