Introduction
What is Core Charge?
A core charge (or core deposit) is an extra fee customer pays when buying auto parts that can be reused or recycled ♻️. When customer returns their old part to your store, the fee should be refunded to them. The returned part is then sent back to the manufacturer or wholesaler for repurposing. Sometimes, this fee is required by law.
🧩 Core Charge Add-on
This feature requires an app to work. Add it to your store using the link below.
Purpose of Faulty Parts
Manufacturers collect old or broken parts, called 'cores,' to rebuild and resell at a lower price. To maintain the supply of these parts, they motivate customers to return them for a core charge refund. This incentive is supported by governments, as it reduces waste, promotes recycling, and brings affordable re-manufactured parts to the market. It's a win-win for everyone!
💡 Not Every Core Charge is Refundable
Parts may not be accepted for recycling if they don't meet the manufacturer's condition guidelines. To avoid customer confusion, check each supplier's criteria and include these rules in your terms and conditions.
Common Parts with Core Charge
Many parts can include core charges, with some of the most common being:
⚡ Electrical components (Alternators, A/C Compressors, Batteries)
🎚️ Transmissions
🏎️ Engine parts (Cylinder Heads, Turbochargers, ECUs)
👨🏻🔧 Other rebuildable items (Brakes, Water Pumps, etc.)
Core Charge Size
The amount varies depending on the part type, brand, or distributor. For example, batteries may have core charges of $20 to $30, while transmission components can reach several thousand dollars. For exact core charge values, ask the part's supplier or manufacturer first. Regional laws might also set minimum core charge values, so consider checking with your local legal office if necessary.
💡 Do Discounts Reduce Core Charge size?
No, they don’t. Changes made to the 'Sale' field on the Product details page affect only the base price, not the core charge. This is also true for Membership and Wholesale pricing. To reduce the core charge value, update its specific field via the Admin Area or use a CSV import feature.
Business Benefits
A core charge is not just a simple environmental deposit; it can also be used as a tool to create various business opportunities:
Cash Flow Buffer 💸: The money collected from customers as core deposits can help cover operational expenses or be reinvested while waiting for the cores to be returned. In many cases, customers may not return the cores at all, so the deposit can effectively serve as an additional source of revenue for your store.
New Market 📈: As a seller, you don’t have to send the core back to the manufacturer. If you can repair car parts, the returned cores can become part of your stock, giving you more products to sell and an additional way to make money.
Cross-Sales 🤩: A core charge ties customers to your store, as they can only reclaim their deposit back from you, not from other dealers or the manufacturer. If they try selling the old part elsewhere, like a scrapyard, they'll get much less money. So, after buying a replacement, they'll likely contact you to return the old part and get their full deposit back. Use this chance to discuss other products or alternative refund options to keep the money in your business.
💡 What are the Alternative Refund Options?
Gift card equal to the core charge value,
Discount on the next purchase,
Customer credit, etc.
Regardless of the refund option, you must provide a proof to the manufacturer that you paid the core deposit back.
Refunding Core Charge
Step-by-Step Guide
Follow these steps to process core charge refunds. This guide may vary based on the supplier, your terms, and the specific case.
💡 Manage expectations
It's best to explain core charges and refund options to customers at the time of sale.
1️⃣ Initial purchase
Customer buys a part, paying the item price plus a core charge.
📋 The A/C compressor listing price is $900, of which $700 is the item's value and $200 is the core charge.
2️⃣ Core return
Customer send their core back to you or ships it using prepaid labels provided by the manufacturer.
📋 Client sends the old compressor they had.
3️⃣ Inspection
Depending on the previous step, if the core was:
a) Shipped back to you | b) Sent directly to manufacturer using a prepaid label |
| Wait for the check process to be completed. This may take up to 8 weeks, depending on the part type. |
4️⃣ Issuing Refunds
If eligible, refund by check, credit the original payment, or suggest other refund options as per your terms.
📋 Refund $200. Generate a refund receipt, and adjust the invoice accordingly.
5️⃣ Documentation
Keep records of core returns and refunds for accurate management. Note any rejected cores due to damage or not following return policies.
📋 Contact the supplier to recover the $200 refund. Provide transaction records, refund receipt, customer communication, and core charge policy.
Refund FAQs
🚚 Who Pays for Shipping?
It varies by supplier. Usually, customers pay to ship the core back to you, and the manufacturer covers pickup costs from you. Although, some suppliers provide prepaid labels for direct customer pickup. You can arrange as needed, just state it in your terms.
🏛️ Are Taxes Applied to Core Charge?
Yes, taxes are calculated on the Total Price, which includes a core charge. As tax rates and laws vary by state, consult your local tax professional for specific information.
🔍 Does the returned core have to match the original model or brand, or be originally bought from my store, for a refund?
No, it doesn't. As long as it's the same type of product and re-usable, you can refund the core charge and get a credit from supplier.
❌ Do not refund the charge | ✅ Refund the charge |
Customer buys a transmission and tries to return a battery instead of the old transmission for a core charge refund. | Customer buys a Bosch A/C compressor and returns an old one from DENSO bought elsewhere. |
Setting Up Core Charge
You can set core charge in three ways:
In the Admin Area.
Through catalog integrations such as Turn14 or Keystone.
By importing values in bulk from a CSV file.
Admin area
Product details page
Go to Catalog › Products.
Click on the title of the item you want to edit.
Within the Info tab, scroll down to the Prices & Inventory section.
There, you will find the
'Core Charge'field 1️⃣, which you can edit.Click
‘Update product’2️⃣ to save changes.
IMG 1 – Prices & Inventory
Product Variations
You can also set different core charge values for product variations (requires 🧩 Product Variations add-on to work).
To do that:
Go to the Variations tab of the Product Details page 1️⃣.
Scroll down to the variations table.
Adjust the values in the Core Charge column 2️⃣.
Click
‘Save changes’before leaving the page 3️⃣.
IMG 2 – Product Variations
Order Page
Sometimes, it's necessary to change the core charge values on a placed order. For instance, if a customer returns a car part in bad condition, the supplier might only give partial credit for a core, following their policy. In this case, you'll need to reduce the invoice amount to keep accurate financial records.
📋 If a core worth $50 is valued at $25 due to damage, the invoice should reflect this lower amount.
To adjust core charge on a placed order:
Go to Orders.
Click on the
'Order #'you want to adjust.Within the General Info tab, scroll to Order items table.
Input a new value into the selected field 1️⃣ of Core Charge column.
Click 'Recalculate totals' 2️⃣.
Press
‘Save changes’💾.
IMG 3 – Orders Page
* Changes made here will only apply to the selected order. To change the core charge of an item, adjust it on the Product Details page.
You can also view the core charge values per each product and as part of the Subtotal amount via the Shipments (requires 🧩 Split Shipments add-on to work) and Invoice tabs. This information will be added to customer invoice as well.
IMG 4 – Shipments
Catalogs
When adding products from catalogs, X-Cart automatically includes the core charge in the correct field if that information is available. When the core charge is not provided, you can import the values using a CSV file.
💡 Core Charge Availability
Not all catalog providers include core charge data; only stock suppliers like Turn14, Keystone, and Meyer Distributing do. Even then some parts or brands within these catalogs may not include such information.
CSV File Import
The add-on introduces a new attribute, 'coreCharge' (see IMG 5 👇🏻), in CSV files for exporting / importing product lists. This field is optional and can be left blank if desired.
IMG 5 – CSV File
* Sample file was modified for illustrative purposes. The actual CSV file will differ.
There are two ways to add core charge values to products via CSV file import:
Create a new CSV file and fill it manually.
Export existing products from X-Cart Admin, edit the file, and re-import.
In both cases, the only columns you need to fill are 'sku', 'name', and 'coreCharge'. Other columns can be left as they are or deleted for easier navigation within the file.
Add-on Settings
Core Charge Add-on has a single setting: choosing how to calculate the Save price for the Market Price feature.
💡 What is Save Price?
It's the difference between your price and the average market price for the same product. This discount is displayed to attract more customers to your listings.
To adjust this setting:
Navigate to Apps › My Apps.
Search for the "Core Charge" add-on and click
'Settings'.On the Settings page, choose one of these options:
Calculate as Base Price | Save Price = Use it if your market prices exclude the core charge. |
Calculate as Base Price + Core Charge | Save Price = Use it if your market prices include the core charge. |
Choose the option that aligns with your market price setup, as incorrect setting can lead to:
Unrealistically high Save Price, making your business seem untrustworthy.
Low or negative Save Price, discouraging purchases.
IMG 6 – Core Charge Settings
💾 Remember to apply changes before leaving the page by clicking 'Submit'.
Customer Experience
Buyers will see the core charge everywhere the price is displayed, including:
Product lists
Search results
Product details page
Shopping cart (and mini cart)
Checkout page
IMG 7 – Product Details Page
Invoices
The core charge is also shown on the order 🧾 invoice. It appears as a separate line item or within the pricing details of the relevant products. Check the invoice example at the very bottom of the page 👇🏻 to see how it looks.
Can't find answers you're looking for? Email us your question at support@x-cart.com. We will be happy to help you.