Pricing

Before starting with creating a product feed or adding products and channels in ChannelEngine,one of the first thing you should think about is pricing. While ChannelEngine offers lots of tool to manipulate prices (such as price rules or the repricer if the channel supports it), you will always need to think about what price you want to use a base price for selling on marketplaces. We can always supply you with advice, but the only person who can determine the minimum price and necessary margins, is you.

We generally expect 3 different prices:

  • Purchase Price: the price you pay your supplier for the product. This price can be useful in case you want to use our repricer but want to always have a minimum margin to take into account. This purchase price (if available) will also be used to calculate a 'margin' in ChannelEngine, which can be used in business rules.
  • Price: your basic selling price, which you would also use if the product is directly sold via your own webshop. This should include your own profit margin, but does not necessarily have to include the commission / fee from marketplaces or our own fee.
  • Catalog Price / MSRP: the ‘manufacturer suggested retail price’ is the price the original manufacturer suggests the price should be. This is not mandatory, but can be very useful in case you want to use ‘from - for’ prices on marketplaces that support this feature.

Of these 3, only Price is mandatory, however the other 2 prices can be very useful in case of repricing or submitting ‘discount’-prices. It is possible to submit multiple additional price attributes, for example if you want to use a different base price on every Amazon EU portal. Just submit these price attributes as extra attributes in your feed or API-call.

Please note: before starting with a marketplace, always compare your purchase prices for a few of your ‘fast selling products’ with the average price on that particular marketplace. If there is a very low or no margin, it will almost certainly not be worth it to start selling on that specific marketplace as you wont make a profit.

This is very relevant for drop shipping, where purchase prices on average are pretty high.