Overview

When creating a Direct Buy Button or Checkout Link, Lulu displays several pricing values to help you determine how much to charge your customers.

Understanding how these values work will help you price your products appropriately and avoid selling a product below cost.

TABLE OF CONTENTS

• How Buy Button Pricing Works
  • Print Cost
  • Minimum List Price
  • Store List Price
  • Payment Processing Fee
  • Fulfillment Fee
  • Estimated Revenue

Total Cost

The total cost of fulfilling an order consists of:

• Print Cost
• Payment Processing Fee
• Fulfillment Fee
• Shipping
• Sales Taxes (where applicable)

Any amount remaining after these costs are deducted becomes a merchant's estimated revenue.

Print Cost

The Print Cost is the cost to manufacture your product.

This amount depends on the book's specifications, including factors such as:

• Trim size
• Page count
• Interior ink type
• Paper type
• Binding
• Cover finish

The Print Cost is the base production cost charged by Lulu to manufacture the book.

Minimum List Price

The Minimum List Price is the lowest price you can charge for a product.

It is automatically calculated as:

Print Cost + Payment Processing Fee + Fulfillment Fee

This ensures that the total amount collected from the customer covers the costs of producing and fulfilling the order.

Because the payment processing fee changes as the selling price changes, the minimum list price is calculated automatically by the system.

Note: You cannot set a List Price lower than the Minimum List Price.

To see a breakdown of the Minimum List Price for a given product, hover your cursor over the tooltip in the Add a Product window, or the Product Details Page.

Store List Price

When a customer purchases a product through a Buy Button or Embedded Checkout, the amount they pay is the Store List Price. The Store List Price is set by the merchant when adding product to Lulu Direct, and can be any price above the Minimum List Price.

Payment Processing Fee

The Payment Processing Fee covers the cost of securely processing customer payments through Stripe.

This fee is automatically calculated based on your product's List Price and is included when determining your minimum selling price.

Fulfillment Fee

The Fulfillment Fee covers the services Lulu provides to fulfill your order after payment has been received.

This includes order processing and fulfillment services required to prepare the order for production and shipment.

Related Article: Fulfillment Fee

Estimated Revenue

A Merchant's Estimated Revenue is the amount they are expected to earn after Lulu deducts the:

• Print Cost
• Payment Processing Fee
• Fulfillment Fee

The calculation is:

List Price − (Print Cost + Payment Processing Fee + Fulfillment Fee) = Estimated Revenue

For example:

Note: The above table is for illustrative purposes and shipping and taxes are not included.