E-Commerce Pricing

Owned by Andres Toledo, created
Last updated: Aug 16, 2024
8 min read

In this article you will learn about how pricing works in Komet’s E-Commerce according to each inventory type.

User Roles: Admin, Sales Manager, and Setup.

Before you begin with E-Commerce Pricing, we recommend you learn about Core System Pricing since most of the factors considered for E-Commerce come from a correct setup in your core system.

How Does E-Commerce Pricing Work?

When the system calculates the prices for products in the e-commerce, the price displayed may vary depending on the following factors:

  • Customer Settings.

  • Company Settings.

  • E-Commerce Settings.

  • Inventory type.

  • Price setup.

  • Markups.

  • Additional charges.

  • Price Lists. To learn about price list types and the inventories they apply to, read Types of Price Lists.

Additionally, the system follows a specific hierarchy when calculating the product’s price for E-Commerce. In the following sections, you will find detailed explanations of each Inventory type and how the pricing logic works for products originating from it.

Figure 1: This is the order that the system follows when defining the product prices in E-Commerce (see definitions below)

Definitions

  • Base Price. Unit price that is set in the pricing screen or with a price list without markups, additional charges, or FOB charges.

  • Markups. Price modifiers that are set at the customer level. They can add or subtract from the price and be set in percentage or amount. There are three types of Markups:

    • Sell-Fast. Vendors usually use this discount to promote products that must be sold as soon as possible. It applies to Open Market Boxes.

    • E-Commerce*. This markup applies to products sold through e-commerce and to all inventory types.

    • Price B Markup*. This markup applies to Type B Customers. It applies to Open Market and Future Sales inventories.

  • FOB. Freight On Board. This charge includes the Fuel Surcharge and the Outbound Freight costs.

  • Grouping. When there are identical products with different prices, the system groups them into a single line and displays the highest price of the grouped products.

  • Call Icon. If the product has no price, the system displays a telephone icon that tells the customer to contact the vendor to request a price.

*Only one of these markups can be applied to the price simultaneously.

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Grouping in E-Commerce

Products from On-Hand Inventory, Future Inventory, K2K (on-hand), and K2K (future) Inventories are each grouped into separate lines in e-commerce even when the products are identical(1). This creates excessive lines and may allow savvy shoppers to circumvent FIFO of your inventory.

This will be updated to the following after the Valentine’s season of 2024: 

In the proposed process, these products would be grouped and displayed as one line(2) in the e-commerce grid. This simplifies the grid for shoppers and ensures that the system can control FIFO inventory rules.

(1)The Komet system considers two items to be identical when the following specifications match:

  • Product Description

  • Unit Price

  • Unit type

  • Units per Box

  • Stems per Bunch

  • Box type

  • Vendor (This match is conditional… If you do not display the Vendor in your e-commerce, then each Vendor's products will be separately grouped using the same rule)

(2)Sales managers may still intentionally separate individual products by differentiating the price of individual lot numbers.

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Open Market Boxes

When the system calculates the prices for Open Market Boxes, it will use the following variables to calculate the final price:

Step One: Settings

The following settings can affect the pricing calculation of the Open Market Inventory:

  • Customer settings: 

    • Landed Cost as Price. When the customer has this setting enabled, the system will use the landed cost as a price.

    • Default Customer Type. Depending on if the customer is type A or B, the system will use a different process to calculate the base price.

    • Price B Markup. When the customer is type B, and there is no price B from manual input, the system will use the markup set for the customer and add it to the base price.

  • Company Settings:

    • Price Lists. The system will check for assigned or active price lists that can dictate the price.

  • E-Commerce Settings:

Step Two: Pricing Hierarchy

The system will check for the following conditions when defining the price. When one of the options meets the criteria, the system will use that option to define the price in the e-commerce:

  1. Landed Cost as Price.

  2. Customer Type A. For type A customers, the system will check for the following prices:

    1. Web Price. If a web price is set for the product, the system will use this price.

    2. Price A. If there is an existing price A set for the product, the system will take this price.

    3. No Price. If there is no price, the system displays no price, and an icon prompts the user to call the vendor to request a quote.

  3. Customer Type B. For type B customers, the system will check for the following prices:

    1. Price List M or All. If there is an active and associated Open Market (M) or All type price list, the system will use this price.

    2. Master Price List. If there is an active master price list, the system will use this price.

    3. Web Price. If a web price is set for the product, the system will use this price.

    4. Price B. If there is an existing price B set for the product, the system will take this price.

    5. Price B (Manual input). If an existing price B is manually set for the product, the system will take this price.

    6. No price. If there is no price, the system displays no price, and an icon prompts the user to call the vendor to request a quote.

Step Three: Markups

After the system defines the price, three types of markups can be applied to the price:

  • Sell Fast Markup.

  • E-Commerce Markup*.

  • Price B Markup*.

*Only one of these markups can be applied to the price simultaneously.

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Open Market Units

When the system calculates the prices for Open Market Units, it will use the following variables to calculate the final price:

Step One: Settings

The following settings can affect the pricing calculation of the Open Market Inventory:

  • Customer settings: 

    • Landed Cost as Price. When the customer has this setting enabled, the system will use the landed cost as a price.

    • Default Customer Type. Depending on whether the customer is type A or B, the system will use a different process to calculate the base price.

  • Company Settings:

    • Price Lists. The system will check for assigned or active price lists that can dictate the price.

  • E-Commerce Settings:

    • Grouping Rules. Show Vendor Customer E-Commerce Setting

    • Ship Date Selection. Prices can vary depending on the combination of the selected shipping date and aging settings of products.

Step Two: Pricing Hierarchy

The system will check for the following conditions when defining the price. When one of the options meets the criteria, the system will use that option to define the price in the e-commerce:

  1. Landed cost as price. When the customer has this setting enabled, the system will use the landed cost as a price.

  2. Customer Type A.

    1. Unit Price.

    2. No price + Call Icon. If there is no price, the system displays no price, and an icon prompts the user to call the vendor to request a quote.

  3. Customer Type B.

    1. Price List M or All. If there is an active and associated Open Market (M) or All type price list, the system will use this price.

    2. Master Price List. If there is an active master price list, the system will use this price.

    3. Unit Price.

    4. No price. If there is no price, the system displays no price, and an icon prompts the user to call the vendor to request a quote.

Step Three: Markups

After the system defines the price, two types of markups can be applied to the price:

  1. E-Commerce Markup*

  2. Price B Markup*

*Only one of these markups can be applied to the price simultaneously.

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Future Sales

Step One: Settings

Settings that affect the pricing of Future Sales Inventory

  • Customer Settings: 

    • Landed Cost as Price. When the customer has this setting enabled, the system will use the landed cost as a price.

  • Company Settings:

    • Price Lists. The system will check for an assigned or active Future Sales price list that can dictate the price.

    • Product Price Reminder. If this setting is enabled, the system will use the last product price recorded.

    • Days set in the Override.

  • E-Commerce Settings:

    • Grouping Rules. Show Vendor Customer E-Commerce Setting

    • Ship Date Selection. Prices can vary depending on the combination of the selected shipping date and aging settings of products.

Step Two: Pricing Hierarchy

The system will check for the following conditions when defining the price. When one of the options meets the criteria, the system will use that option to define the price in the e-commerce:

  1. Landed Cost as Price. When the customer has this setting enabled, the system will use the landed cost as a price.

  2. Product Price Reminder. If this setting is enabled, the system will use the last product price recorded.

  3. Base Price. The system will use the Open Market Price.

  4. Price Lists. The system will check for assigned or active price lists that can dictate the price and apply the first one that applies in the following order:

    1. Prebook

    2. Season

    3. All

  5. Master Price List. When there were no other active price lists, and there is an active season in the master price list, the system will use this one instead.

  6. Purchase Order Item Price. The system will use the Item Price from the Purchase Order.

  7. No price. If there is no price, the system displays no price, and an icon prompts the user to call the vendor to request a quote.

Step Three: Markups

After the system defines the price, two types of markups can be applied to the price:

  1. E-Commerce Markup*

  2. Price B Markup*

*Only one of these markups can be applied simultaneously.

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Vendor Availability

When the system calculates the prices for Vendor Availability products, it will use the following variables to calculate the final price:

Step One: Settings

Settings that affect the pricing of Future Sales Inventory:

  • Company Settings:

    • Price and Costs Lists

  • E-Commerce Settings:

    • Grouping Rules: Show Vendor Customer E-Commerce Setting

    • Ship Date Selection

Step Two: Pricing Hierarchy

The system will check for the following conditions when defining the price. When one of the options meets the criteria, the system will use that option to define the price in the e-commerce:

  1. Price List M or All. If there is an active and associated Open Market (M) or All type price list, the system will use this price.

  2. Master Price List. If there is an active master price list with an active season, the system will use this price.

  3. VA Price. The system will use the Vendor Availability price.

  4. No price. If there is no price, the system displays no price, and an icon prompts the user to call the vendor to request a quote.

Step Three: Markups

Only the E-Commerce Markup applies to the VA Inventory.

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K2K

When the system calculates the prices for K2K products, it will use the following variables to calculate the final price:

Step One: Settings

Settings that affect the pricing of K2K Inventory

  • Company Settings:

    • Company GPM. The system will use the default company’s GPM to calculate the price.

  • E-Commerce Settings:

    • Grouping Rules. Show Vendor Customer E-Commerce Setting

    • Ship Date Selection. Prices can vary depending on the combination of the selected shipping date and aging settings of products.

    • Ship Via Selection. Depending on the selected ship via, the price may vary.

    • K2K GPM. The system will use the set K2K GPM to calculate the final price.

Step Two: Pricing Hierarchy

The system will check for the following conditions when defining the price. When one of the options meets the criteria, the system will use that option to define the price in the e-commerce:

  1. Ship Via Warehouse.

    1. VA Price. The system will use the Vendor Availability price.

    2. K2K GPM. The system will calculate the price using the base price and the default company’s K2K GPM.

    3. Company GPM. The system will use the base price and the default company’s GPM to calculate the price.

    4. No price + Call Icon. If there is no price, the system displays no price, and an icon prompts the user to call the vendor to request a quote.

  2. Ship Via Grower.

    1. K2K GPM. The system will calculate the price using the base price and the default company’s K2K GPM.

    2. Company GPM. The system will use the base price and the default company’s GPM to calculate the price.

    3. No price. If there is no price, the system displays no price, and an icon prompts the user to call the vendor to request a quote.

Step Three: Markups

Only the E-Commerce Markup applies to the K2K Inventory.

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