How inclusive pricing works

Retain control over your inclusive prices while Zonos takes care of the calculations and the risk. Use our calculated inclusive price or modify it; either way, our calculations will be guaranteed and transparent. With Zonos, you have the flexibility to choose the countries you offer inclusive pricing to and adjust the price as needed. Discounts applied in checkout are easily applied to the landed costs, since they are included in the product price. Our billing system will automatically adjust the inclusive price for each order to reflect the discount used.

How we calculate inclusive pricing 

Inclusive product prices are calculated and displayed before any items are added to a cart, so the order total is unknown. Because of this, we must assume that each order total will be above the de minimis for both duty and tax. If your order history indicates that your orders are often below the de minimis, we can adjust our calculations to take this into account.

Since inclusive pricing is set at a country level, you may opt out of inclusive pricing for countries in which you mostly have orders below their de minimis.

Historical averages

Zonos uses historical averages to predict import costs at the item level before the order is created.

For example, taxes are often due on shipping costs, but shipping costs are not known until checkout. We can use historical data to predict expected shipping costs to charge taxes on. If you average 2 items per order, and you average 10 USD shipping per order, we would assume a 5 USD shipping cost per item and calculate VAT on that shipping cost. That VAT would be included in the product price.

Similarly, Zonos uses historical data to predict carrier fees at the item level. Carrier fees are typically applied once, at the order level. We use the average number of items per order to apply a proportionate carrier fee to the item.

Coming soon: In future versions, we will calculate shipping at the item level so that it can be included in the product price if desired. We will use historical data to average the shipping costs to the specific country to which you have enabled inclusive pricing. We will then use your average items per order to apply a proportionate shipping cost to the item.

Transparency 

As an ecommerce business, your main source of income comes from selling products. When deciding on the prices for your products, it is crucial to find the right balance between making them attractive to buyers and ensuring profitability for your business. To achieve this balance, it is essential to have a clear understanding of where your costs are allocated. With Zonos, you have full visibility into how each inclusive product price is calculated.

Customization 

You may want to display inclusive prices to some countries, but not to others. Additionally, you may want to display a price that differs from the inclusive one that we calculate. Zonos allows you to customize the inclusive price to maximize your conversion.

Choose which countries to enable

Customize your displayed price for different countries by choosing to show landed-cost-included prices in selected regions. For example, display inclusive pricing for shoppers in the UK, and show only the product price to customers in China. If you are unsure which countries to enable inclusive pricing for, select Zonos' recommended countries.

Consider using inclusive pricing in countries where your orders often exceed the de minimis value. You may choose to disable inclusive pricing in countries in which your orders are frequently below the de minimis.

Adjust the calculated price

You can change the price that we calculate before we display it to your customers. There are many ways that you can customize your prices:

Adjust all product prices at once

These adjustments will be applied to all products and can be adjusted at the country level to allow for country-specific pricing initiatives. Any adjustments you make will be recorded as your preferred price in Catalog.

• Increase the cost—If you want to increase our calculations to increase your margin, choose the percentage or amount by which you would like to increase the landed costs by.
• Decrease the cost—If you want to pay for some of the landed cost, choose the percentage or amount that you would like to cover. This will not affect the amount that we bill you (the true inclusive amount)—it will use your margin to lower the cost that is displayed to your customer. Doing so may allow you to improve your ranking in shopping searches or increase conversion.
• Round your prices—This is often called charm or psychological pricing. If you want all of your prices to end in a certain number to make it more attractive to purchase, enter the number you would like to round to, or choose from our recommendations. For the easiest setup, apply Zonos' rounding recommendations for all countries.

Adjust a single product's price

This adjustment can be made at the item level for each country. It will be recorded as your inclusive price override for that item in Catalog.

• Manually adjust the price for specific products to your desired price. If you have found that a certain item sells best at a certain price, manually override our calculated inclusive price. This will not affect the amount that we bill you (the true inclusive amount).

Localize currencies

Allow your customers to shop and pay in their local currency. Zonos can keep prices in your store currency or convert your inclusive prices to your shopper's local currency. By default, Zonos will guarantee your prices in the foreign currency.

If you prefer to control the foreign exchange rate, you can opt-out of our guaranteed foreign exchange and adjust the exchange rate for each currency to your preference. While the exchange rate will no longer be guaranteed, landed costs in your store currency will be. If you wish to do this, please speak to your onboarding Project Manager.

Cancellations and refunds 

Before an order has shipped

If you choose to cancel an order and refund it, we will refund the landed costs that were included in the product price. If you remove an item from an order, we will refund you the landed cost attributed for that item.

After an order has shipped

Duties and taxes are due once the package reaches Customs. At this point, the carrier will pay the landed costs and invoice Zonos for them. Because of this, Zonos will not refund the associated landed costs for items removed after an order ships, or for orders canceled after an order ships.

Discounted product prices 

Inclusive pricing works seamlessly when you offer discounts on your products. Since the landed cost is included in the product price, any discount that your customer applies in the checkout will be attributed to the landed costs proportionately. We will also adjust our inclusive price to accommodate the discount used when we bill you for the duties and taxes.

Recalculations 

Zonos will recalcuate your catalog every month to keep inclusive prices current. Any items that you have manually set an inclusive price override for will retain your manual price.