How to Set Global Pricing Rules for your Currency
As many merchants know, a very important determining factor to whether your products are purchased or not is that you are selling them for a fair and accurate markup price on your Shopify website. Markup price is something most merchants manage in Oberlo through the Global Pricing Rules.
The Global Pricing Rules are excellent for pushing your markup price to all your products site-wide by modifying the multiplier. However, there is a rather important note to know about the prices in Oberlo:
All the prices in Oberlo are in USD!
This means when you push prices to the products from Oberlo, the markup will be based on US prices, and won’t be accurate as per the respective currency for your country if you aren’t in the US. You could potentially be charging your customers too much, or not enough, depending on the country in which your business is based.
Today, I will be helping you solve this potential issue by describing the conversion math to use in your Global Pricing Rules to set accurate prices.
Let’s roll up our sleeves and get started!
Setting the Price Multiplier for your Currency
When you first start your Oberlo account, Oberlo automatically applies a 2x markup in the Global Pricing Rules for all shops, regardless of your currency. Basically, this will double the prices on your Shopify website from what the supplier is charging in their listings in Oberlo or AliExpress. You can see this in your Global Pricing Rules here:
What we will be focusing on today is making sure the price multiplier is correct for your specific currency. For the sake of my explanation, I will base all the following calculations on the assumption that you want to charge 2x what the supplier is charging. Once you know how to do the math to do a 2x price markup, you’ll essentially be able to do the same for a markup of any multiplier amount.
When you create your Shopify account, Shopify will automatically assign your products the currency for your country you signed up from. Even though your prices on your Shopify website are already in the currency for your country, Oberlo only knows to double the USD price based on the Oberlo Supply or AliExpress listing. Therefore, it will push the USD price to your Shopify website, even if you aren’t from the US! Let’s fix this!
To determine the correct multiplier, we just have to use this simple formula:
$1 USD = Amount in your currency x 2
Note: This works for however much you want to multiply by, just replace the x2 with the amount of your choosing
For example, let’s say you are from South Africa and you need to convert ZAR to USD. You would start by determining what $1.00 USD is in ZAR. A quick way to do this is to use Google:
As shown above, the conversion comes to $1.00 USD = 11.74 in ZAR. This means if you want to charge double what the supplier is, you would multiply 11.74 x2 and add that number to your Global Pricing Rules. 11.74 x 2 = 23.48
By doing this quick conversion math, we can accurately know what to set the price multiplier in the Global Pricing Rules for a 2x markup. In this scenario, it would need to look like this:
In this example, the prices will now be displayed for the proper amount at the correct exchange rate for a 2x markup respective to the South African currency.
Currency Conversion for your Country
To save some of you some work, I have also done the same math for some other countries most merchants sign up from. To quickly find yours below, hit Command+F(Mac) or Control+F(PC) and search for the currency abbreviation or your country name below:
Australia
$1.00 USD = 1.30 AUS
2x markup = 2.60 AUS
Brasil
$1.00 USD = 3.31 BRL
2x markup = 6.62 BRL
Canada
$1.00 USD = 1.29 CAD
2x markup = 2.58 CAD
Colombia
$1.00 USD = 2856.95 COP
2x markup = 5713.90 COP
Egypt
$1.00 USD = 17.62 EGP
2x markup = 35.24 EGP
France
$1.00 USD = 0.81 EUR
2x markup = 1.62 EUR
Germany
$1.00 USD = 0.81 EUR
2x markup = 1.62 EUR
Ireland
$1.00 USD = 0.81 EUR
2x markup = 1.62 EUR
India
$1.00 USD = 65.03 INR
2x markup = 130.06 INR
Indonesia
$1.00 USD = 13784.00 IDR
2x markup = 27568.00 IDR
Israel
$1.00 USD = 3.49 ILS
2x markup = 6.98 ILS
Italy
$1.00 USD = 0.81 EUR
2x markup = 1.62 EUR
Japan
$1.00 USD = 104.73 JPY
2x markup = 209.46 JPY
Lithuania
$1.00 USD = 0.81 EUR
2x markup = 1.62 EUR
Malaysia
$1.00 USD = 3.92 MYR
2x markup = 7.84 MYR
Mexico
$1.00 USD = 18.53 MXN
2x markup = 37.06 MXN
New Zealand
$1.00 USD = 1.38 NZD
2x markup = 2.76 NZD
Nigeria
$1.00 USD = 360.00 NGN
2x markup = 720.00 NGN
Philippines
$1.00 USD = 52.40 PHP
2x markup = 104.80 PHP
Russia
$1.00 USD = 57.23 RUB
2x markup = 114.46 RUB
Singapore
$1.00 USD = 1.32 SGD
2x markup = 2.64 SGD
Spain
$1.00 USD = 0.81 EUR
2x markup = 1.62 EUR
South Africa
$1.00 USD = 11.74 ZAR
2x markup = 23.48 ZAR
United Kingdom
$1.00 USD = 0.71 GBP
2x markup = 1.42 GBP
Note: The above currency exchange rates are accurate as of 2018/03/24.
The information I shared in this article should now give you a solid idea of how to handle price markup regardless of your currency. You got this!
Feel free to share your comments or questions about this information below!
