Configure markup for Azure Marketplace offers

Introduction

This article explains how to configure Markup for Azure Marketplace Products in the Platform. Understanding Azure Marketplace pricing will help you properly configure margins for the thousands of third-party Products available through Microsoft Cloud Solution Provider.

In this article:

• Azure Marketplace overview
• Current limitations
• How Azure Marketplace pricing works
• Default configuration
• Risk mitigation strategy

Azure Marketplace overview

Through the Microsoft Cloud Solution Provider sales channel, it is possible to purchase different Products provided by vendors other than Microsoft. The Microsoft Azure Marketplace contains over 18,000 Products available for purchase.

These Products can have different costs and cancellation policies, and are not individually enabled in the Product catalog on the Platform due to their volume and variability.

Current limitations

User interface limitations:

• The "Azure Marketplace" Product is not visible in the user interface
• Cannot be configured in the Customer Prices section through the standard interface

Configuration method:

To configure pricing for the "Azure Marketplace" Product, you must import the price configuration using the price import functionality.

Important information:

• Product ID for Azure Marketplace: B3929EDC-85FC-432C-A23F-A5971E96DEAF
• For all newly created Sellers, a default price configuration exists for Azure Marketplace to sell based on Cost Price

How Azure Marketplace pricing works

The Platform supports configuring a generic Markup for Azure Marketplace Products through a special "Azure Marketplace Offer" configuration. This Azure Marketplace Product is linked with all marketplace Products, so when any marketplace Product is purchased, it automatically receives the configured Markup.

Critical pricing consideration:

Azure Marketplace Products have the same Cost Price and Suggested Retail Price, which requires careful consideration when configuring Markup.

Default configuration

To avoid pricing conflicts, the Platform configures Azure Marketplace Products by default to be sold at Cost Price by both Distributors and Sellers.

Why this matters - Example scenario:

Without default Cost Price configuration (Risk):

1. Distributor configures in Customer Segments: Use Cost Price + 5% as selling price
2. Seller configures in Customer Prices: Use Suggested Retail Price as selling price
3. Result: Seller would sell at a 5% loss (because Cost Price = Suggested Retail Price for Azure Marketplace)

With default Cost Price configuration (Protected):

1. Distributor configures in Customer Segments: Use Cost Price + 5% as selling price
2. Seller default configuration: Use Cost Price as selling price
3. Result: Seller automatically Invoices Customer with 5% added on top and can optionally adjust price further based on preference

Risk mitigation strategy

Best practice:

Always configure Azure Marketplace Products to use Cost Price as the Price Source rather than Suggested Retail Price. This ensures that:

• Markups applied by Distributors are automatically passed through to Sellers
• Sellers do not inadvertently sell at a loss
• Pricing remains consistent and predictable across the sales channel

Seller flexibility:

Even with the default Cost Price configuration, Sellers can still adjust pricing based on their preferences by adding additional Markup at the Customer level.

Summary

Azure Marketplace contains over 18,000 third-party Products available through Microsoft Cloud Solution Provider, which are not individually listed in the Platform Product catalog due to volume and variability. The "Azure Marketplace" Product (ID: B3929EDC-85FC-432C-A23F-A5971E96DEAF) is not visible in the user interface and must be configured through price import functionality. Azure Marketplace Products have identical Cost Price and Suggested Retail Price, requiring careful Markup configuration to avoid losses. The Platform defaults Azure Marketplace to Cost Price selling for both Distributors and Sellers to prevent scenarios where a Distributor uses Cost Price + 5% while a Seller uses Suggested Retail Price, which would result in 5% loss. With default Cost Price configuration, Distributors applying 5% Markup automatically pass that margin to Sellers, who can optionally add additional Markup for Customers while protecting their margins.