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Are You Aware of These Shipping Terms? Part II

Puneet Bhalla

Associate Director - Marketing @ Shiprocket

April 8, 2015

3 min read

E-Commerce is fast gaining popularity due to its ease of shopping and shipping. Now consumers no longer have to invest long hours in shopping, as every item is easily available online, which they can compare and purchase. The process of shipping is intriguing and interesting. We had already discussed the part one of common shipping jargons that you should be aware of. Here is the second part on familiarizing with some more shipping terms.

ETA: Expected Time of Arrival (ETA) denotes the time of the shipping carriers reaching the destination of the receiver, which includes both merchants and clients. Merchants can pick their returned goods, while customers can receive their ordered items.

ETD: Expected Time of Departure (ETD) denotes the time of the aircraft takeoff or the ship’s sailing post stocking their freights.

Bill of Lading: The official contract on shipping is entered between the vendor and the carrier by the means of Bill of Lading. It indicates details on the terms and conditions for shipping the merchandise as agreed between the merchant and the shipping company. It also acts as a receipt for goods.

Freight Rates/ Base Rate: Courier companies charge a minimum rate for shipping, which is called Base Rate. This base rate is based on per kg or per 0.5 kg of the parcel. The price is independent of the current fuel charges, taxes, and the distance covered.

SKU: Stock Keeping Unit (SKU) denotes the identification code of an item for shipping via Airlines. The purpose of providing the unique identification number is to differentiate the product and its attributes from the rest of the stock. It may include other specifications too ,like size, brand, model, and color of the product.

Reverse Order Pickup: Reverse Order Pickup (ROP) indicates that the courier company needs to pick up the previously placed order. ROP occurs due to a returned order by a dissatisfied customer. Upon requesting the order to be returned by the customer, the merchant immediately relays the same information to the Courier Company.

Volumetric Weight: The volumetric weight is calculated according to the volume of the cargo. Volumetric weight ensures suitable charges are applied based on the volume weight in case the actual weight is low. For example, cotton merchants pay traffic based on the volumetric weight, as it is light in weight and does not occupy space.

Chargeable Weight: The chargeable weight is assessed by first calculating the volumetric weight and the actual weight. Chargeable weight is either of this weight, which is greater than the other. Thus, if the volumetric weight is more, it is counted as chargeable weight, and if actual weight is more it is said to be chargeable weight.

Missing Orders: If the product is untraceable due to reasons like wrong delivery address, and seized by the customs, then the package/order falls in the category of the missing orders. However, instantly items are not declared as missing orders, initial research goes into what went wrong by tracking the Airway Bill Number (AWB) Number.

Fuel Surcharge: Fuel surcharge is the extra amount of charges levied on the order due to the increase in the rate of fuel price.

Out of Delivery Charges: Out of Delivery (OD) charges are applied to an order if the merchandise is demanded in a specific period of time by the customer.

We hope these terms will help you be aware of freight handling charges and enable you to make a wise hiring decision if you are a merchant. And, if you are a customer you know what all is included in the purchase tag.

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