Shipping Management

Overview

Carriers are the entities in the Commerce that represent those in charge of delivering shipments, i.e. those who take orders to the user's address. Shipping management is essential in any Commerce, but it is generally out of its hands, delegated to dedicated companies. It is therefore important to clearly define the interaction with the carrier and keep close control over this area of the Commerce. The shipping management system takes care of all this.

Good control calls for maximum flexibility. This means a Commerce can have as many carriers as it needs. Each carrier must have its associated shipping types defined, and for each shipping type there must be a specified delivery area or areas. Finally, ranges must be established by order weight or value to determine the price to be charged for shipping each order. All this assures a good delivery service with maximum control over costs and shipping or delivery areas.

Configuration

During the shopping process, the user chooses how they want to have their order delivered (see Multi-Shipment System). If they choose one of the home delivery options, they will receive the order through a particular shipping service. To configure shipping a series of elements must be created; these will work hierarchically.

The carrier is the main element, and all the others are determined on this basis. The carrier represents the shipping company that will make the delivery. If there are third-party plugins to integrate with any particular carrier, this is the level at which additional connections and configurations are established.

Each carrier has a specific structure with two elements depending on it:

------ Carrier
          |
          ------ Shipping Types
                    |
                    ------ Shipping areas

For a carrier to be fully operational it must have both these elements set.

Shipping Types

The shipping types can also be called "shipping mode" or "delivery mode" and represent the different forms of delivery offered to the Commerce by each carrier. The shipping types used by the Commerce with each carrier must be registered. For example, carriers often offer delivery in 72h, urgent 24h, by sea, by air, etc., each with their respective rates and times. If, for example, the Commerce hires 72h and 24h delivery services with a particular carrier, it may offer its users two delivery times (with different prices from the outset) with this carrier. These two services are passed on to the Commerce as shipping types with the carrier in question.

shipping types are, therefore, methods of shipment (with the corresponding rates) the user can select at the end of the shopping process to receive the order (to take the same example, they can choose between delivery in 72h and delivery in 24h). As home deliveries are made through shipments, the shipping types that can be used will depend on the shipping areas (where they can be delivered) and on whether their ranges are compatible (see Shipping Areas). To put it another way, it is possible that not all shipping types can be used to ship a specific shipment of certain products, as it will depend on how they were configured.

In each case the system will determine which shipping types are available for a shipment, but there are two features that allow more precise control to be mantained and force the system to choose some before others. One is priority, but in this case, unlike the priorities set in other system functions, it is considered as the "magnitude or relevance" of the shipping type within shipping management. This importance is expressed with a number; the higher this number, the less importance it has (1 has greater importance than, for example, 10). This concept of magnitude or importance can also be associated with other features, such as cost (more expensive or less expensive), whether it is ecological (more polluting or less polluting), whether it needs refrigerated transportation (colder, less cold or normal), size of vehicle (bigger or smaller), whether it is transportation for high-value goods (more secure or less secure) or any other criterion that means giving "weight" to the shipment type. Each Commerce can have its requirements. The system always tries to assign the shipping type with the highest priority number. For example, if the feature given "weight" or importance is whether transportation is more or less polluting, and less polluting shipping types have a higher priority number, the system will always try to assign the one that is less polluting; if importance is attached to the vehicle size and the shipping types involving a smaller vehicle have a higher priority number, the system will try to assign the smallest vehicle (or the cheapest one, or the one that does not need refrigeration, etc.).

Another feature is the restriction that a particular shipping type might impose on the others. This feature complements customizations of shipping by product (see Product) and, in the case of two products with different shipping customizations, serves to determine which of the two shipping types must be used for both of them. Restrictive shipping types:

• Carry more "weight" than non-restrictive shipping types (i.e. if the system has to choose between two shipping types with the same priority, it will choose the restrictive one).

• They can also be assigned a priority, which serves to determine the order between restrictive shipping types (i.e. if the system has to choose between two restrictive shipping types, it will choose the one with the higher-numbered priority).

• They can be used to send products without shipping customization or they can be used to send products with shipping customization with non-restrictive shipping types and with a higher priority than that of the restrictive one.

Example: Let us suppose the Commerce markets furniture and decorative items. There will be products like, for example, a porcelain figure, which can be shipped in a small vehicle, more economically. There will be other products, like a wardrobe, that need special transportation in a larger and therefore more expensive vehicle. In this case, there will be two kinds of shipment: special delivery (D1 for large objects) and ordinary delivery (D2 for ordinary-sized objects). D1 is assigned priority 1 and D2, priority 2.

In normal circumstances, the system will assign D2 to the shipments because they are of the type the Commerce considers the most standard (in this case, associated with the smallest and therefore the cheapest vehicle). If no other change is made to the configuration and a user buys a wardrobe, as the system will assign the shipping type associated with the small vehicle, the wardrobe cannot be shipped because it does not fit in the vehicle. This causes a problem for the Commerce because the shipping costs have been calculated at the rates for the small transportation, and as it will have to use the bigger vehicle, it will also have to bear the difference in cost.

To stop this happening, a shipping customization needs to be assigned to this product. In this case, shipping type D1 is assigned to the wardrobe. When a user purchases a wardrobe, the system will detect that it has a customization set, and instead of assigning the shipping type on the basis of the priority, it will assign it according to this customization. So, it will be shipped as D1, and any extra cost will be passed on accordingly.

Now let us suppose that a user buys a wardrobe and a porcelain figure. The system detects that the wardrobe has a customization, and in principle will assign D1 to deliver the shipment. As the porcelain figure does not have a shipping customization, it can be sent by any shipping type. As the system always tries to minimize the number of shipments, the wardrobe and the porcelain figure will be sent in the same shipment, using D1.

Let us suppose —to complicate things a little more— that now the porcelain figure has shipping customization D2 (because, in normal circumstances, the Commerce prefers to send it by the ordinary means of transportation). If a user buys a wardrobe and a porcelain figure, the system detects that each product has a customization so, according to the configuration, one should be sent by D1 and the other, by D2 (this and other similar cases are discussed in detail in Multi-Shipment System).

To avoid this situation, D1 must be configured as restrictive. Restrictive shipping types can be used to send products customized with non-restrictive shipping types and prioritized with a higher number. As we have non-restrictive D2 with priority 2 (higher than that of D1), D1 (the large vehicle) will also be used to ship the porcelain figure. Therefore, the wardrobe and the porcelain figure will be sent in the same shipment.

Shipping types can have filters by user, user group, country or area. This feature allows greater flexibility as it allows segmentation of transportation by user, user group, country or area.

Shipping Areas

Shipping types can have limitations, both in area and in weight. For example, a shipping type where the delivery vehicle is a bicycle will have a small delivery area and cannot carry very heavy packages. It is also necessary to be able to inform the user of the shipping costs for a certain weight. To determine these features, delivery areas need to be created for the different shipping types. As many shipping areas as required can be created for shipping types. For example, a shipping type with domestic and international rates will need two areas: one to specify the domestic geographical areas and their prices, and another for international geographical areas and their prices.

Shipping areas consist of these three elements:

Ranges

The rates provided by carriers are segmented according to the weight of the package: for example, packages from 0 to 2 kg have one price, those from 2 kg to 4 kg have another and so on. The delivery area ranges are the element that allows this segmentation to be transferred to each of the shipping types and report the shipping cost according to the total weight of the products in a shipment. Moreover, in the ranges this feature is expanded to include not only the weight; shipping cost can be segmented according to the total value of the products in the shipment. In this way, transportation will be cheaper the higher the value of the cart.

Therefore, each of the ranges has two blocks: one block to define the range of weights (From [X] kg - To [Y] kg) and a second block to define the range of shopping cart values (From [X] value - To [Y] value). As many ranges as necessary can be created, provided they do not overlap, i.e. there cannot be two ranges with the four fields From [X] kg - To [Y] kg in the first block and From [X] value - To [Y] value in the second block the same or with ranges that fall within one another. The two fields of the weight block or the two fields of the value block can coincide in two different ranges, but not all four at once.

A price is set for each of these ranges, which will be the cost of transportation where the total weight and/or value of the shipment fall within the ranges fixed.

Sources

The rates provided by carriers vary depending on the source and destination of a shipment. As, in general, it is possible to have different logistic centers in different geographical locations and, as the source of shipments (and therefore of transportation) is a logistic center, the Commerce may have different source locations for delivering shipments. The sources for shipping areas can be associated with one or more logistic centers as a starting point for the shipments delivered in a given shipping area.

Locations

As carriers' rates vary depending on the destination, for the shipping area it must be specified which regions the price ranges set apply to. For example, a shipping type can be defined with two shipping areas: one domestic and the other international. In the domestic shipping area, the price and/or weight ranges are set to determine shipping costs to domestic destinations; these domestic destinations are defined by locations (only domestic geographical locations are added). In the international shipping area, the price and/or weight ranges are set to determine shipping costs to international destinations; these international destinations are also defined by locations (international countries or regions area added).

Locations are taken to mean "the possible geographical areas for the destination of a shipment." There is one exception, which is explained in Multi-Channel System: When three-way relationships are set up (channel - warehouse - physical location) in which the Needs Shipment feature can be enabled, this allows an internal stock transfer. This means that the physical location configured as a pick-up point needs shipping and therefore requires transport. In this case the source will be the relevant logistic center, but the destination will be the pick-up point. Therefore, a physical location can also be configured for the locations. When the system has to determine the cost incurred for transport to a physical location, it selects the shipping type or types (you may wish to provide more than one option to choose from) with this physical location configured as destination within one of their delivery areas, instead of the usual way based on geographical locations. Of course, if the ranges for these areas are incompatible (by weight or by shipment cost), the system could not select the shipping type because it would be outside the range.

Transport Features of the Product

The product has various features closely related to transport.

Weight

The system takes the unit weights of the products making up the shipment, adds them together and uses this total as a value to find a range in the shipping areas for the appropriate shipping type. The system will only select shipping types whose shipping area is compatible, i.e. with weight range brackets that include this total value. Even if shipping types have geographically compatible areas, if the ranges are not compatible with the weight, the shipping type will not be valid to transport this shipment.

Shipping

This feature allows the product weight to be taken into account or not when determining the weight bracket to be used to calculate shipping costs. If this feature is disabled, it means the product does not need a carrier.

Shipping Customizations

A product can be linked to one or several shipping types. This means the product has preferences with regard to transport and the system must take them into account when selecting the shipping type to transport a shipment. For example, a wardrobe might be linked to shipping types that allow shipment of bulky items. For a shipment including this product, the system will assign one of the associated shipping types. If the shipment contains other products and the Commerce has multi-shipment enabled, this factor might lead to the shipment being split into two (or more): one shipment will transport the wardrobe by one of the compatible shipping types and second or further shipments will transport the rest of the products.

Where shipping customizations exist, it is possible that this feature might have to be enabled in a restrictive way for one or more shipping types in the event that there are two products with different shipping customizations, as we have seen with the examples above.

Shipping Calculation Type

Calculation of shipping costs can be based on weight brackets or on the value in the cart. For the first of these, the system uses the weight of each of the products in the shipment to determine the shipping costs. There may however be products whose features mean it is not appropriate to base the shipping cost on weight where there are several units to be shipped. Let us consider the case of a Commerce selling washing machines. Shipping a single washing machine has a price determined, for example, by the type of vehicle required and the people needed to handle it. If two washing machines were to be transported, as the necessary vehicle and people are already available, it would not be as expensive. And if more units are to be shipped, a bigger vehicle type could even be used, cutting the shipping cost even more. In this case the shipping cost for the first washing machine would be higher than those for subsequent units.

If the price by weight (which is calculated in a linear way) were passed on, this scenario would not be reflected accurately (where the calculation cannot be linear), but determined by ranges; i.e. the first unit or first X units have one price per unit, the next Y units have another price per unit, the next Z units have yet another and so on.

The Shipping Calculation Type feature tells the system whether it has to use the weight or the number of units of a product to make the calculation. If the value for this feature is Weight, the system uses the weight of this product in the standard linear calculation by weight. If the value of the feature is Units, the system does not count the weight of the product but takes the number of units specified in the cart for a different type of calculation to find the cost of shipping the product.

This price complements the price by weight for the rest of the products and, even if the shipping cost is the sum of both, they must be calculated separately, i.e. on the one hand the products priced by weight are calculated, and on the other the products where the cost depends on the number of units. In the former case the system takes the unit weight of each product, adds them together and reaches a cost for the total. In the latter case, the number of units of each product is taken to calculate a cost which will be added to that calculated by weight.

Configuration

The shipping calculation type by units requires extra configuration. Products that need calculating by units must be linked to a shipping type (or more than one) because these shipping types are often special. This is similar to shipping customization of the product when an product is linked to a shipping type. The difference is that shipping customization affects weight, while in this case the weight does not matter. Therefore, instead of using shipping customization, a separate association is used that only affects calculation by units.

For this calculation ranges of units need to be set up, to tell the system what price to add on depending on the quantity contained in the cart. Weight or cost intervals are created in shipping areas. In this case, ranges also need to be created that point to these areas. In practice, an area affected by calculation by units will have ranges made up of 3 blocks: one for the weight, one for the value of the cart and a third for the units. The first two of these serve for standard calculation and the last one for calculation by units.

This means that once the shipping type has been associated, it is necessary to specify which shipping areas for this shipping type are involved to be able to link the new ranges. These new ranges are achieved by creating ranges of units From [X] units - To [Y] units, in a similar way to those by weight or cost. Each range has the price per unit that it costs to ship the product; i.e. the first unit or first X units will have a price per unit (which would be what it would cost to ship each of the first X units), the next Y units will have another price per units (which is what it would cost to ship each of these next Y units), the next Z units will have yet another price per unit (which is what it would cost to ship each of the next Z units) and so on. As the shipping areas do not apply outside the destination locations, and as these new ranges are linked to the areas, they will also not apply if the destination is incompatible with these locations.

As it is a non-linear calculation and also the price is by unit, the way the calculation is carried out can be a little confusing. To take an example:

A Commerce sells one product, washing machines (WM1), and has a shipping type (T1) with a domestic area (A1) and an international area (A2). The international area is not worthwhile because the Commerce calculates that the shipping costs would be too high and decides not to send washing machines abroad. It first determines the shipping calculation by units for WM1. Next, it associates WM1 with T1, and then with A1. It defines the following ranges:

These ranges define the following:

To simplify, the order in this example is for a single product. If it included more products and they were products by weight, the cost resulting here would be added to that resulting from the standard calculation.

Scenarios:

Order of 5 washing machines with an international destination:

The system reports that the order cannot be delivered (there are no areas compatible with the destination).

Order of 1 washing machine with domestic destination:

The system reports that the order can be delivered with T1 (A1). The price is: 1u. x €15 = €15 (the first unit costs €15).

Order of 4 washing machines with domestic destination:

The system reports that the order can be delivered with T1 (A1). We have 4 units to distribute between the different ranges: 1 unit in the first (the first range is 1 unit) and 3 (4-1) in the second.

The price is therefore: 1u. x €15 + 3u. x €5 = €30 (€15 for the first unit, €15 [3 x 5] for the rest of the units).

Order of 10 washing machines with domestic destination:

The system reports that the order can be delivered with T1 (A1). We have 10 units to distribute between the different ranges: 1 unit in the first (the first range is 1 unit), 4 in the second (the second range is 4 units) and 5 (10 – [4 + 1]) in the third.

The price is therefore: 1u. x €15 + 4u. x €5 + 5u. x €3 = €50 (€15 for the first unit, €20 [4 x 5] for the rest of the next 4, €15 [5 x 3] for the rest).

Order of 16 washing machines with domestic destination:

The system reports that the order cannot be delivered (it exceeds the number of units).

If the Commerce allows multi-shipment, the shipping calculation type by units can divide up the shipment. For example, if the products with this feature are associated with a special shipping type, the system might decide that the rest of the products in the shipment cannot be sent together, and therefore split the shipment.

Example

Suppose that we have a shipping type (T1) for which the vehicle is a bicycle and delivery is in 2 hours, and a 72-hour shipping type (T2) able to effect domestic and international deliveries. T1 can ship a maximum of 50 kg, and T2 300 kg. The weight ranges for T1 go in brackets of 10 kg, while those for T2 are in 50 kg brackets. T1 only delivers to destinations in city C1, while T2 can deliver to any domestic destination in country CO1 and to 5 other countries internationally (CO2, CO3, CO4, CO5 and CO6). To simplify, let us suppose that the example orders are delivered in a single shipment, and that T1 and T2 have the same priority. The currency used for shipping prices is the euro. Let us suppose these scenarios arise:

1. The Commerce wants to pass on the costs by weight of the carrier's rates.

Configuration

For T1 a shipping area (T1A1) must be created with the following features:

T1A1

Sources: The logistic center for C1 is selected.

Ranges: Ranges are created to reflect the carrier's rates.

Locations: C1 is added.

For T2, 2 shipping areas (T2A1 and T2A2) must be created with the following features:

T2A1

Sources: The logistic center the Commerce has within CO1 are selected.

Ranges: Ranges are created to reflect the carrier's domestic rates.

Locations: CO1 is added.

T2A2

Sources: The logistic center the Commerce has within CO1 are selected (it does not have any international logistic centers).

Ranges: Ranges are created to reflect the carrier's international rates for 5 countries.

Locations: CO2, CO3, CO4, CO5 and CO6 are added.

Scenarios

Order for a total value of €50 and destination C1. The weight of the products is 25 kg:

The system reports that the order can be delivered with T1 (T1A1) for a price of €12, and with T2 (T2A1) for a price of €3 (the value of the order does not affect the price of transportation). The user can choose one of the two.

Order for a total value of €50 and destination C1. The weight of the products is 55 kg:

The system reports that the order can be delivered only with T2 (T2A1) for a price of €5 (the value of the order does not affect the price of transportation).

Order for a total value of €50 and destination in CO1 which is not C1. The weight of the products is 25 kg:

The system reports that the order can be delivered only with T2 (T2A1) for a price of €3 (the value of the order does not affect the price of transportation).

Order for a total value of €50 and destination in CO1 which is not C1. The weight of the products is 301 kg:

The system reports that the order cannot be delivered (there is no weight range that matches the weight of the products).

Order for a total value of €50 and destination in CO4. The weight of the products is 25 kg:

The system reports that the order can be delivered only with T2 (T2A2) for a price of €8 (the value of the order does not affect the price of transportation).

Order for a total value of €50 and destination in CO5. The weight of the products is 55 kg:

The system reports that the order can be delivered only with T2 (T2A2) for a price of €10 (the value of the order does not affect the price of transportation).

Order for a total value of €50 and destination in CO6. The weight of the products is 301 kg:

The system reports that the order cannot be delivered (there is no weight range that matches the weight of the products).

2. The Commerce wants to ignore weights and reward higher-value orders with free shipment.

Configuration

For T1 a shipping area (T1A1) must be created with the following features:

T1A1

Sources: The logistic center for C1 is selected.

Ranges: Ranges are created to reflect the carrier's rates.

Locations: C1 is added.

For T2, 2 shipping areas (T2A1 and T2A2) must be created with the following features:

T2A1

Sources: The logistic centers the Commerce has within CO1 are selected.

Ranges: Ranges are created to reflect the carrier's domestic rates.

Locations: CO1 is added.

T2A2

Sources: The logistic center the Commerce has within CO1 are selected (it does not have any international logistic centers).

Ranges: Ranges are created to reflect the carrier's international rates for 5 countries.

Locations: CO2, CO3, CO4, CO5 and CO6 are added.

Scenarios

Order for a total value of €50 and destination C1. The weight of the products is 25 kg:

The system reports that the order can be delivered with T1 (T1A1) for a price of €8, and with T2 (T2A1) for a price of €3 (the weight does not affect the price of transportation). The user can choose one of the two.

Order for a total value of €80 and destination C1. The weight of the products is 25 kg:

The system reports that the order can be delivered with T1 (T1A1) for a price of €10, and with T2 (T2A1) for a price of €0 (the weight does not affect the price of transportation). The user can choose one of the two.

Order for a total value of €120 and destination C1. The weight of the products is 25 kg:

The system reports that the order can be delivered with T1 (T1A1) for a price of €0, and with T2 (T2A1) for a price of €0 (the weight does not affect the price of transportation). The user can choose one of the two.

Order for a total value of €50 and destination in CO1, which is not C1. The weight of the products is 25 kg:

The system reports that the order can only be delivered with T2 (T2A1) for a price of €3 (the weight does not affect the price of transportation).

Order for a total value of €80 and destination in CO1, which is not C1. The weight of the products is 25 kg:

The system reports that the order can only be delivered with T2 (T2A1) for a price of €0 (the weight does not affect the price of transportation).

Order for a total value of €50 and destination in CO4. The weight of the products is 25 kg:

The system reports that the order can only be delivered with T2 (T2A2) for a price of €10 (the weight does not affect the price of transportation).

Order for a total value of €80 and destination in CO5. The weight of the products is 25 kg:

The system reports that the order can only be delivered with T2 (T2A2) for a price of €0 (the weight does not affect the price of transportation).

3. The Commerce wants to ignore weights, while ensuring that they do not exceed the shipping limit, and reward higher-value orders with free shipment.

Configuration

For T1 a shipping area (T1A1) must be created with the following features:

T1A1

Sources: The logistic center for C1 is selected.

Ranges: Ranges are created to reflect the carrier's rates.

Locations:C1 is added.

For T2, 2 shipping areas (T2A1 and T2A2) must be created with the following features:

T2A1

Sources:The logistic centers the Commerce has within CO1 are selected.

Ranges:Ranges are created to reflect the carrier's domestic rates.

Locations:CO1 is added.

T2A2

Sources:The logistic center the Commerce has within CO1 are selected (it does not have any international logistic centers).

Ranges:Ranges are created to reflect the carrier's international rates for 5 countries.

Locations: CO2, CO3, CO4, CO5 and CO6 are added.

Scenarios

Order for a total value of €50 and destination C1. The weight of the products is 25 kg:

The system reports that the order can be delivered with T1 (T1A1) for a price of €8, and with T2 (T2A1) for a price of €3. The user can choose one of the two.

Order for a total value of €50 and destination C1. The weight of the products is 55 kg:

The system reports that the order can only be delivered with T2 (T2A1) for a price of €3.

Order for a total value of €80 and destination C1. The weight of the products is 25 kg:

The system reports that the order can be delivered with T1 (T1A1) for a price of €10, and with T2 (T2A1) for a price of €0. The user can choose one of the two.

Order for a total value of €120 and destination C1. The weight of the products is 25 kg:

The system reports that the order can be delivered with T1 (T1A1) for a price of €0, and with T2 (T2A1) for a price of €0. The user can choose one of the two.

Order for a total value of €50 and destination in CO1 which is not C1. The weight of the products is 25 kg:

The system reports that the order can only be delivered with T2 (T2A1) for a price of €3.

Order for a total value of €80 and destination in CO1, which is not C1. The weight of the products is 25 kg:

The system reports that the order can only be delivered with T2 (T2A1) for a price of €0.

Order for a total value of €50 and destination in CO1, which is not C1. The weight of the products is 301 kg:

The system reports that the order cannot be delivered (there is no weight range that matches the weight of the products).

Order for a total value of €50 and destination in CO4. The weight of the products is 25 kg:

The system reports that the order can only be delivered with T2 (T2A2) for a price of €10.

Order for a total value of €80 and destination in CO5. The weight of the products is 25 kg:

The system reports that the order can only be delivered with T2 (T2A2) for a price of €0.

Order for a total value of €50 and destination in CO6. The weight of the products is 301 kg:

The system reports that the order cannot be delivered (there is no weight range that matches the weight of the products).