Pricing & Margin
For each product that you list on the Jet Marketplace, you will provide the price at which you will sell the product to Jet (the “Item Price”) as well as the shipping fees for that product (the “Shipping Price”). At checkout, the Jet Marketplace matches Jet Members with Retail Partners, thereby determining which Retail Partner(s) will fulfill a given Jet Member order. If you are selected as the fulfilling party, you will sell the item to Jet, who will resell that item to the Jet Member at a retail price to be determined by Jet at its discretion.
For a given product, the amount you will receive when you complete the sale of the product to Jet will be defined as the “Retailer Price.” The Retailer Price = the Item Price + Shipping Price. If you set an order-level shipping fee, this fee will be allocated to the items in that order on a price weighted basis, in order to determine the Shipping Price for a given item.
Note: If you set a per order and per pound shipping fee for a fulfillment node, it is required that you provide shipping weights for all items associated with that fulfillment node items.
Jet Members receive certain benefits of membership. Accordingly, the price charged by Jet to Jet Members on the Jet Marketplace may be different than the Retailer Price of your items. However, the amounts paid to you by Jet for any sales transaction will always be based on the Retailer Price.
Please refer to the Jet Pricing, Settlement, & Commissions Policy for more information on how prices work on Jet.
In order for the Jet Marketplace to provide Jet Members with the benefits of an efficient marketplace (savings for Jet Members, profitability and flexibility for Retail Partners), the Retailer Price of an item (i.e., Item Price + Shipping Price) should be equal to or less than what you sell the item for elsewhere, including, but not limited to, any on-site sales or promotions. As a reminder, with the Jet Rules Engine, Retail Partners have the ability to protect profitability by setting shopping basket rules that lower commissions paid on low dollar value baskets.
Online sellers aim to make some margin on the products they sell. However, through typical online marketplaces, on an order-by-order basis profit varies dramatically. By setting your inventory information on a fulfillment center basis and using the Jet Rules Engine to adjust your commission rates, you can attract more 'good orders' and maintain margin on 'bad orders'.
* A “good order” E.g. One where a customer who lives very near a seller’s fulfillment center orders 6 things that all ship in the same box, pays by eCheck, doesn’t call customer care and doesn’t return anything.
* A “bad order” E.g. One where a customer that lives across the country from the seller orders a single thing that barely puts them over a free shipping minimum, pays with a credit card that charges high transaction rates, and then calls customer care to return the item.
Did you find this article helpful?