Understanding How Shipper of Record Affects Parcel Spend

Understanding How Shipper of Record Affects Parcel Spend | Parcel BI


A shipper of record is the company that is initially shipping out a package, not necessarily the company paying for the shipping. For example, you could be shipping something to your customer on their account, and you think that you're not paying for anything because they are the ones who will be charged for shipping costs. However, there are certain charges that you could be subject to that you may not be aware of.

What are Charges You Need to be Aware of as the Shipper of Record?

Address Corrections:

If you ship out a package to your customer but entered the wrong address, you are subject to the address correction fees, not the billed account! This comes as a surprise to many shippers who do a lot of third party shipping. At $16 or more, these charges can add up fast!

Invalid Accounts:

If your customer has given you the wrong account information or their information has expired, but you ship using that invalid account, you will have to pay a fee for that and may be subject to a chargeback or rebill.

Chargebacks and Rebills:

If your customer refuses the charges for the package, you have shipped to them, as the shipper of record you are responsible for paying that bill. This is an after the fact charge, meaning you might not get this bill until weeks or months later, which can make it harder to track. If the number is invalid, but the account is on hold, this may be a red flag that your customer may be having financial issues and not be able to pay you for your goods either.

These are only a few of the charges that you may be assessed as the shipper of record. Though for one or two packages this may not seem like a huge deal, but if you are shipping hundreds or even thousands of packages, these charges will really add up quickly and significantly!

What is Declared Value and Why is it Important to Shipper of Record?

Declared value is an estimated dollar amount on how much a shipper believes the package to cost so that if it is lost or damaged. Entering a value over $100 per box provides shipping insurance to cover loss or package damage. However, this value is determined by the shipper of record, and when assessed by a supplier, it costs you money. Third Parties tend to over-insure packages. This is often an unnecessary cost that doesn't do you any good because if that package is lost or damaged the shipper of record is the one who gets that money back. 

Declared value could be beneficial, but it is often best practice to not use it when you are shipping internally. However, it can be hard to monitor if you are using a third party to ship. That is where Parcel BI comes in and expose where you are incurring declared value costs unnecessarily. 

How Does Parcel BI Help You with these Costs?

Parcel BI offers business intelligence reporting tools that help you track and expose these areas where you may be leaking money as the shipper of record or by outside shippers using your account number. Not only can our tools help you manage unexpected costs from your customer's collect shipments, but we also help you monitor your shipping spend on your account by suppliers or with returns. 

If you are having inbound shipping on your account or are using a third-party to ship to your customers, there are reasons for closely monitoring those numbers such as declared value, and we often save companies with issues, several thousand or much more annually.


It is hard to notice where your company is leaking money on parcel spend, but it doesn't have to be. With Parcel BI, you are empowered to monitor all of your parcel spend easily! Contact us today with any questions or try our free demo on how our tools will help your company save on parcel!

Understanding How Shipper of Record Affects Parcel Spend | Parcel BI

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