Case Study: Custom Shopify Plugin Eliminates 15+ Hours of Manual Pricing Work
The Challenge: A Manual Pricing Nightmare
A fast-growing Shopify merchant managing a catalogue of 145,000+ SKUs sourced from 10+ distinct vendors faced a major operational bottleneck.
"Each vendor has different wholesale agreements requiring specific markup percentages. Manually updating prices when products are added or costs change was consuming 15+ hours per week and prone to human error."
Compounding this, the client had to manage varying tax rules: some vendor feeds included VAT (inclusive), while others were exclusive of VAT. Shopify's native tools couldn't handle this variation, leading to a risk of losing revenue or double-taxing customers.
Key Pain Points
- Time Sink: 15+ hours per week spent on manual price calculation
- Margin Loss: Errors resulting in missed profit margins or over/under-charging customers
- Tax Complexity: No systematic way to account for vendor-specific VAT inclusive/exclusive pricing
- Delayed Updates: Slow, post-import price reviews delayed time-to-market for new products
Our Solution: Vendor Pricing App
We custom-developed the Vendor Pricing App—a dedicated, automated Shopify application designed to handle complex, vendor-based pricing and tax logic instantly.
Core Features & Benefits
| Feature | Strategic Benefit |
|---|---|
| Automatic Markup Rules | Set vendor-specific markup and VAT logic once; applies instantly and consistently forever |
| Real-time Webhooks | Prices update instantly on product create/update, ensuring accuracy from the moment of import |
| VAT Logic Integration | Systematically differentiates and calculates prices for VAT-inclusive and VAT-exclusive vendor feeds |
| Scalable Architecture | Designed to handle 10k+ products and high-volume operations without lag |
| Bulk Sync & Prevention | One-click to re-apply all rules, plus smart loop-prevention ensures stable pricing |
Technical Implementation
Architecture Overview
Our solution utilises Shopify's event-driven architecture to ensure price updates are immediate and non-intrusive.
The app connects to the Shopify store via webhooks, processes pricing logic through our custom application, and updates variants via the GraphQL API.
Technology Stack
- Framework: Remix (React + Node.js)
- Database: Prisma ORM with PostgreSQL
- API: Shopify GraphQL Admin API for high-performance variant price updates
- UI: Shopify Polaris design system for a native, seamless merchant experience
The Pricing Calculation Flow
- Webhook Triggered: Shopify sends a product event (products/create or products/update)
- Vendor Lookup: App identifies the product's vendor and retrieves its rule set (Markup %, VAT treatment)
- Price Calculation: The app performs the appropriate calculation including VAT logic
- Update Applied: A GraphQL mutation updates the product's variant prices
- Loop Detection: A product Metafield tracks the processed state to prevent infinite update loops
Results: Automated Accuracy
The Vendor Pricing App eliminated manual tasks and instantly improved financial accuracy across the entire catalogue.
Before vs. After
| Metric | Before | After | Impact |
|---|---|---|---|
| Price Update Time | 15+ hours/week | 0 hours (Automated) | 100% Reduction |
| Pricing Errors | ~5% of products | 0% | Eliminated Margin Loss |
| New Product Pricing | 24-48 hour delay | Instant (Real-time) | Faster Time-to-Market |
| Tax Compliance Risk | High (VAT discrepancies) | Zero (Automated Logic) | Guaranteed Accuracy |
Key Business Impact
- 100% reduction in manual pricing labour, freeing up the merchant team for growth activities
- Eliminated revenue loss caused by pricing errors and tax calculation mistakes
- Instant, scalable price synchronisation, regardless of catalogue size or import method
Client Testimonial
"The Vendor Pricing App has completely transformed how we manage supplier markups. What used to take half a workweek now happens automatically and without error. We've eliminated pricing mistakes, solved our VAT complexity, and can finally focus on growing the business."
Project Details
- Project Duration: 1 week
- App Status: Production-ready and running in client's store
- Catalogue Size: 145,000+ SKUs across 10+ vendors
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About Postino Team
The Postino team builds custom e-commerce solutions and automations for ambitious businesses.