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GLOSSARY

Price list

A list of the current prices of items on sale


A price list is a set of prices to be linked to all the SKUs of a specific market. It’s the tool that defines your ecommerce pricing strategy. It is through its price list that the related market can establish the price of every single good or service you’re going to sell.

The price lists you create while setting up your Commerce Layer’s Organization are one of the key elements of a Market. A specific market can be associated with only one price list. This is the most common reason why you might need more than one market inside your organization. Based on where, how and to whom you’re going to sell, you will need different price lists.

A Commerce Layer’s price list is defined by three simple pieces of data:

  • a name (the internal identifier for this resource within your organization),
  • a code (the one associated with the currency used for this specific price list)
  • a boolean option which clarifies if the prices listed include taxes or not, according to the tax system of the country you are selling in. If a Tax Calculator has been configured, the related taxes are calculated when placing each new order.

The Prices that define a price list can be entered through Commerce Layer’s backend. You can manage them through an external system as well. In this case, it will then be possible to import all these prices and populate a selected price list.

Examples

When you set up your organization, there are a few instances in which you need to create more than one price list. All these price lists will be independent.

As a market is defined by a single price list, in these cases you will need to create at least one market for every price list you will define.

Multiple currencies

Let’s suppose you’re selling across different countries. You need to create one price list for each currency of the different selling currencies you’re going to use

Different kind of customers

There might be the case where your selling strategy includes the need of showing different prices to different kind of customers. For instance, this situation can occur when:

  • you want your VIP customers to have special discounts, while regular customer see the standard price list;
  • you’re going to set up a private sale with reduced prices for registered users only.

In both cases, you need to create some new price lists. As many as the group of customers, you want to manage.

Taxes included or not included

It might be necessary to establish whether the prices in you Price Lists will include taxes or not. European VAT provides for both of these possibilities. Usually for B2C trades taxes are included, while they’re not included for B2B ones. The situation is quite different if you want to sell in the United States. The US Sales Tax is governed at a state level and no national general sales tax exists. That’s why you’re required not to include taxes in your Price List, but calculate them. Something similar happens in other countries such as Canada.

Summing up

Let’s dive into a couple of quick examples. These are some common situations in which you need to define or not different price lists because of some of the reasons mentioned above.

  • You want to sell B2C in Europe, using only euros: you need one simple price list in euros, with taxes included.
  • You want to sell B2C in Europe and in the UK: you need two price lists, one in euros and one in pounds, both with taxes included.
  • You want to sell in Europe, B2C and B2B: you need two price lists, but one with taxes included and the other one with taxes not included.
  • You want to sell in Europe and in the USA, B2C and B2B: you need at least three price lists. Two in euros (one with taxes included and the other one with taxes not included) and one in dollars, with taxes not included.

As a general rule, even if only one of your price lists doesn’t include the taxes, you need to configure a tax calculator, to calculate them at the time of the order creation.