Introduction

Accurate shipping cost calculation is vital for maintaining profitability in order fulfillment. iVendNext's dynamic shipping rules automate charge calculations based on actual package weight or order value, eliminating manual estimates and billing discrepancies.

1. Shipping Rule Fundamentals

iVendNext offers three calculation methods:

1. Fixed Rate: Flat fee per shipment

2. Weight-Based: Tiered pricing by package weight

3. Value-Based: Percentage of order value

Key Benefit: Reduces shipping cost errors by 92% compared to manual entry (internal benchmark).

2. Configuration Guide

2.1 Creating a Weight-Based Rule

1. Navigate to: Stock > Shipping Rules > New

2. Set Calculate Based On = "Net Weight"

3. Configure tiers:

| From (kg) | To (kg) | Charges |

|-----------|---------|---------|

| 0         | 5       | $5.00   |

| 5.01      | 10      | $8.50   |

| 10.01     | 20      | $12.00  |

2.2 Value-Based Rule Setup

1. Select Calculate Based On = "Net Total"

2. Set value thresholds:

| From ($) | To ($)  | Charges |

|----------|---------|---------|

| 0        | 50      | 10%     |

| 50.01    | 200     | 7%      |

| 200.01   | ∞       | 5%      |

3. Advanced Implementation

3.1 Territory-Specific Rules

1. Enable "Restrict to Countries"

2. Add regional exceptions:

• Remote areas: +20% surcharge

• Local zones: Free shipping threshold

3.2 Carrier-Based Rules

• Create separate rules for:

• Standard Ground (weight-based)

• Express Air (value-based)

• Freight (pallet weight rules)

4. Real-World Applications

4.1 E-Commerce Optimization

• Free Shipping Thresholds: Auto-apply when cart value > $50

• Oversize Surcharge: Additional $15 for packages > 25kg

4.2 B2B Logistics

• Pallet Pricing: Special rules for full-pallet shipments

• Contract Rates: Custom rules for high-volume clients

5. Troubleshooting

◼ Charges Not Applying:

• Verify items have weight/value in master data

• Check territory restrictions match customer address

◼ Incorrect Calculations:

• Confirm UOM consistency (kg vs lbs)

• Review rule priority if multiple rules apply

Conclusion

Automated shipping rules transform logistics from a cost center to a strategic advantage. By implementing these dynamic calculations, businesses ensure accurate billing while offering competitive shipping options.