Based on the provided reference, "PP delivery" likely refers to a shipping arrangement where the shipper prepays the shipping charges and then handles how those charges are passed on to the customer. To provide a comprehensive answer, we can explore different aspects of this concept:
Understanding Prepayment and Passing on Charges
The core of "PP delivery" lies in two main actions:
- Prepayment: The shipper initially covers the cost of shipping.
- Passing on Charges: The shipper subsequently recovers those shipping costs from the customer.
PP&A (Prepaid and Add) vs. Prepaid Shipping
The reference mentions "PP&A" which provides key insights. PP&A is when the shipper would prepay for the shipping charges and then pass those charges along to the customer. This is different from simply offering "prepaid" shipping, where the shipper covers the shipping costs and doesn't charge the customer extra for it.
Scenarios and Examples
Here are some practical scenarios to illustrate how "PP delivery" (or PP&A) might work:
- Online Retail: An online store calculates shipping costs based on weight, distance, and service level. The customer sees this shipping cost at checkout and pays it. The online store then uses these funds to prepay for the actual shipping label.
- B2B Sales: A manufacturer includes a line item for "Shipping & Handling" on their invoice to a distributor. They prepay the carrier, and recoup those costs from the distributor's payment.
Key Takeaways
| Feature | Description |
|---|---|
| Prepayment | Shipper pays the carrier for shipping initially. |
| Charge Recovery | Shipper passes the shipping cost on to the customer, often as a separate line item |
| Transparency | The customer is typically aware of the shipping costs. |
| Compared to Prepaid | Unlike fully "prepaid" shipping, the customer ultimately bears the shipping expense. |
In essence, "PP delivery" (or PP&A) is a cost-recovery method for shipping expenses, where the shipper handles the logistics but the customer foots the bill, often explicitly.
