Enterprise Fees
Last updated
Last updated
Enterprise fees are most relevant to producers and hubs who are working together in sales and distribution activities. It allows costs associate with admin, packing, transport, sales and fundraising to be allocated to different parties. It's also commonly used as a way for the middle man to apply a markup for their services. For single producers, selling only their own produce, these costs are incorporated into the price of goods and shipping, so applying enterprise fees is usually not necessary.
Depending on what kind of fee calculator you select, an enterprise fee is applied either as a markup on all goods in the shop - in which case customers will be able to view what percentage of the price is attributable to enterprise fees. They can do this in the store by clicking on the pie graph icon, next to each product. See below for an example. Alternatively the fee will be applied to the total order (for example a $5/order fee).
Click Enterprises in the blue horizontal menu, and then click Manage next to your enterprise. Then, click Enterprise Fees in the menu on the left hand side.
The first step to applying fees in your shop is to create the Enterprise Fee, as detailed on this page.
The second step is to apply the fee to an order cycle. If the fee is not applied to the active order cycle, it will not apply in your shop. See the order cycles for producers or hubs for more details.
Enterprise: In the first column, select the enterprise who will receive this fee.
Fee Type: Select the service that this fee applied to.
Name:Choose a name for this fee.
Tax Category:Select the appropriate tax rate.
Calculator:The fee can be calculated in a number of ways. Select the calculator which best applies.
Click Update, to create the enterprise fee. Once the fee has been created you can specify how the fee will be calcuated in the Calculator Values column.
Weight (per kg) – this fee is applied to products on a per kg basis. The fee will only be applied to products which are priced at a per kg rate, not products listed as items (e.g. A product listed as ‘1 bunch of parsley’ will not receive this fee)
Flat Percent – This fee is charged as a percentage of the total amount charged in the order.
Flat Rate (per order) – This fee is applied as standard fee to all orders, regardless of the size of the order.
Flexible Rate – This calculator is typically used for promotional discounts where you charge a reduced fee as the customer makes more purchases.
‘First Item Cost’: The fee charged for the first item in the order.
‘Additional Item Cost’: The fee charged for items beyond the first item.
‘Max Items’: The maximum number of items on which the fee will be applied. Items purchased beyond this amount will be not be charged the fee.
For example: If the first cost is $2, Additional Item Cost is $1 and the maximum items is three. If a customer orders 5 items, they will be charged $2 for the first item, $1 for the second and third, and no fee for the fourth and fifth.
Flat Rate (per item) – This fee is a constant fee, applied to products listed as ‘items’. (it will not be applied to products listed as per kg, or per L)
Price Sack – This fee is used to charge a discount on fees for orders which exceed a certain dollar amount.
‘Minimum Amount’: If the order’s total is below this amount, they will be charged the ‘Normal Amount’.
‘Discount Amount’: Orders which are equal to or greater than the minimum amount will be charged the ‘Discount Amount’.
Now that you've created your Enterprise Fee remember that it will not apply in your shop unless it's added to an order cycle. See the order cycle pages for producers or hubs for more details.
