Impact of Price Change on Shopify

On Marketcube, Operators are the owners of order however, Vendors are the owners of products. Therefore, only vendors can update or change product prices. This article explains what happens if Operators update the prices of a product on their store.

Any change made in product price by the vendor will pass through to the Operator and their store (depending upon operator's product approval setting, if the operator has auto-accept changes enabled, changes made by the vendor will automatically get updated in the operators' store). As mentioned, operators cannot update the product price but they can add a markup or discount in product prices as part of our pricing management.

Sometimes operators update the product price on Shopify however since operators are not the owner of the product this change will be reflected on Marketcube as a markup (if the price is increased) or discount (if the price is decreased).

Let's understand the impact of markup using an example.

Vendor, 'Poseidon' added a product (Blue-Eyed Watch) at 35 AED.

This price was reflected in the Operator's store (as shown below).

Operator, "Global Watch Shop" wanted to update the product price from AED 35 to AED 45 so they made this change on Shopify (as shown below).

And this change led to a change of price for this product on the operator's store. All customers will now buy the product at AED 45.
Let's understand this scenario.
The customer paid AED 45.
In Marketcube the order price reflects as AED 35.
Commission calculation will be taken from the original price of the product added by the vendor so AED 35 will be the price of the product for commission calculation.
The Operator will keep AED 10 (as a markup which will be the operator to keep) and the vendor will get the remaining payment after deducting the commission
(so for example. if the commission is set to be 10%:
The operator will take AED 10 (Commission- 10% of AED 35 ) + $10(Markup 45-35) hence a total of AED 13.5.
The vendor will take AED 31.5 (Total Price of Product AED 35 - Commission of 10 %)
However if the operator is not charging any commission on this product the vendor will receive AED 35. Whilst the operator keeps the AED 10 markup.

Similarly, if an operator lowers a product price, this will be reflected as a discount and will not have any impact on the vendor's payout as the vendor payout will be based on the original price of the product.

Let's understand the impact of discounts using an example:

Vendor, 'Poseidon' added a product Ancient Model Watch at AED 100.
This price was reflected in the Operator's store (as shown below).

Operator, 'Global Watch Shop' wanted to update the product price from $100 to $50 so they made this change on Shopify (as shown below).

And this change led to a change of price for this product on the operator's store. All customers will now buy the product at AED 50.
Let's see what happens when an order is placed for this Product.
The customer paid AED 50
In Marketcube the order price reflects as AED 100.
Commission calculation will be taken from the original price of the product added by the vendor so AED100 will be the price of the product for commission calculation.
The Operator will have to bear the discount provided by him as he updated the price from AED 100 to AED 50 and the vendor will get the payment after deducting the commission on the actual price of the product
(so for example. if the commission is set to be 10%:
The operator will take AED10 (Commission- 10% of AED100) and will pay the vendor AED100-AED10= $90 because this discount was provided by the operator to his end-users and it will not have any impact on vendor payouts.

Got more questions? Use the chat on your right or email support@marketcube.io to get in touch