What is FedEx Collection? (all you must know)
Whether you work for a manufacturing company, warehouse, or large store, you’ve probably heard of a FedEx service called Ground Collect.
The service allows recipients of many large businesses to pay for shipping, rather than making the shipper pay. It might sound a little confusing, so check out this article to learn what this service is all about!
What will FedEx collect in 2022?
FedEx Collect or FedEx Ground Collect is a billing option for authorized receiving accounts in 2022. When using this program, recipients receive shipping invoices for their inbound packages. To take advantage of this program, recipients must have an authorized Ground Collect FedEx account. It is not the same as Cash on Delivery (COD).
Getting to know FedEx Ground Collect can be a little tricky, so make sure you complete this article to get all your questions answered!
What is FedEx Collection?
FedEx Collect, also known as FedEx Ground Collect, is a billing option that allows business recipients to invoice shipping costs for their inbound packages.
This feature is only available for FedEx Ground Commercial addresses.
Additionally, recipients must have a FedEx account with Ground Collect authorized to use the program.
FedEx Ground Collect not only gives recipients control over their inbound shipments, but also offers incentives for FedEx Ground volume discounts.
However, it is important to note that this program is not the same as Cash on Delivery (COD).
What is the point of FedEx Collect?
There are many reasons to start using FedEx Ground Collect. Let’s see what they are in more detail:
Save on shipping
If you’re already using FedEx Ground, you may earn volume bonuses by paying for inbound pickup packages on the same account.
Plus, because you’ll receive invoices directly from FedEx, you can avoid the often added shipping and handling costs of suppliers.
Gain organization and control
When you sign up for collection, you will receive a weekly itemized invoice listing the supplier, weight, fee and delivery details.
All of this information can help you accurately record incoming quantities and items.
Supplier friendly
Suppliers do not need automation when shipping via FedEx Ground Collect. This means you can easily implement this procedure for all your suppliers.
All suppliers require a FedEx account and FedEx Ground Collect barcode label.
Who uses FedEx Collect?
Some of the most common users of FedEx Ground Collect include:
- Manufacturer company
- online seller
- third party logistics company
- warehouse operations
- hypermarket
How do you sign up for FedEx Collect?
You need to be an “Authorized Payee” to use FedEx Ground Collect.
To do so, please contact your FedEx account representative or call 1.800.GoFedEx (1.800.463.3339).
After you enroll in the program, instruct your supplier (by sending a letter) to begin shipping all or part of your order through FedEx Ground Collect.
What 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 to use FedEx Collect?
If you are a supplier and the recipient of your shipment requires you to ship through Ground Collect, follow these steps:
- Go to Fedex.com, hover over the Shipping tab, and select Ready to Ship.
- Enter your user ID and password, then click Login.
- Verify that the sender’s information is correct.
- Enter recipient information. If you will be shipping to this address again, check the “Save new recipients in address book” box for faster access in the future.
- Select “Perform detailed address checking” to avoid address correction charges.
- Select FedEx Ground as the service type, and then select the package type you will use for your shipment.
- In the Billing Details section, select “Charge Authorized Ground Account Only” in the “Bill Ship To” field (use the “Charge” option only if instructed by the recipient).
- You do not need to enter a FedEx account number for FedEx Ground Collect shipments
- If applicable, enter your desired reference information in the “Your Reference” field. If additional reference fields are required, click More Reference Fields.
- You can also choose optional services, such as finding a drop-off location, scheduling a pickup, receiving email notifications, or finding estimated rates and transit times.
- Complete your shipment by checking the box indicating whether you want to save changes to your shipment profile or add new contacts to your shipment profile.
- Click “Shipping” and confirm your shipping details.
- Print your shipping label and attach it to your shipment.
How do you know if a package was sent through FedEx Collect?
Whether you are the shipper or recipient who attached the mailing label to the package, you can see if the package was sent through Ground Collect by looking at the shipping label.
Ground Collect packages have “Collect” written on the bottom right corner of the label below the barcode.
What is the difference between FedEx Cash on Delivery and Cash on Delivery?
When using FedEx Collect, the recipient pays the full shipping fee. This arrangement is made prior to shipment and is paid for by charging the recipient’s account.
On the other hand, when using FedEx Cash on Delivery (COD), the shipper specifies how much the recipient needs to pay.
In other words, the sender can pay 50% of the shipping cost and let the recipient pay the other 50%. Alternatively, the shipper can pay 30% and let the recipient pay the remaining 70%.
FedEx will not release the package if the recipient refuses to pay part of their delivery fee.
To learn more, you can also read our posts on whether FedEx ships to Japan, FedEx packages going the wrong way, and FedEx UK shipping.
in conclusion
FedEx Collect helps large businesses save on shipping costs, organize and control their shipments, and work with suppliers more efficiently.
It’s an easy service to sign up and use, so if you’re a large business with a lot of shipping, take the time to find out what FedEx Collect is all about.
