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What do shipping differences mean?

The term shipping difference means the difference in how much the customer pays for shipping their order versus how much the retailer actually pays when they ship the order to the customer.

Example: If you have a flat rate of say $15 then that is the amount the customer pays at checkout but say the amount it actually cost the retailer to ship was $18 then the brand would be responsible for covering that $3 difference. On a monthly basis the shipping differences are calculated and billed to the brand. 

If no flat rate or tiered rate is set, then the shipping cost at checkout is an estimated cost pulled from the retailer’s system. However, this is an estimate and it is not always the same as the retailer’s true cost to ship out the order. The difference is the slight variation from the estimated cost to the true cost of shipping netted out over a month’s time. 

If you would like more clarify into the charges for shipping differences, please reach out to our accounting team directly at accounting@accelpay.io.