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Pricing localization capabilities

Overview

Avangate's pricing configuration capabilities enable you to tailor the price details of your products/subscription plans to specific markets or geographic regions. The price, currency and pricing options set per-product can easily adapt to each market, providing a powerful tool to support your localization/globalization strategy.

Example:

A product costs $30 for US-based shoppers and 25 Euro for those in Germany. The Avangate system's localization capabilities make it possible for shoppers located in the United States to see the $30 price when adding the product to cart, with US as the preselected billing country. Similarly, shoppers in Germany will get the 25 Euro localized price, when their country is preselected according to geo-location detection. The flexibility of the Avangate system also enables localized prices to be swapped for one another when shoppers manually select the billing country.

Availability

Avangate Enterprise Edition accounts. 

Requirements

Pricing localization capabilities require the following:

  1. Pricing Configurations enabled for your account.
  2. Enable geo-location by IP address . Avangate uses real time geo-location to determine shopper locale. Geo-location is enabled by default and should be active to ensure that localized pricing will work for your products.
  3. To localize costs you first need to configure a new pricing configuration for a subscription plan/product on top of the Default.

Default pricing configuration

Each product features a Default pricing configuration designed to cover all available billing countries (it includes all markets as long as they aren't covered by any localized pricing strategies). Avangate defaults to this pricing configuration when IP geo-location is disabled.

Avangate recommends you use pricing localization in tandem with IP geo-location. Without geo-location Avangate does not pre-select the billing country when shoppers first land in the shopping cart, and they will see the costs configured under the Default pricing configuration. 

Limitations

  1. You cannot localize the Default pricing configuration. 
  2. All new pricing configurations you add on top of the default are disabled by default until you edit the country details (assign at least one country to a pricing configuration to enable it for the shoppers in that specific market).
  3. Marking a new, custom, localized pricing configuration as Default disables the default pricing configuration previously in use (detail reflected by the Not active for eStore status).
  4. Transforming a custom, localized pricing configuration into the Default pricing configuration expands its country coverage worldwide, removing all its personalized localization settings.

Setup

  1. Click the Add countries link in the eStore billing countries column of a pricing configuration to start adding markets/regions:Europe, the Middle East and Africa, Asia-Pacific, Latin America, Rest of the World and North America.
  2. Select countries and assign them to the pricing configuration one by one or in bulk. Press and hold the Ctrl key to multi-select items. Once you added the countries for a local pricing configuration.
  3. Click Save to save localization details of the pricing configuration and to activate it. When you assign all countries in a geographical region to a pricing configuration, Avangate displays the name of that region displayed under the eStore billing countries column. Avangate displays a a maximum of five assigned standalone markets under the eStore billing countries column, for multi-market localized pricing configurations.

How do localized pricing configurations work?

Localized pricing configurations override the default pricing configuration when Avangate detects the shopper country. If the Avangate system can't determine the country of a shopper, the shopping cart display prices in accordance with the Default pricing configuration. However, if the shopper selects a country for which you defined a localized pricing configuration, the price details adapt accordingly.

Shoppers from countries not covered by any of their localized pricing configurations also see the price details of the default pricing configuration.

You can associate a specific country ONLY with a single localized pricing configuration at any given time. Re-assigning a country to another localized pricing configuration removes the market automatically from the localized pricing configuration it was part of.

While going through the stages of the purchase process, shoppers will be presented with the price set for the billing country selected in the cart (can be pre-selected, but users can also choose it manually). Per-product pricing details displayed to shoppers change if the billing country is modified to a different market governed by other pricing details. Shoppers will get this warning message in the cart: "The product options have been changed due to availability settings in the selected country."

Non-localized pricing configurations are also active, but not for eStore, as they can be used to supply price lists to your partners.

Localized pricing configuration options

You can create multiple pricing configurations for the same product, be as similar to one another or as different as you prefer. The following parameters can be completely different for multiple pricing configurations applied to the same product.

  1. Pricing configuration type (with base price, without base price, net, gross)
  2. Price
  3. Default currency
  4. Pricing options
  5. Renewal discounts
  6. Volume discounts

As a result, they can control not only the actual price in accordance to specific geographic regions and countries, but also pricing strategies.

Pricing localization and product SKUs

You have the option of configuring stock keeping units (SKUs) each pricing configuration in the Avangate platform, and associate unique SKUs in accordance with the currencies, volume discounts (if any), purchase type and pricing options (if any) settings impacting products when localizing their pricing configurations. 

Upselling and Cross-selling

Localized pricing settings  impact their upselling and cross-selling marketing campaigns.

upselling

When configuring upselling campaigns, you'll need to factor in localized pricing strategies for the primary and recommended products. There are four scenarios you need to consider, related to the type of upselling campaigns available.

Scenario 1

Primary product with NO pricing options in Default pricing configuration

Recommended product with NO pricing options in Default pricing configuration. 

Avangate always triggers upselling campaigns regardless of the pricing options in additional localized pricing configurations. If pricing options are defined for specific localized pricing configurations, they'll also be available to shoppers in eligible markets.
Scenario 2

Primary product with NO pricing options in Default pricing configuration

Recommended product WITH pricing options in Default pricing configuration. For the Recommended product, you can select either:

  • Any pricing options combination (all pricing options are editable).
  • Specific pricing options (only if they were defined for the Default pricing configuration created for the product).

Avangate always triggers upselling campaigns regardless of the pricing options in additional localized pricing configurations. When added to cart, Recommended products:

  • Have their pricing options locked (those selected when creating the campaign), if they're associated with localized pricing configurations assigned to the countries where shoppers are located and match those of the Default pricing configuration.
  • Feature editable pricing options if they're associated with pricing configurations governing the countries where shoppers are located but do not match those of theDefault pricing configuration.
Scenario 3

Primary product WITH pricing options in Default pricing configuration

Recommended product with NO pricing options in Default pricing configuration. For the Primary product, you can select either:

  • Any pricing options combination - campaign will always start (all pricing options will be editable)
  • Specific pricing options (only if they were defined for the Default pricing configuration created for the product) - campaign will start only when the primary product with specific pricing options is added to cart.

If pricing options are defined for specific localized pricing configurations, they'll also be available to shoppers in eligible markets.

Scenario 4

Primary product WITH pricing options in Default pricing configuration

Recommended product WITH pricing options in Default pricing configuration. For the Primary product, you can select either:

  • Any pricing options combination - campaign will always start (all pricing options will be editable);
  • Specific pricing options (only if they were defined for the Default pricing configuration created for the product) - campaign will start only when the primary product with specific pricing options is added to cart.

Recommended products :

  • Have their pricing options locked (those selected when creating the campaign), if they're associated with localized pricing configurations assigned to the countries where shoppers are located and matching those of the Default pricing configuration.
  • Feature editable pricing options if they're associated with pricing configurations governing the countries where shoppers are located but not matching those of theDefault pricing configuration.

As a rule of thumb, consider the default pricing configuration of your offerings as the central element of upselling campaigns when pricing options are also involved. In scenarios in which the Primary product of an upselling campaign has pricing options set up for the default pricing configuration, they'll also be available when configuring the upselling recommendation. Pricing options will not be displayed in the Upselling recommendation area when editing a campaign if they're only defined for the localized pricing configurations of the Primary product, but not the default.

 

Similarly, the pricing options of the Recommended product will only be displayed in the Upselling recommendation area when editing a campaign only if they were enabled for the Default pricing configuration. If not featured under the Default pricing configuration but only for localized pricing configurations, the pricing options will not be available when configuring upselling campaigns.

Cross-selling

Cross-selling campaigns function regardless of the pricing configurations set up for their products. Shoppers located in a country governed by a localized pricing configuration will be able to select the pricing options associated to their locale for the main products and for the cross-selling items as well.

However, if the products are automatically added to cart, they're pricing options will be locked, and shoppers won't have the possibility of editing them (offerings will come with pre-selected pricing options, and the system will disregard the availability of alternatives, which will never be displayed in the cart).

Localized pricing for subscription renewals

When renewing a subscription, the Avangate system will correlate the renewal price with that of the initial purchase. Renewal prices can be defined as a part of the default and localized pricing configurations for products with base and without base price.

 

Essentially, subscriptions initially acquired by shoppers in a specific market governed by a localized pricing configuration, will be renewed in accordance to the same pricing configuration and billing country. Renewal prices will not vary in any way, even if shoppers change the billing country to a market assigned to a different pricing configuration than the one from which they made the initial acquisition.

Renewals made by using the Avangate API are impacted by the same limitation, namely the price will not adapt when the billing country is changed, but will reflect the market in which shoppers were located when they initially purchased the subscription.

Upgrades

When upgrading a product, the Avangate system correlates the upgrade price with that of the initial purchase.

Avangate does not change the localized pricing configuration and billing country when upgrading a subscription, reflecting the initial purchase. Upgrade costs do not vary, even if shoppers change the billing country to a market assigned to a different pricing configuration than the one from which they made the initial acquisition.

Upgrades made by using the Avangate API are impacted by the same limitation, namely the price does adapt when the billing country is changed, but will instead reflect the market in which shoppers were located when they initially purchased the product.

New purchases, renewals and upgrades through API - localized pricing

The Avangate API supports localized pricing capabilities.

New purchases

The billing country set by using Avangate API causes the price details to be adapted accordingly, if you localized the pricing configuration for that specific market.  If there's no match between the localized pricing configuration and the billing country, Avangate uses the default pricing configuration used instead.

Upgrades

Upgrades through the Avangate API take into account the billing country associated with the initial subscription for the pricing details of the target subscription of the upgrade process. Avangate uses the localized pricing configuration of the target subscription plan in accordance with the billing country of the initial subscription.

Note: If the upgrade subscription/product does not feature a pricing configuration localized on a specific market, then the system uses the item's Default pricing configuration.

Renewals

Subscription renewals through the Avangate API use the price options from the localized pricing configuration, but you control the price and the billing cycle following the renewal independently of the subscription plan configuration.