Landed Cost fee
For its guaranteed landed cost calculation, Zonos charges 2 USD and 10% of duties, taxes, and other import fees, such as country or carrier fees levied per order. This amount is included in the total landed cost calculation in addition to applicable duty, tax, and carrier fees. All landed cost is typically paid for by the shopper at the time of checkout as a "customer-paid fee" and is not burdened by the seller.
With guaranteed landed cost calculations, the API may return the following Zonos fees based on account setup:
Zonos fee breakdown
| Fee type | Description |
|---|---|
| Zonos transaction | 2 USD fee charged for every order |
| Zonos landed cost | 10% of duties,taxes, and non-Zonos fees levied per order |
| Zonos export processing | 5 USD fee levied for customers cross-docking with Zonos |
| Landed cost guarantee | Combined Zonos transaction and landed cost fees |
As part of Landed Cost, Zonos also generally passes on discounts it receives on carrier fees to the retailers, helping to lower the cost of the overall landed cost. See “Landed Cost value” below for further information. Zonos will invoice duties, taxes, and fees for non-checkout customers on a weekly basis.
How landed cost is calculated
For this example, let's say you are exporting a product with a product and shipping value total of 100 USD to a country with an applicable VAT (value-added tax) of 20% and a duty rate of 8%. Additionally, assume there is a 13 USD advancement fee.
To calculate the total duties, taxes, and import fees, you would first add the VAT and the duty. In this case, (100 _ 0.20) + (100 _ 0.08) = 28 USD.
Then add the advancement fee to that total, giving you a total of 28 + 13 = 41 USD.
Finally, Zonos charges 2 USD and a 10% fee on this total amount of duties, taxes, and fees. This equates to a Zonos fee of 2 + (41 * 0.1) = 6.10 USD.
The full calculation is provided below.
How it works
Landed Cost, which includes a guaranteed calculation, is typically paid for by the shopper as a "customer-paid fee" and is not burdened by the seller. Included in the landed cost calculation is the 2 USD + 10% of the duty, tax, and carrier fees paid at the time of checkout by the customer when they purchase goods.
When able, Zonos offers discounts for many carrier fees, which lowers the total landed cost. In many cases, due to the discount, a Zonos guaranteed landed cost is less expensive than a typical DDP (delivery duty paid) or DDU (delivery duty unpaid) shipment with published brokerage and advancements fees.
Landed cost breakdown
| Item (valued at 100 USD) | Cost |
|---|---|
| VAT (20%) | 20.00 USD |
| Duty (8%) | 8.00 USD |
| Advancement fee | 13.00 USD |
| Total duties, taxes, and import fees | 41.00 USD |
| Duties, taxes, and import fees 41 USD | Cost in USD |
|---|---|
| Zonos percentage fee (10%) | 4.10 USD |
| Per order fee 2 USD | 2.00 USD |
| Total Zonos fees | 6.10 USD |
Landed Cost value
Zonos’ charge to guarantee the landed cost is generally less than the brokerage, advancement, DDP service, or COD fees. In the following example, based on a typical average order value (AOV) for an online retailer selling internationally, we see this firsthand. Check out the user guide on import fees to learn more regarding individual fees.
Example order: Product 196 + shipping 27 + duty and tax 46 = 269 USD
Fee breakdown
| Fee type | Example order amount |
|---|---|
| Brokerage fee | 29 CAD -> ~21 USD |
| Advancement fee | 10 USD - 18 USD |
| DDP service fee | 15 USD |
| COD fee | 7 to 15 USD |
| Landed cost guarantee | 6.46 USD |
| Consolidator advancement fee | 2.30 USD |
In addition to providing a guaranteed landed cost valuation, in certain instances, Zonos can also offer discounts for many carrier fees. In such cases, Zonos’ guaranteed landed cost is less expensive than a typical DDP (delivery duty paid) or DDU (delivery duty unpaid) shipment with published brokerage and advancements fees.
Zonos is able to provide merchants with discounts on advancement fees from carriers. On average, the Landed Cost guarantee with Zonos will save you around 50% in advancement fees, which often is more than the Zonos Landed Cost fee. This includes discounts on the following carrier fees:
- UPS disbursement fees
- FedEx advancement fees
- DHL DTP fee of 17 USD
Pricing variations
Non-Zonos shipments where duty and tax are billed to Zonos
Zonos allows for carrier account-level billing of duties and taxes, which occasionally results in non-Zonos shipments being billed to Zonos. In such instances, you will be invoiced for those duties and taxes along with our standard fee of 2 USD and 10% of applicable duties, taxes, and fees. An example of this could include an order on Amazon that was sent DDP but not processed by Zonos. When applicable, Zonos will provide a discount on advancement fees.
DDU desinations
Depending on the destination and service level, DDP may not be an available service. A common example would be offering a postal option to a country where DDP is unavailable. A less common example would be a UPS shipment going from the United States to Senegal, where duties and taxes can only be paid for by the receiver. In these cases, Zonos will provide an estimated duty and tax charge due upon delivery, but it is not guaranteed. The 2 USD fee will still be charged for completed orders or shipments. Since there was no duty and tax collected, a 10% fee will not apply.
Zonos will determine, based on the request, if DDP is available for the requested service level. If DDP is available, a guaranteed quote is returned. In contrast, if DDU is the only available option, the estimate is returned.
No duties or taxes due
When Zonos determines no duties and taxes will be assessed for any reason, Zonos guarantees no duty and tax will be due. A common example would be shipments under the de minimis duty and de minimis tax. Only the 2 USD fee will be charged. If duties or taxes happen to be levied, Zonos is responsible for payment. If duty and taxes are incorrectly collected from the receiver, Zonos will pay the invoice or refund the cost. For any order or shipment that utilizes a Zonos product, 2 USD is charged. If you use Zonos for shipment rating only, you can add 2 USD to your shipping calculation.
Extended guarantee
Zonos can guarantee the landed cost for up to one year for an additional 10% of the duty and tax amount. This is helpful for companies with build-to-made orders or ecommerce subscription services to ensure the buyer doesn’t experience changes in the landed cost.
- UPS and FedEx ground to Canada
- Tiers based on the value of the order
- For ecommerce shipments, it is typically 20 CAD to 48.25 CAD
Pricing
Understand pricing for Zonos Landed Cost.Learn about the fees associated with Zonos Landed Cost and how they are calculated. Landed Cost is a guaranteed calculation of duties, taxes, and import fees for international shipments.