Pricing Advisor Example to Settlement
Example workflow from Pricing Advisor to settlement
Pricing Advisor — Example (UK)
- Scenario: Shopper is in the UK.
- FX rate (GBP/USD):
0.9212. - Retailer uplift:
+10%applied to merchandise price in the UK. - Duty & VAT at pre-order: Exact values can’t be known at this stage (cart total and thresholds vary), so ESW uses a blended (pseudo) rate based on average cart size.
- Blended duty:
1.6% - Blended VAT:
20%
- Blended duty:
- Rounding rule: Prices are rounded to the nearest £0.50
Worked example:
- Merchandise price: $200
- Uplift (10%): $20 → Subtotal: $220
- Estimated duty (1.6% of $220): $3.52
- Estimated VAT (20% of $220 + duty): $44.70
- FX conversion to GBP at
0.9212→ ≈ £247.09 - Rounded shopper price (nearest £0.50): £247.50.
ESW returns these components (uplift, estimated duty, estimated VAT, FX rate, rounding rule) per country; for the UK, the example above applies. The resulting price is passed to ESW via the checkout API pre-order.
Customer Order Confirmation & ESW Settlement (Example)
- Shopper view: Total paid by shopper = £247.50 GBP.
ESW settlement breakdown
| Line item | GBP | USD | Notes |
|---|---|---|---|
| Merch | 204.21 | 221.68 | Merchandise value |
| Shipping | — | — | Shipping charged to customer at checkout |
| Duties | 2.04 | 2.22 | ESW remits to local authorities (actual ~1%) |
| Tax | 41.25 | 44.78 | ESW remits to local authorities (actual ~20%) |
| Total | 247.50 | 268.67 | Matches shopper total (GBP); converted value shown in USD |
| Total paid by shopper | 247.50 | 268.67 | Confirmation of shopper payment |
| ESW Checkout fee | 13.61 | 14.78 | ~5.50% |
| ESW Shipping Fee | 10.00 | 10.86 | As per agreed rate card |
| Retailer receives | 180.60 | 196.04 | Settlement to retailer after ESW fees |
| Total costs | 66.90 | 72.63 | Sum of ESW fees, duties, and tax |
