> For the complete documentation index, see [llms.txt](https://developer.esw.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://developer.esw.com/getting-started/get-started-with-esw/finance-and-settlement/pricing/pricing-advisor-example-to-settlement.md).

# Pricing Advisor Example to Settlement

{% tabs %}
{% tab title="Scenario" %}

#### UK shopper

* **FX rate (GBP/USD):** `0.9212`
* **Retailer uplift:** `+10%` applied to merchandise price in the UK.
* **Duty & VAT at pre-order:** Exact values can’t be known at this stage (cart total and thresholds vary), so ESW uses a **blended (pseudo) rate** based on average cart size.
  * **Blended duty:** `1.6%`
  * **Blended VAT:** `20%`
* **Rounding rule:** Prices are **rounded to the nearest** $$£0.50$$
  {% endtab %}
  {% endtabs %}

{% tabs %}
{% tab title="Worked Example" %}

* Merchandise price: **$200**
* Uplift (10%): **$20** → Subtotal: **$220**
* Estimated duty (1.6% of $220): **$3.52**
* Estimated VAT (20% of $220 + duty): **$44.70**
* FX conversion to GBP at `0.9212` → $$≈ £247.09$$
* **Rounded shopper price** (nearest £0.50): **£247.50**.

<div data-with-frame="true"><img src="/files/qjntzqOhwzpYorededhj" alt=""></div>

{% hint style="info" icon="basket-shopping" %}
ESW returns these components (uplift, estimated duty, estimated VAT, FX rate, rounding rule) per country; for the UK, the example above applies. The resulting price is passed to ESW via the [**Checkout API pre-order**](/checkout-api/checkout-api/overview.md).
{% endhint %}
{% endtab %}
{% endtabs %}

## Customer Order Confirmation & ESW Settlement

{% tabs %}
{% tab title="Example" %}
{% hint style="info" icon="tags" %}
**Shopper view:** Total paid by shopper = **£247.50 GBP**.
{% endhint %}

### ESW settlement breakdown

| Line item                 | GBP        | USD        | Notes                                                     |
| ------------------------- | ---------- | ---------- | --------------------------------------------------------- |
| Merch                     | 204.21     | 221.68     | Merchandise value                                         |
| Shipping                  | —          | —          | Shipping charged to customer at checkout                  |
| Duties                    | 2.04       | 2.22       | ESW remits to local authorities (actual \~1%)             |
| Tax                       | 41.25      | 44.78      | ESW remits to local authorities (actual \~20%)            |
| **Total**                 | **247.50** | **268.67** | Matches shopper total (GBP); converted value shown in USD |
| **Total paid by shopper** | **247.50** | **268.67** | Confirmation of shopper payment                           |
| ESW Checkout fee          | 13.61      | 14.78      | \~ **5.50%**                                              |
| ESW Shipping Fee          | 10.00      | 10.86      | As per agreed rate card                                   |
| **Retailer receives**     | **180.60** | **196.04** | Settlement to retailer after ESW fees                     |
| **Total costs**           | **66.90**  | **72.63**  | Sum of ESW fees, duties, and tax                          |

<div data-with-frame="true"><img src="/files/K0Fn8ZaHb9og3b3u0MHz" alt=""></div>
{% endtab %}
{% endtabs %}


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