We have a Simple Product with Custom Options, a T-shirt, with the Product Price set to $100.00:
The Special Price is set to $70.00:
The prices of the included custom options differ from the price of our Simple Product by the following amount/percent values. Further in the article, we will refer to these values as Price Difference:
‘L’ option – +10%
‘M’ option – +$5.95
‘S’ option – no price difference
Using this product as an example, we will figure out how to calculate Item Price displayed on Channels with different Selling Policy settings.
Here is an overview of basic price settings in Selling Policy:
Variation Price settings in Selling Policy do not affect the final price of a Simple Product. They are relevant for a Bundle Product only.
As for Amazon and Walmart, you can adjust the initial Price source value using the Price Change field. In this field, you provide an amount/percent value you want to increase/decrease the final Channel Price for. Add the “+” or “-” sign to the provided value depending on whether you need to increase or decrease the price.
In the Price Change field, you can also specify the Currency rate value by which the final Amazon/Walmart price will be multiplied.
If you enable the Ignore Variations option in Selling Policy, a Simple Product with Custom Options will be listed not as a Multi-Variational but as a Simple one on the Channel. Thus, the price calculation rules of a Simple Product will be applied to it.
Our Simple Product with Custom Options is listed as a Multi-Variational one on the Channel. There, the Item Price will vary depending on the selected option. That is why it is important to calculate the standard channel’s price for each custom option first.
Calculations based on the selected Price Source
The final price of Simple Product with Custom Options depends on one of the selected Price sources in Selling Policy:
Product Price
Special Price
Magento Attribute
Product Price
With the Product Price selected as a source, the price on the Channel will be taken from the default Magento Price attribute. The prices of the Simple Product and its Custom Options are taken into account when calculating the final Product Price.
In Selling Policy, we have the following settings:
Firstly, you need to calculate the standard channel’s price for each custom option of our Product. To do it, sum up the Product Price value and the Price Difference set for this option in Magento.
Standard channel’s Price for 'L' option = Product Price value + Price Difference for 'L' option = $100.00 + 10% = $110.00
Standard channel’s Price for 'M' option = $100.00 + $5.95 = $105.95
Standard channel’s Price for 'S' option = $100.00 (equal to the Product Price value since there is no Price Difference set in Magento)
It is important to remember or note down the standard Channel’s price values for each option. They will be used in further calculations based on the Price Change settings.
Special Price
With the Special Price selected as a source, the value set in the Special Price attribute of the corresponding Magento Product will be submitted to the Channel as a regular price. The prices of the Simple Product and its Custom Options are taken into account when calculating the final Special Price.
If the Special Price source is selected, but its value is not defined in Magento Product settings or its From/To dates have already expired, Product Price will be used instead.
If you only enter the Special Price value, without specifying From/To dates, and save the Product, Magento will automatically fill in the From date field with the current date:
Therefore, since the To date is not specified, the Special Price will be active on the Channel as soon as the From date comes and further on (until you disable the Special Price or change the From/To dates).
In Selling Policy, we have the following settings:
Firstly, you need to calculate the standard channel’s price for each custom option of our Product. To do it, sum up the Special Price value and the Price Difference set for this option in Magento.
Standard channel’s Price for 'L' option = Special Price value + Price Difference for 'L' option = $70.00 + 10% = $77.00
Standard channel’s Price for 'M' option = $70.00 + $5.95 = $75,95
Standard channel’s Price for 'S' option = $70.00 (equal to the Special Price value since there is no Price Difference set in Magento)
Magento Attribute
With the Magento Attribute selected as a price source, the price value for the Item will be taken from the assigned Attribute. For the Item to be listed on the Channel, Magento Attribute must contain a numeric value.
To enable automatic Currency conversion, make sure that the Price value is set to be taken from Magento Attribute with Price Catalog Input Type:
If you choose another Catalog Input Type, the relevant Magento Attribute value will not be automatically converted.
In Selling Policy, we have selected a Magento Attribute with the name of “Channel Price” and the price value of $80.00:
Firstly, you need to calculate the standard channel’s price for each custom option of our Product. To do it, sum up the Magento Attribute value and the Price Difference set for this option in Magento.
Standard channel’s Price for 'L' option = Magento Attribute value + Price Difference for 'L' option = $80.00 + 10% = $88.00
Standard channel’s Price for 'M' option = $80.00 + $5.95 = $85.95
Standard channel’s Price for 'S' option = $80.00 (equal to the Magento Attribute value since the Price Difference is not specified in Magento Product settings)
Calculations based on Price Change settings
Apart from the selected price source, the final price of a Simple Product with Custom Options depends on Price Change settings in Selling Policy.
To show you how the Price Change settings affect the results of Item Price calculation, in our use cases below we have selected the Product Price source and such options as Absolute Value Increase (case 1) and Percentage Decrease (case 2).
Mind that these are just examples and you are free to select any of the four Price Change options you want and set any preferred value for it:
Besides, instead of the Product Price source, you can choose the Special Price or Magento Attribute source – the price calculation process will stay the same.
Case 1. Product Price + Absolute Value Increase
In Selling Policy, Price Change is set to Absolute Value Increase:
Let’s calculate the Channel’s price for each custom option of our Product based on the Price Change settings.
To see how the Standard Channel Price of each custom option is calculated, check out the Product Price section of the article.
Channel’s Price for 'L' option = Standard channel’s Price for 'L' option + Absolute Value Increase = $110.00 + 7 = $117.00
Channel’s Price for 'M' option = $105,95 + 7 = $112.95
Channel’s Price for 'S' option = $100.00 + 7 = $107.00
Case 2. Product Price + Percentage Decrease
In Selling Policy, Price Change is set to Percentage Decrease:
Let’s calculate the Channel’s price for each custom option of our Product based on the Price Change settings.
Channel’s Price for 'L' option = Standard channel’s Price for 'L' option - Percentage Decrease = $110.00 - 40.5% = $65.45
Channel’s Price for 'M' option = $105,95 - 40.5% = $63.04
Channel’s Price for 'S' option = $100.00 - 40.5% = $59.50
VAT Rate Included
In Selling Policy, it is possible to indicate the VAT Rate – percent value that will be added to the final price of your Product.
The VAT rate sent by M2E Pro is perceived as a proper VAT rate only by eBay. Click here to learn more.
Amazon and Walmart consider the VAT rate sent by M2E Pro in a different way – as an additional price increase.
Let’s see how the Item Price will be calculated if we add the VAT Rate value and configure particular Price Change settings.
Case 1. Product Price + VAT Rate + Absolute Value Increase
In Selling Policy, Product Price is selected as a source. Price Change is set to Absolute Value Increase. VAT Rate is set to 19%. The Add VAT% on top of Price option is enabled.
Using the Add VAT% on top of Price option in eBay Selling Policy, you can either:
- add the VAT rate on top of the Item Price (choose “Yes”);
- include the VAT rate in the Item Price (choose “No”).
The first step is to calculate the price for our Product’s each custom option taking into account two factors:
The standard Channel’s price of each custom option based on the Product Price value (see the Product Price section of the article)
Price Change settings
'L' option: Option’s Product Price + Absolute Value Increase = $110.00 + 3 = $113.00
'M' option: $105.95 + 3 = $108.95
'S' option: $100.00 + 3 = $103.00
Instead of the Product Price source, you are free to choose the Special Price or Magento Attribute source – the price calculation process will stay the same.
Then we need to calculate the VAT Rate value for our Product’s each custom option:
'L' option: Option’s Product Price with Price Change settings applied x VAT Rate (%) = $113.00 x 19% = $21.47
'M' option: $108.95 x 19% = $20.70
'S' option: $103.00 x 19% = $19.57
The final price for our Product’s each custom option will be calculated according to the following formula:
(Product Price + Price Change) + VAT Rate value
'L' option: ($110.00 + 3) + $21.47 = $134.47
'M' option: ($105.95 + 3) + $20.70 = $129.65
'S' option: ($100.00 + 3) + $19.57 = $122.57
Case 2. Product Price + VAT Rate + Percentage Increase
In Selling Policy, Product Price is selected as a source. Price Change is set to Percentage Increase. VAT Rate is set to 19%. The Add VAT% on top of Price option is enabled.
The first step is to calculate the Price for our Product’s each custom option taking into account two factors:
The standard Channel’s price of each custom option based on the Product Price value (see the Product Price section of the article)
Price Change settings
'L' option: Option’s Product Price + Percentage Increase = $110.00 + 6% = $116.60
'M' option: $105.95 + 6% = $112.31
'S' option: $100.00 + 6% = $106.00
Then we need to calculate the VAT Rate value for our Product’s each custom option:
'L' option: Option’s Product Price with Price Change settings applied x VAT Rate (%) = $116.60 x 19% = $22.15
'M' option: $112.31 x 19% = $21.34
'S' option: $106.00 x 19% = $20.14
The final price for our Product’s each custom option will be calculated according to the following formula:
(Product Price + Price Change) + VAT Rate value
'L' option: ($110.00 + 6%) + $22.15 = $138.75
'M' option: ($105.95 + 6%) + $21.34 = $133.65
'S' option: ($100.00 + 6%) + $20.14 = $126.14
Was this article helpful?
That’s Great!
Thank you for your feedback
Sorry! We couldn't be helpful
Thank you for your feedback
Feedback sent
We appreciate your effort and will try to fix the article