TABLE OF CONTENTS

• What are bounds
• Three methods for bounds calculation
  • Method 1: You can define your bounds parameters with fixed monetary value
  • Method 2: You can apply a margin rate on the offer’s costs
  • Method 3: You can apply a factor on your reference price

What are bounds

No price recommendations are made when effective bounds are missing or invalid. It is mandatory for Multiply to have a valid price range defined by effective bounds in order to make price recommendations. The price range is defined by a lower and an upper price bound. A price bound is a price limit that is strictly respected by Multiply when making a price recommendation.  

And it is important to define a relevant price range to make the most of Multiply’s ability to win the buy box, maximize the buy box time and keep the highest possible margin in the buy box. At the same time, the price range needs to respect your business expectations and prevent negative effects on your margins or your competitivity.

Three methods for bounds calculation

Few rules

• Multiply rests on all the available bounds parameters and calculates your minimum bound and your maximum bound separately. 
• Multiply offers three methods to define your bounds parameters. Each method is independent and at least one method should be set to allow Multiply to calculate effective price bounds.
• When more than one method is used to calculate a bound, priority rules apply. For more info, see Bounds priorities and rules for conflicts

Whatever your chosen method, you will need to import some parameters; to help you with that important step, please click here : Three methods to import your bound parameters

Method 1: You can define your bounds parameters with fixed monetary value

Price bound = fixed price value

• As parameters, you can choose to fill in fixed price values either listing or landed and including VAT or excluding VAT.
• Multiply then calculates the effective bound depending on the shipping fee observed on you offer.
• The fixed price value must be set for each offer separately.

If you have a min_landed_price_inc_vat, ensure you also have a min_listing_price_inc_vat. 

Method 2: You can apply a margin rate on the offer’s costs

Multiply distinguish two margin rates, you can set up both of them for more safety :

Listing Price bound = (cost of goods sold excl. VAT + commission cost excl. VAT ) * (1+ listing margin rate)

Landed Price bound = (cost of goods sold excl. VAT + commission cost excl. VAT  + shipping cost excl. VAT ) * (1+ landed margin rate)

• The listing margin rate ignores the costs of shipping whereas the landed margin rate is based on all known costs.
• You enter a minimum and a maximum margin rate you want to respect and fill in the costs of the offer. 
• Multiply calculates the bound from these parameters.
• A margin rate can be set for each offer and/ or for the whole catalog
• Following costs are mandatory :
  • Cost of goods sold
  • FBS shipping and handling (Cost of shipping when fulfilled by the seller)
  • FBA shipping and handling (Cost of shipping when fulfilled by the marketplace)
  • Commission rates

Multiply allows you to fine-tune the calculation of your thresholds via the margin rate method by offering you the possibility to configure a wide range of costs. Some costs are retrieved from the marketplace (Amazon commission, FBA shipping fees), while others need to be created by you.

Multiply enables you to input acquisition, transport, and logistics costs, marketplace commissions, delivery costs to fulfillment centers, and also the possibility to create custom costs based on your specific needs.

If you have a min_landed_margin_rate, ensure you also have a min_listing_margin_rate. 

Method 3: You can apply a factor on your reference price

Price bound = Ratio (%) * Reference price incl.VAT (shipping fee excluded)

• You fill in a min factor and a max factor.
• Multiply refers to the reference listing price including VAT and applies the factor to calculate the bound.
• A factor can only be set at the catalog level.

If you want to use this method, the reference listing price is a mandatory element. 

By default, the reference price is the first price observed by Multiply on the marketplace but it is editable. We deeply suggest you provide us with your reference price and update them regularly.

The presence of the icon "warning" indicates that your reference price is predicted and not provided. 

Predicted reference prices can be incorrect for various reasons beyond our control, so we encourage you to provide them to us.