FedEx Third Party Delivery (Meaning + Other Related FAQs)
If you’re in any kind of e-commerce or dropshipping, chances are 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 can help your business.
That’s why we put together this article to explain FedEx’s third-party delivery program. Finally, you’ll learn what third-party delivery means, when to use it, and how it can benefit your business!
FedEx Third Party Delivery in 2022
FedEx offers a service called third-party consignees that allow companies to ship directly to buyers without revealing the commercial value of shipments in 2022. Additionally, it can help companies eliminate handling and warehousing 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 FedEx’s third-party deliveries can be a little tricky, so pay attention to this guide to get all the answers you need!
What does a third party mean at FedEx?
Third-party delivery means that the company delivers the goods on behalf of the buyer to a third party designated by the buyer.
Also, when billing a third party, shipping is billed by someone other than the sender or recipient.
Does FedEx use third-party delivery?
FedEx offers a service called Third-Party Consignee that allows companies to ship directly to buyers without revealing the commercial value of the shipment.
Additionally, it can help companies eliminate additional handling and warehouse costs.
Why use FedEx Third Party Delivery?
If you’re debating whether to use FedEx third-party delivery, it may be helpful to understand the benefits of this service for your business.
As mentioned above, this service allows companies to ship directly to buyers who do not know the commercial value of the goods.
Additionally, third-party delivery can be used to save money.
As a result, companies not only eliminate additional handling and warehousing costs, but also save on duties and taxes.
This is because duties and taxes are based on the initial transaction, not the final value of the goods.
Who can use FedEx Third Party Delivery?
FedEx’s Third Party Consignee Program is a contractual service that can only be used by FedEx account holders.
In addition to having a FedEx account, this service is only available to businesses operating in certain countries. With that out of the way, let’s see which countries are accessible:
- 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
- U.K.
- Australia
- China
- Hongkong
- Indonesia
- Japan
- South Korea
- Malaysia
- new Zealand
- the Philippines
- Singapore
- Taiwan
- Thailand
- Vietnam (available in Hanoi and Ho Chi Minh City)
Which countries can accept FedEx’s third-party courier?
Not only are there restrictions on where FedEx third-party consignee shipments can be sent from, but there are also restrictions on which destinations can receive these types of shipments.
That said, the following 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
- U.K.
- Australia
- China
- Hongkong
- Indonesia
- Japan
- South Korea
- Malaysia
- new Zealand
- Singapore
- Taiwan
- Thailand
How do I use FedEx Third Party Delivery?
FedEx Express offers a variety of options when it comes to specifying who is responsible for paying shipping, duties, and taxes.
Therefore, if you use FedEx Ship Manager, you can select third-party billing options in Section 3 of the form.
In this section, you’ll see the Bill Shipping and Bill Duty/Tax/Fees drop-down lists.
Here, you should choose the person or company that will pay for the shipping. As such, be sure to enter their FedEx account number as well.
Alternatively, if you are filling out a FedEx International Air Waybill, you may specify third-party delivery in Section 7a/7b (Payment).
Also, tick the 3rd party box when the form asks who you want to be billed for shipping or duties and taxes. Again make sure to enter their FedEx account number.
Remember that if a third party fails or refuses to pay for the shipment, the sender will ultimately be responsible for all costs and expenses.
Are there any extra charges for using FedEx 3rd party delivery?
When used with FedEx International Priority and FedEx International Priority Freight shipments, there is a small surcharge for FedEx’s third-party consignee service.
Currently, the third-party billing surcharge is priced at 2.5% of the total shipping cost.
Additionally, there is a third-party consignee surcharge to consider; this fee varies depending on the country you’re shipping to.
For more information on these surcharges, please contact the FedEx sales team.
To learn more, you can also read our posts on FedEx delivery instructions, whether FedEx delivers on Saturdays, and whether FedEx delivers to your door.
in conclusion
If your company is looking to improve its business cycle time, FedEx’s third-party delivery services can be of great help.
That said, this service allows you to ship your goods directly to the end customer and eliminates additional handling and warehousing costs.
However, there are some restrictions on which countries can use the program, and there are two surcharges to consider. Still, the benefits outweigh the drawbacks.
