We have a Configurable Product, a fitball, that includes 2 Child (Associated) Products.
Each Child Product has the following price values in Magento:
Product Price
Special Price (the value is the same for both Child Products)
Using this Configurable 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 Configurable 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.
For eBay: If you enable the Ignore Variations option in Selling Policy, a Configurable Product will be listed not as a Multi-Variational but as a Simple one. In this case, the price of the cheapest Child Product will be submitted to eBay.
As our Configurable Product is listed as a Multi-Variational one, the channel’s item price will range depending on the selected option. That is why the prices of Configurable Child Products are taken as a basis for Item Price calculation.
Calculations based on the selected Price Source
The final price of a Configurable Product 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 equal to the prices of options included in a Configurable Product.
In Selling Policy, we have the following settings:
The options of our Configurable Product will be submitted to the Channel with the following prices:
Fitball 55cm – $9.50
Fitball 65cm – $11.75
Special Price
With the Special Price selected as a source, the value set in the Special Price attribute of Configurable Child Products will be submitted to the Channel as a regular price.
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:
Since the Special Price value is the same for both options of our Configurable Product, it will be submitted to the Channel with the price of $8.10.
If the Special Price values of your Configurable Product’s options differ, the corresponding price values of each option will be sent to the Channel.
Magento Attribute
With the Magento Attribute selected as a price source, the price value for the Item will be taken from the selected Attribute of Configurable Child Products. For the Item to be listed on the Channel, Magento Attribute must contain a numeric value.
In Selling Policy, we have selected the Magento Attribute for our Child Products with the name “Channel Price” and the following price values:
Fitball 55cm
Fitball 65cm
The options of our Configurable Product will be equal to the corresponding Magento Attribute values and submitted to the Channel with the following prices:
Fitball 55cm – $12.00
Fitball 65cm – $13.00
If you select one of the Magento Attributes as a price source, but its value is not defined in Magento Product settings, the Item will not be listed on the Channel.
Calculations based on Price Change settings
Apart from the selected price source, the final price of a Configurable Product 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:
We need to calculate the Channel’s price for each Configurable Product’s option based on the Price Change settings.
The calculation formula is the following: Product Price value + Absolute Value Increase.
Fitball 55cm: $9.50 + 7 = $16.50
Fitball 65cm: $11.75 + 7 = $18.75
Case 2. Product Price + Percentage Decrease
In Selling Policy, Price Change is set to Percentage Decrease:
We need to calculate the Channel’s price for each Configurable Product’s option based on the Price Change settings.
The calculation formula is the following: Product Price value - Percentage Decrease.
Fitball 55cm: $9.50 - 40.5% = $5.65
Fitball 65cm: $11.75 - 40.5% = $6.99
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 Configurable 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 each Configurable Product’s option taking into account two factors:
The Product Price value of each Configurable Product’s option
Price Change settings
Fitball 55cm: Option’s Product Price + Absolute Value Increase = $9.50 + 3 = $12.50
Fitball 65cm: $11.75 + 3 = $14.75
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.
Fitball 55cm: Option’s Product Price with Price Change settings applied x VAT Rate (%) = $12.50 x 19% = $2.38
Fitball 65cm: $14.75 x 19% = $2.80
The final price for each Configurable Product’s option will be calculated according to the following formula:
(Product Price + Price Change) + VAT Rate value
Fitball 55cm: ($9.50 + 3) + $2.38 = $14.88
Fitball 65cm: ($11.75 + 3) + $2.80 = $17.55
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 each Configurable Product’s option taking into account two factors:
The Product Price value of each Configurable Product’s option
Price Change settings
Fitball 55cm: Option’s Product Price + Percentage Increase = $9.50 + 6% = $10.07 ~ $10.10
Fitball 65cm: $11.75 + 6% = $12.45
Then we need to calculate the VAT Rate value for each Configurable Product’s option:
Fitball 55cm: Option’s Product Price with Price Change settings applied x VAT Rate (%) = $10.10 x 19% = $1.92
Fitball 65cm: $12.45 x 19% = $2.37
The final price for each Configurable Product’s option will be calculated according to the following formula:
(Product Price + Price Change) + VAT Rate value
Fitball 55cm: ($9.50 + 6%) + $1.92 = $12.02
Fitball 65cm: ($11.75 + 6%) + $2.37 = $14.82
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