How calculated inclusive pricing works

Make shopping simple and transparent for your customers by showing them an all-in price with no surprise costs at checkout. Choose exactly what's included in that price for each country: taxes only, or duties, taxes, and fees.

Zonos automatically adjusts your product prices on a per-country basis, monitoring orders and updating rates weekly. Different countries have different expectations for what's included—Zonos takes care of those details so you can focus on growing globally with confidence.

Important: Inclusive pricing works best for catalogs with relatively consistent product types. Before getting started, review the prerequisites to ensure this solution is right for your business.

Inclusive pricing calculations 

Tax inclusive pricing: Zonos uses the standard tax percentages required by each country to calculate the amount that needs to be included in the product price.

Duty inclusive pricing: Rather than calculating a unique duty rate for each item, Zonos applies a flat percentage by country based on your order history and industry standards.

Zonos calculates an inclusive price rate for each market and applies it across all your base catalog item prices. These rates are recalculated every Sunday based on your actual order data, becoming more accurate as your order history grows, to keep your pricing accurate and automatically optimized.

Order visibility 

Orders with inclusive pricing include enhanced visibility in the Zonos Dashboard:

• Inclusive pricing badge in the fulfillment section
• Item details show the breakdown of fees, duties, and taxes built into the product price
• Base price is displayed separately from the inclusive price

Including duties, taxes, and fees 

When setting up inclusive pricing, you can choose which components to include in the product price for each country:

• Taxes only
• Duties, taxes, and fees

Different countries have different expectations for what should be included. For instance, some countries may only expect taxes in their prices, while others may have different de minimis thresholds for duties and taxes.

You can adjust these settings by country at any time through the Zonos Dashboard.

Discounted product prices 

Inclusive pricing supports discounts applied at checkout. Discounts are applied as an order-level discount, and Zonos calculates the duty, tax, and fees with the discount factored into the landed cost. Fees, which are typically fixed amounts, cannot be discounted and will always be billed in full.

Retail price adjustments

When a retail or "compare at" price is set in Shopify, Zonos proportionally adjusts this price with your inclusive price. The adjustment is based on the difference between the product's base price and retail price, ensuring consistency in pricing presentation.

Billing and invoicing 

Your invoice report shows the live landed cost quote breakdown for each inclusive pricing order. To reconcile the billed amount to the inclusive price charged at checkout, a buffer or subsidy line item is applied:

• LANDED_COST_GUARANTEE_BUFFER — Applied when actual duties and taxes were less than the inclusive price Zonos calculated. The buffer represents the margin retained by Zonos.
• LANDED_COST_GUARANTEE_SUBSIDY — Applied when actual duties and taxes were more than the inclusive price Zonos calculated. The subsidy represents the amount Zonos absorbed.

In both cases, the net invoiced amount reflects the inclusive price the customer paid — not the raw landed cost quote. See Invoices for more detail.

Cancellations and refunds 

The full amount will be refunded to the customer. The merchant will be refunded Zonos fees minus payment processing fees (merchant fees).