If you disable the Dynamic Price option while creating a Bundle Product in Magento, you will have an opportunity to specify a fixed price for the Main (Parent) Bundle Product. Also, you will be able to indicate Price Difference (either amount or percent value) for each Simple (Associated) Product included in the Bundle.

Our Main Bundle Product has a fixed price of $72.00:

The Associated Bundle Products differ from the price of the Main Product by the following amount values (aka Price Difference):

*Headphones*option

Headphones – +$299.90

*Packaging*option

Standard Packaging – no price difference

Gift Packaging – +$6.65

A buyer can purchase a certain number of variations of a Bundle Product. Each variation is a combination of two Associated Products (in our case, one is taken from the *Headphones* option, the other – from the *Packaging *option). Thus, our Bundle Product has 2 available variations:

Headphones + Standard Packaging

Headphones + Gift Packaging

**The prices of these variations are taken as a basis for the final item price calculation.** As our Bundle Product is listed as a Multi-Variational one, the channel’s item price will range depending on the selected variation.

**For eBay: **If you enable the Ignore Variations option in Selling Policy, a Bundle Product will be listed not as a Multi-Variational but as a Simple one. In this case, the Variation with the lowest price and the Option with the lowest quantity will be submitted to eBay.

Using our Bundle Product as an example, we will figure out how to calculate Item Price displayed on Channels with different Magento Product and Selling Policy settings.

**Calculations based on the selected Price Source**

Apart from the selected Magento Price Type, the final price of a Bundle 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 prices for Bundle Product’s variations are calculated as the sums of the default Magento Price attribute values.

Let’s see how the Variation Price settings in Selling Policy affect the calculation of the Bundle Product’s price if you choose the *Product Price* as a source.

**Case 1. Product Price taken from Main Product**

In Selling Policy, it is set to use a *Product Price *from* Main Product*.

The final price for each Bundle Product’s variation is calculated as a sum of two values:

Product Price value of the Main Product

Price Difference values of Associated Products included in a particular variation

Headphones + Gift Packaging: $72.00 + $299.90 + $6.65 = $378.55

(where $72.00 is the * price value of the Main Product*, and the remaining two are

*)*

**Price Difference values of Associated Products**Headphones + Standard Packaging: $72.00 + $299.90 = $371.90

Here, the Price Difference for Standard Packaging is not taken into account since it is not specified.

**Case 2. Product Price taken from Associated Products**

In Selling Policy, it is set to use a *Product Price *from* Associated Products*.

In this case, Product Price values of Simple (Associated) Products included in a Bundle Product will override the Price Difference values:

These price values will be taken as a basis of item price calculation.

To calculate the final price for each Bundle Product’s variation, we need to sum up the prices of Associated Products included in a variation:

Headphones + Standard Packaging: $350.00 + $12.00 = $362.00

Headphones + Gift Packaging: $350.00 + $18.00 = $368.00

**Special Price**

With the Special Price selected as a source, the prices for Bundle Product’s variations are calculated as the sums of the corresponding Special Price values and sent as regular prices to the Channel.

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).

Now let’s see how the Variation Price settings in Selling Policy affect the calculation of the Bundle Product’s price if you choose the *Special Price* as a source.

**Case 1. Special Price taken from Main Product**

In Selling Policy, it is set to use a *Special Price *from* Main Product*.

Our Main Bundle Product has a Special Price set to 50%:

Let’s start with calculating the total price for each Bundle Product’s variation. To do it, we need to sum up Product Price values of Associated Products included in this variation.

Headphones + Standard Packaging: $72.00 + $299.90 = $371.90

Headphones + Gift Packaging: $72.00 + $299.90 + $6.65 = $378.55

For a more detailed explanation of how the Product Price for each Bundle Product’s variation is calculated, check out the Product Price.Case 1 section of this article.

Now we will calculate the final price for each variation taking into account the Special Price percent value of the Main Bundle Product.

Headphones + Standard Packaging: **Total Price for this variation - Special Price percent value** = $371.90 - 50% = $185.95

Headphones + Gift Packaging: $378.55 - 50% = $189.28

**Case 2. Special Price taken from Associated Products**

In Selling Policy, it is set to use a *Special Price *from* Associated Products*.

Special Price values of Simple (Associated) Products included in a Bundle Product will be taken as a basis of item price calculation. In our case, these values are the following:

Headphones

Standard Packaging

Gift Packaging

To calculate the final price for each Bundle Product’s variation, we need to sum up the Special Prices of Associated Products included in a variation.

Headphones + Standard Packaging: $315.00 + $7.00 = $322.00

Headphones + Gift Packaging: $315.00 + $9.00 = $324.00

**Magento Attribute**

With the Magento Attribute selected as a price source, the prices for Bundle Product’s variations are calculated as the sums of the corresponding values of the assigned Magento Attribute.

For the Item to be listed on the Channel, Magento Attribute must contain a numeric value.

Now let’s see how the Variation Price settings in Selling Policy affect the calculation of the Bundle Product’s price if you choose the *Magento Attribute *as a price source.

**Case 1. Magento Attribute taken from Main Product**

In Selling Policy, it is set to use a *Magento Attribute* value from *Main Product*.

We have selected a Magento Attribute with the name of “Channel Price”.

Our Main Bundle Product has the selected Magento Attribute set to $123.00:

The final price for each Bundle Product’s variation is calculated as a sum of two values:

Magento Attribute value of the Main Product

Price Difference values of Associated Products included in a particular variation

Headphones + Gift Packaging: $123.00 + $299.90 + $6.65 = $429.55

(where $123.00 is the * Magento Attribute value of the Main Product*, and the remaining two are

*)*

**Price Difference values of Associated Products**Headphones + Standard Packaging: $123.00 + $299.90 = $422.90

In this case, the Price Difference for Standard Packaging is not taken into account since it is not specified.

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.

**Case 2. Magento Attribute taken from Associated Products**

In Selling Policy, it is set to use a *Magento Attribute* value from *Associated Products*.

We have selected a Magento Attribute with the name of “Channel Price”.

Magento Attribute values of Simple (Associated) Products included in a Bundle Product will be taken as a basis of item price calculation. In our case, these values are the following:

Headphones

Standard Packaging

Gift Packaging

To calculate the final price for each Bundle Product’s variation, we need to sum up the Magento Attribute values of Associated Products included in a variation.

Headphones + Standard Packaging: $341.00 + $10.00 = $351.00

Headphones + Gift Packaging: $341.00 + $16.00 = $357.00

**Calculations based on Price Change settings**

Apart from the selected price source, the final price of a Bundle Product depends on *Price Change *settings in Selling Policy.

Let’s see how the Item Price will be calculated if we configure particular *Price Change* settings.

In Selling Policy, it is set to use a *Product Price *from* Main Product*. Price Change is set to *Absolute Value Increase*:

We need to calculate the final price for our Bundle Product’s each variation taking into account two factors:

The total Product Price of each variation (see the Product Price.Case 1 section of the article)

*Price Change*settings

Headphones + Standard Packaging: * Variation’s Product Price + Absolute Value Increase* = $371.90 + 5.25 = $377.15

Headphones + Gift Packaging: $378.55 + 5.25 = $383.80

To show you how the Price Change settings affect the results of Item Price calculation, we have selected the *Absolute Value Increase *option. Mind that this is just an example 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.

To see how the final item price will be calculated if you set to use the Product Price/Special Price/Magento Attribute from Associated Products, head over to the second part of the article.

**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 Bundle 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.

In Selling Policy, it is set to use *Product Price* from *Main Product*. Price Change is set to *Percentage 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 Bundle Product’s every variation taking into account two factors:

The total Product Price of each variation (see the Product Price.Case 1 section of the article)

*Price Change*settings

Headphones + Standard Packaging: * Variation’s Product Price + Percentage Increase* = $371.90 + 6% = $394.21

Headphones + Gift Packaging: $378.55 + 6% = $401.26

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 each Bundle Product’s variation:

Headphones + Standard Packaging: * Variation’s Product Price with Price Change settings applied x VAT Rate (%)* = $394.21 x 19% = $74.90

Headphones + Gift Packaging: $401.26 x 19% = $76.24

The final price for each variation of our Bundle Product will be calculated according to the following formula:

**(Product Price + Price Change) + VAT Rate value**

Headphones + Standard Packaging: ($371.90 + 6%) + $74.90 = $469.11

Headphones + Gift Packaging: ($378.55 + 6%) + $76.24 = $477.50

To see how the final item price will be calculated if you set to use the Product Price/Special Price/Magento Attribute from Associated Products, head over to the second part of the article.

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