Setting Recovery VS SRP - What it Means to Use Each

Understanding 1st and 3rd party channels: 

Recovery: The price you set that the channel will pay you for each transaction of that item. 
SRP: Suggested Retail Price. The price the customer will see when purchasing the product. 

1st Party Channels - Quipt Sends Recovery 
3rd Party Channels - Quipt Sends SRP

1st party partners are channels who advertises as one seller. The channel makes the final decision on what a product will sell to the customer but the seller will be paid the recovery regardless. Quipt will always send recovery for 1st party channels. You will set how much you want to make for each transaction in the recovery. 

3rd party partners are channels which you are the direct seller on a marketplace. The customer will see your store and how much you are selling an item for after the channel commissions and shipping costs. Sellers have direct access to change the final price to the customer and manage changes to stay competitive in the market. For 3rd party channels, Quipt will send SRP. We use Fee Management and Freight Calculations to manage how SRP/Recovery costs show in Quipt. 

Shipping 

1P Channels 
Freight calculations are taken into consideration. If you are not giving a landed cost in your recovery, then you will use the Freight Calculation settings. When using these settings, Quipt will send recovery plus estimated freight to the 1st party channel as your cost. This way you will be compensated for your shipping charges and still recover the proper value from the transaction. 

3P Channels 
Freight calculators are used to calculate an accurate recovery or added to the recovery based on your Fee Management settings. 

Practical Application

When syncing with Quipt at a partner level, you need to decide whether you are mapping in recovery or SRP for each partner. Do you want to equalize all sales based off one or the other? What does that mean for your accounting? 

The majority of marketplaces are 3rd party channels. Do you want to equalize a recovery to make the same amount of money on each transaction regardless of the channel? Or do you want to equalize based off a customer facing SRP? Understanding channel commissions and fees will help you make that decision. Here's an example: 

Equalizing Recovery:

You will be paid $1000 for every order regardless of where it sells. Due to the commissions, prices will vary to the customers across different channels. 

Equalizing SRP

You will set the sale price at $1000 for every channel. If a customer sees your store on BackMarket and on Newegg Marketplace, they will see the same prices. Due to the commissions, what you will be paid for each order will vary from channel to channel.