Tier Price Calculation

Modified on Sat, 30 Sep, 2023 at 4:36 PM

Below you can find the details on how the Product Tier Price is calculated (based on Amazon B2B Quantity Discounts applying).

The article is suitable for M2E Pro [Magento v1.x] and M2E Pro [Magento v2.x].

How does Tier Pricing work?

M2E Pro Product Tier Price is based on the default Magento price functionality Tier Pricing, which allows offering quantity discounts to your Buyers.

Find the Tier Price Magento Attribute on the Magento Product Information page > Price tab and provide the required settings:

select a Website the tier pricing will be applied;
select a Customer Group for whom the tier price discount will be available;
specify a Product Quantity to be ordered for the discount applied;
specify an adjusted Price for the Item.

To apply the Tier Price settings the next conditions should be met:

Discount option in Selling Policy should be set as Product Tier Price;

selected Customer Group in the Selling Policy should correspond to the Customer Group in the Tier Price Attribute settings;

Magento Store View of your Listing should correspond to the Website in the Tier Price Attribute settings;

After the required number of Items are added to the shopping cart, the customer gets the discounted price you specified.

How is the Tier Price calculated?

The calculation of the Tier Price depends on the Magento Product Type and Selling Policy settings. Please learn the details on how the Tier Price is calculated below.

Simple Product

Magento Simple Product has the next Price settings:

In the Selling Policy it is set to use:

The Variation Price Source settings (Main Product/Associated Products mode) do not affect the final Price of the Simple Product.

The Item will be listed with the Price 12,5 £.

As soon as the customer adds 5 and more items to the shopping cart, the discounted price 10 £ specified for the quantity 5 tier will be applied.

Discounted Price = Product Tier Price = 10 £

Simple Product with Custom Options

Simple Product with Custom Options allows offering product variations that do not depend on attributes. The final Price of the Item is calculated considering the specified Surcharge for each related Option.

Simple Product with Custom Options has the next Price settings:

The Surcharges for the related Custom Options are indicated as:

In the Selling Policy it is set to use:

The Variation Price Source settings (Main Product/Associated Products mode) do not affect the final Price of the Simple Product with Custom Options.

The B2B Price will change depending on the selected option from 14,7 £ to 16 £.

As soon as the customer adds 2 and more items to the shopping cart, the Product Tier price 8 £ + Option Surcharge will be applied:

for the 'Blue' option

Discounted Price = Product Tier Price (8 £) + Option Surcharge (2 £) = 10 £

for the 'Purple' option

Discounted Price = Product Tier Price (8 £) + Option Surcharge (8 £ * 5%) = 8,4 £

Configurable Product

Magento Configurable Product (Parent) has the next Price settings:

There are several Associated (Child) Products:

The Child Products have the next settings:

Example 1 Variation Price Source from the Main Product

In the Selling Policy it is set to use:

The B2B Price will vary depending on the selected variation from 9 £ to 15,4 £.

Given that the Main Product mode is set, the Tier Price value will be taken from the Parent Product considering the specified Child Product Surcharge:

as soon as the customer adds 50 and more items of 'Simple for Configurable 1' (Manufacturer: A, Color: Brown) to the shopping cart, the Parent Product Tier price 7 £ + Child Product Surcharge will be applied.

Discounted Price = Parent Product Tier Price (7 £) + Child Surcharge (7 £ * 10%) = 7,7 £

as soon as the customer adds 50 and more items of 'Simple for Configurable 2' (Manufacturer: B, Color: Green) to the shopping cart, the Parent Product Tier price 7 £ + Child Product Surcharge will be applied.

Discounted Price = Parent Product Tier Price (7 £) + Child Surcharge (-5 £) = 2 £

as soon as the customer adds 50 and more items of 'Simple for Configurable 3' (Manufacturer: B, Color: Brown) to the shopping cart, the Parent Product Tier price 7 £ will be applied. The Child Product Surcharge is not set for this Variation.

Discounted Price = Parent Product Tier Price (7 £) = 7 £

Example 2 Variation Price Source from the Associated Products

The B2B Price will be variable depending on the selected variation from 11 £ to 20 £.

Provided that the Associated Products mode is set, the Tier Price value will be taken from the Child Products:

as soon as the customer adds 25 and more items of 'Simple for Configurable 1' (Manufacturer: A, Color: Brown) to the shopping cart, the Child Product Tier Price will be applied.

Discounted Price = Child Product Tier Price (10 £) = 10 £

as soon as the customer adds 15 and more items of 'Simple for Configurable 2' (Manufacturer: B, Color: Green) to the shopping cart, the Child Product Tier Price will be applied.

Discounted Price = Child Product Tier Price (8 £) = 8 £

for the 'Simple for Configurable 3' (Manufacturer: B, Color: Brown) the Child Product Price will be indicated. Since there are no Tier Price settings for this Variation.

Child Product Price = 11 £

Grouped Product

The Price value for the Grouped Product will be taken from Associated Products, therefore it will vary depending on the selected variation.

Associated Products of Magento Grouped Product have the next Price settings:

In the Selling Policy it is set to use:

The Variation Price Source settings (Main Product/Associated Products mode) do not affect the final Price of the Grouped Product.

The Item Price will change depending on the selected variation from 6 £ to 32 £.

Given that the Tier Pricing is available only for the second option of the Grouped Product, once the customer adds 7 or more items of 'Simple for Grouped 2' variation to the shopping cart, the discounted price 25 £ specified for the quantity 7 tier will be applied instead of 32 £.

Discounted Price = Product Tier Price = 25 £

Bundle Product

The Tier Price of the Bundle Product is a percentage value the Bundle Product Price will be decreased for. Besides, the final price also depends on the pricing type (fixed or dynamic) of the Bundle Product, as well as the Variation Price Source settings (Main Product/Associated Products).

Bundle Product with Fixed Price has the next Price settings:

The Surcharges of Bundle Items are the next:

In the Selling Policy it is set to use:

Main Product mode

or Associated Product mode

Example 1 Bundle Product with Fixed Price + Variation Price Source from the Main Product

as soon as the customer adds 7 and more items of the 'Simple for Bundle 1 + for Bundle 1' to the shopping cart, the Tier Price settings will be applied.

Discounted Price = [Parent Product Price (60 £) - Parent Product Price (60 £) * Parent Tier Price (50 %)] +
[Child Surcharge (10 £) - Child Surcharge (10 £) * Parent Tier Price (50 %)] +
[(Child Surcharge (10 %) * Parent Product Price (60 £)) - ((Child Surcharge (10 %) * Parent Product Price (60 £)) * Parent Tier Price (50 %))] = 38 £

as soon as the customer adds 7 and more items of the 'Simple for Bundle 2 + for Bundle 2' to the shopping cart, the Tier Price settings will be applied.

Discounted Price = [Parent Product Price (60 £) - Parent Product Price (60 £) * Parent Tier Price (50 %)] +
[Child Surcharge (6 £) - Child Surcharge (6 £) * Parent Tier Price (50 %)] +
[Child Surcharge (20 £) - Child Surcharge (20 £) * Parent Tier Price (50 %)] = 43 £

as soon as the customer adds 7 and more items of the 'Simple for Bundle 3 + for Bundle 1' to the shopping cart, the Tier Price settings will be applied.

Discounted Price = [Parent Product Price (60 £) - Parent Product Price (60 £) * Parent Tier Price (50 %)] +
[Child Surcharge (7 £) - Child Surcharge (7 £) * Parent Tier Price (50 %)] +
[(Child Surcharge (10 %) * Parent Product Price (60 £)) - ((Child Surcharge (10 %) * Parent Product Price (60 £)) * Parent Tier Price (50 %))] = 36,5 £

Example 2 Bundle Product with Fixed Price + Variation Price Source from the Associated Products

as soon as the customer adds 7 and more items of the 'Simple for Bundle 1 + for Bundle 1' to the shopping cart, the Tier Price settings will be applied.

Discounted Price = [Child Product Price (10 £) - Child Product Price (10 £) * Parent Tier Price (50 %)] +
[Child Product Price (20 £) - Child Product Price (20 £) * Parent Tier Price (50 %)] = 15 £

as soon as the customer adds 7 and more items of the 'Simple for Bundle 2 + for Bundle 2' to the shopping cart, the Tier Price settings will be applied.

Discounted Price = [Child Product Price (15 £) - Child Product Price (15 £) * Parent Tier Price (50 %)] +
[Child Product Price (30 £) - Child Product Price (30 £) * Parent Tier Price (50 %)] = 22,5 £

as soon as the customer adds 7 and more items of the 'Simple for Bundle 3 + for Bundle 1' to the shopping cart, the Tier Price settings will be applied.

Discounted Price = [Child Product Price (8 £) - Child Product Price (8 £) * Parent Tier Price (50 %)] +
[Child Product Price (20 £) - Child Product Price (20 £) * Parent Tier Price (50 %)] = 14 £

Bundle Product with Dynamic Price has the next Price settings:

The Price settings of each Bundle Item are the next:

In the Selling Policy it is set to use:

Main Product mode

or Associated Product mode

Example 3 Bundle Product with Dynamic Price + Variation Price Source from the Main Product

The Discounted Price for the Bundle Product with dynamic pricing and the Main Product mode applied will be calculated based on the Special Price if it is specified.

as soon as the customer adds 5 and more items of the 'Simple for Bundle 1 + for Bundle 1' to the shopping cart, the Tier Price settings will be applied.

Discounted Price = [Child Special Price (7 £) - Child Special Price (7 £) * Parent Tier Price (30 %)] +
[Child Special Price (20 £) - Child Special Price (20 £) * Parent Tier Price (30 %)] = 18,9 £

as soon as the customer adds 5 and more items of the 'Simple for Bundle 2 + for Bundle 2' to the shopping cart, the Tier Price settings will be applied.

Discounted Price = [Child Special Price (12 £) - Child Special Price (12 £) * Parent Tier Price (30 %)] +
[Child Special Price (30 £) - Child Special Price (30 £) * Parent Tier Price (30 %)] = 29,4 £

as soon as the customer adds 5 and more items of the 'Simple for Bundle 3 + for Bundle 1' to the shopping cart, the Tier Price settings will be applied.

Discounted Price = [Child Special Price (5 £) - Child Special Price (5 £) * Parent Tier Price (30 %)] +
[Child Special Price (20 £) - Child Special Price (20 £) * Parent Tier Price (30 %)] = 17,5 £

Example 4 Bundle Product with Dynamic Price + Variation Price Source from the Associated Products

as soon as the customer adds 5 and more items of the 'Simple for Bundle 1 + for Bundle 1' to the shopping cart, the Tier Price settings will be applied.

Discounted Price = [Child Product Price (10 £) - Child Product Price (10 £) * Parent Tier Price (30 %)] +
[Child Product Price (20 £) - Child Product Price (20 £) * Parent Tier Price (30 %)] = 21 £

as soon as the customer adds 5 and more items of the 'Simple for Bundle 2 + for Bundle 2' to the shopping cart, the Tier Price settings will be applied.

Discounted Price = [Child Product Price (15 £) - Child Product Price (15 £) * Parent Tier Price (30 %)] +
[Child Product Price (30 £) - Child Product Price (30 £) * Parent Tier Price (30 %)] = 31,5 £

as soon as the customer adds 5 and more items of the 'Simple for Bundle 3 + for Bundle 1' to the shopping cart, the Tier Price settings will be applied.

Discounted Price = [Child Product Price (8 £) - Child Product Price (8 £) * Parent Tier Price (30 %)] +
[Child Product Price (20 £) - Child Product Price (20 £) * Parent Tier Price (30 %)] = 19,6 £

Downloadable Product

Downloadable Product allows offering digital virtual goods to your Buyers.

If your virtual product consists of several parts, you can choose to sell it as a single item or make each link/file to be purchased separately.

sold as a Single Item

Magento Downloadable Product has the next Price settings:

In the Selling Policy it is set to use:

The Variation Price Source settings (Main Product/Associated Products mode) do not affect the final Price of the Simple Product.

The Item will be listed with the Price 11 £.

As soon as the customer adds 3 and more items to the shopping cart, the discounted price 7 £ specified for the quantity 3 tier will be applied.

Discounted Price = Product Tier Price = 7 £

sold as a Variational Item

Enable the 'Links can be purchased separately' option in your Downloadable Product to sell it as a Variational one.

In this case, the final Item Price is calculated considering the Surcharge of each link/file included.

Magento Downloadable Product has the following Price settings:

The Surcharges for the links/files are indicated as:

In the Selling Policy it is set to use:

The Variation Price Source settings (Main Product/Associated Products mode) do not affect the final Price of the Simple Product with Custom Options.

The B2B Price will change depending on the selected option from 10 £ to 13 £.

As soon as the customer adds 3 and more items to the shopping cart, the Product Tier price 7 £ + Option Surcharge will be applied:

for the 'file' option

Discounted Price = Product Tier Price (7 £) + Option Surcharge (-1 £) = 6 £

for the 'url' option

Discounted Price = Product Tier Price (7 £) + Option Surcharge (2 £) = 9 £