Understanding Merchant Designations in Cahoot
Cahoot uses different designations to categorize how merchants use the platform. Your designation determines which features and services are available to you, how your inventory is handled, and who fulfills your orders. This article explains each designation so you can confirm you're set up correctly.
Merchant Designations at a Glance
Cahoot merchants fall into two broad groups: Sellers, who use Cahoot for their own orders and inventory, and Shippers, who fulfill orders from a warehouse. Use the table below to find the designation that matches how your business operates.
| Designation | Group | Where Inventory Sits | Who Fulfills Orders |
| Label Software Seller | Seller | Your own warehouse | You fulfill all orders |
| Network Seller | Seller | Cahoot warehouses | Cahoot fulfills all orders |
| Optimized Seller | Seller | Split between both | Cahoot and you (hybrid) |
| CFP Shipper (Cahoot Fulfillment Partner) | Shipper | Your warehouse, owned by other sellers | You fulfill for Network Sellers |
| Extended Warehouse | Shipper | Your own multiple locations | You fulfill your own orders |
Seller Designations
Sellers are merchants who use Cahoot's services for their own orders and inventory. There are three primary seller types, distinguished by where inventory is stored and who ships the orders.
Label Software Seller
Label Software Sellers use Cahoot as shipping software only. Cahoot generates labels and rate shops carriers, but never touches your inventory.
- Uses Cahoot only for shipping labels
- Keeps all inventory at their own warehouse
- Fulfills all orders from their own location
- Does not send inventory to Cahoot facilities
Network Seller
Network Sellers outsource fulfillment entirely. You send inventory to Cahoot warehouses, and Cahoot's Fulfillment Partners pick, pack, and ship every order.
- Sends inventory to Cahoot warehouses for fulfillment
- Cahoot handles 100% of their order fulfillment
- Does not fulfill any orders themselves in Cahoot
- Focuses on sales while Cahoot manages logistics
Optimized Seller
Optimized Sellers run a hybrid model, combining the two approaches above. Cahoot fulfills orders for the SKUs you've sent to Cahoot warehouses, and you fulfill the rest from your own location.
- Uses a hybrid approach combining both methods above
- Cahoot fulfills some orders from Cahoot warehouses
- Merchant fulfills other orders from their own warehouse
- Cahoot only fulfills orders for SKUs you've sent to Cahoot (shared SKUs)
Shipper Designations
Shippers are merchants who fulfill orders from a warehouse they operate. The distinction between the two shipper types is whose orders you're shipping: other sellers' orders, or your own.
CFP Shipper (Cahoot Fulfillment Partner)
Cahoot Fulfillment Partners are warehouses in the Cahoot network that fulfill orders on behalf of Network Sellers.
- Warehouses in the Cahoot network that fulfill orders for Network Sellers
- Receives inventory from multiple sellers
- Ships orders on behalf of other merchants
Extended Warehouse
Extended Warehouse merchants operate more than one of their own facilities and use Cahoot to route orders to whichever location ships most efficiently.
- Merchants with multiple warehouse locations
- Uses Cahoot to optimize shipping by routing orders between their own facilities
- Primarily ships their own orders, not orders for other sellers
Important Notes About Your Designation
Designations are not always mutually exclusive, and they can change as your business changes.
- Merchants can use combinations of these designations based on their business needs.
- Your designation affects which features and services are available to you in the Cahoot portal.
- Understanding your merchant designation ensures you're using Cahoot's platform optimally for your specific fulfillment strategy.