Purpose
To clearly define what pricing structures are acceptable and eliminate non-viable submissions early.
Vendor Pricing & Margin Policy
To maintain a sustainable eCommerce business model, all vendors must comply with our pricing and margin requirements.
- Target Margin Requirement
- Target gross margin: 30–35%
- Absolute minimum: 25% (limited cases only)
Margins are calculated from live market RRP, not internal or recommended pricing.
Live Market RRP Definition
Live market RRP refers to:
- Current advertised pricing across major online retailers
- Your own direct-to-consumer website
- Marketplaces and resellers you supply
We do not calculate margins using:
- Inflated RRPs
- Historical RRPs
- “Suggested” RRPs not reflected in the market
Unacceptable Pricing Structures
The following pricing models will not be approved:
- Trade price equal to market retail
- Trade price higher than online selling price
- Heavily discounted products without margin protection
- “Volume-based margin recovery” models
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