How does the Markup feature work and how is it applied? [Guide]

Modified on Tue, 25 Apr, 2023 at 11:52 PM

When setting up a Billing Account for a Client, you might need to define markups for it.

NOTE: If you intend to set a Markup/Surcharge for a specific Service Level or have it available across the whole techSHIP portal instead of specifically for a Client and Billing Account, follow the instructions as detailed in How to set up Markup Profiles [Step-by-Step guide]

These can be applied in 3 different ways:

  • Percentage
  • Fixed value
  • Both at the same time (additive)

The markup (or mark-down, if the value is negative) is applied when you update back to the WMS. 
The rates shown in the order processing screen are the ones that apply strictly to the account used for processing, and the Markup value is added later.

NOTE: You can use negative values in the markup fields to downmark the final value. For this diagram, if the Fee Markup% value would be -4%, that 10 USD order would reach the WMS with a value of 9.6 USD, calculated as 10*0.96 or 10 - (10*0.04) 


  • Regular Usage (without taxes included):

            Markup = (Carrier charge before tax) * Fee Percent + Fixed Fee

  • Added Tax Usage (with taxes included):

            Markup = (Carrier charge after tax)* Fee Percent + Fixed Fee

To enable Added Tax usage you must check "Include tax into fee markup calculation"

To post the markup value even when no rates are returned, you must check "Force markup when missing carrier charge"


There is one exception to that rule which is if you are Rate Shopping and you have enabled this option, which adds the markup WHEN rate shopping:

In that case, during the rate shop process, the system will compare the carrier rate + markup (instead of only the carrier rate)
For example, considering the following scenario:
  1. You have Carrier 1 with markup 100% and Carrier 2 with markup 50%

If use markup in Rate Shopping is activated, Carrier 1 will win, while if not, Carrier 2 will.

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