Working with Bidding Signals you can combine the transformations in different ways, which can sometimes cause confusion in how the numbers end up looking at the end.
On this page you can find examples of such chained calculations to help shine light on how the math works under the hood.
Transformation Example 1: COGS applied to Item Level and then Return Rate Applied (using total reduction calculation method)
| Original | Field in Payload | COGS Transformation | Profit Value | Multiplier (lookup) | Adjusted Value |
Item 1 | 500 | item_id: "AAA" | 300 | 200 | 0.8 | 160 |
Item 2 | 500 | item_id: "BBB" | 200 | 300 | 0.6 | 180 |
Other Costs (e.g. shipping, taxes, etc) | 500 |
| n/a | 500 | n/a | 500 |
Revenue | 1500 | revenue |
| 1000 |
| 840 |
Transformation Example 2: No item in lookup file (fallback). COGS applied to Item Level and then Return Rate Applied (using total reduction calculation method)
| Original | Field in Payload | COGS Transformation | Profit Value | Multiplier (fallback) | Adjusted Value |
Item 1 | 500 | item_id: "AAA" | 300 | 200 | 1 | 200 |
Item 2 | 500 | item_id: "BBB" | 0 | 500 | 0.5 | 250 |
Other Costs (e.g. shipping, taxes, etc) | 500 |
| n/a | 500 | n/a | 500 |
Revenue | 1500 | revenue |
| 1200 |
| 950 |
Transformation Example 3: COGS applied to Item Level and then Return Rate Applied (using item reduction calculation method, Legacy Method)
Note: Other costs are not factored into the total revenue calculation, after applying the return rate on item level
| Original | Field in Payload | COGS Transformation | Profit Value | Multiplier (lookup) | Adjusted Value |
Item 1 | 500 | item_id: "AAA" | 300 | 200 | 0.8 | 160 |
Item 2 | 500 | item_id: "BBB" | 200 | 300 | 0.6 | 180 |
Other Costs (e.g. shipping, taxes, etc) | 500 |
| n/a | 500 | n/a | 0 |
Revenue | 1500 | revenue |
| 1000 |
| 340 |
Transformation Example 4: No item in lookup file (fallback). COGS applied to Item Level and then Return Rate Applied (using item reduction calculation method, Legacy Method)
Note: Other costs are not factored into the total revenue calculation, after applying the return rate on item level
| Original | Field in Payload | COGS Transformation | Profit Value | Multiplier (fallback) | Adjusted Value |
Item 1 | 500 | item_id: "AAA" | 300 | 200 | 1 | 200 |
Item 2 | 500 | item_id: "BBB" | 0 | 500 | 0.5 | 250 |
Other Costs (e.g. shipping, taxes, etc) | 500 |
| n/a | 500 | n/a | 0 |
Revenue | 1500 | revenue |
| 1200 |
| 450 |