Tier-Based Fees

Objective

As a Venture, I want to split the “Fulfillment By Venture” pricing structure into tiers. The goal is to incentivize different strategic goals.

  • The feature allows Ventures to define as many tiers as they need.
  • As splitting criteria, they can use any combination of product price, volumetric weight (accurately calculated in the warehouse and pushed from OMS via API), and category.
  • Using the configuration parameters, we can generate any logical combination that allows inclusion or exclusion of different criteria for tier setup.
  • The pick fee triggered by shipment provider is a feature switch that can be switched on/off.
  • Pick fee can be used also with a fixed value.

Critical Knowledge
If you want to enable Tier-Based Fees, please raise a TMLSD ticket. The parameters that need to be enabled are fee_tiers/enabled , fee_tiers/list and fee_tiers/fee_values.
Within the ticket, please provide the use cases you want to achieve. Follow the example below as a reference.

Setup

Step Description Screenshot
Possible use cases for tiers Example: As a Venture, there is a need to categorize the items in my warehouse under three tiers:

  1. Low
  2. Standard
  3. Oversized

These allow me to apply different pricing strategies.
In order to define the tier-splitting, I can use any of the following three criteria:

  1. Volumetric weight: This is received from the warehouse as soon as the item is inbounded (volumetric weight is recommended as the most accurate value to be referred to).
  2. Item price 
  3. Category
Screen Shot 2016-02-08 at 12.04.36
Setting up the tiers The tiers can be defined here. Their definitions can also be restricted to specific categories in order to successfully test a new strategy.

  • Available placeholders:
    • PRICE
    • WEIGHT
    • CATEGORY
Screen Shot 2016-02-08 at 12.17.12
Allocating Fees As a Venture, I decide which fees should be charged based on tier:

  • Handling Fee (#12)
  • Fixed Storage (#4)
  • Weight (#27)
  • Pick & Pack (#6)

*Please note that the fee names and the IDs are only for explanatory purposes.

The pricing strategy for each of the fees can be prepared and configured accordingly.

 Screen Shot 2016-02-08 at 17.16.42

 

Configurable Fee Formulas per Tiers

Step Description Screenshot
Storage Fee Available placeholders for value expression:

  • PRICE
  • VOLUMETRIC_WEIGHT
  • CONSIGNMENT_STOCK

*Please note that we have only implemented a configurable formula for storage at this point. With the implementation of TML-13871 (configuration to apply storage fee only on certain statuses of consignment stock), we introduced the new placeholder :CONSIGNMENT_STOCK_IN_STORAGE. Please do not forget to update your formulas with this new placeholder if you use the tier-based storage fee.

 Screen Shot 2016-02-09 at 10.38.35
Transaction History Storage fee visible under account statements. Screen Shot 2016-02-10 at 16.59.44

 

Pick Fee Triggered by Shipment Provider

Step Description Screenshot
Pick Fee As a Venture, I want to charge the pick fee only for some shipment providers.
Configuration can only be set on global-level. 		Screen Shot 2016-02-09 at 16.57.24
Order Overview Pick and pack fees are visible under account statements. Screen Shot 2016-02-10 at 16.24.40