Tax-included pretty price

Learn how to apply landed cost with tax-included pretty price.

The tax-included pretty price feature is convenient for businesses aiming to simplify the shopping experience by displaying final prices that include taxes. It helps customers understand the total cost of their purchase without calculating additional charges.

The tax-included pretty price feature allows you to display a price that appeals to your shoppers. This guide will show you how to enable the tax-included price with landed cost.

See Best practice flows by payment type for more information.

Prerequisites

To enable a tax-included pretty price, ensure you have the following prerequisites:

  • Landed cost and tax-included pretty price features must be enabled by Customer Success.

The tax-included pretty price is based on the landed cost feature. Customer Success must enable landed cost and tax-included pretty price to use this feature. Contact your Customer Success Manager for assistance.

To enable a tax-included pretty price, you need to:

  1. Create a price list and enable Prices Include Value Added Tax (VAT).

  2. Set the shipping cost to tax-inclusive.

Creating a price list with a tax-included pretty price

Creating a price list with a tax-included pretty price ensures that product prices are displayed to customers with taxes already included, providing a smoother shopping experience. This process involves configuring your Global Commerce settings to include Value Added Tax (VAT) in the displayed prices. Follow these steps to create a price list incorporating a tax-included pretty price.

  1. Sign in to Global Commerce.

  3. Select Catalog, select Pricing & Plans, and then choose one of the following options:

    • Click Create Price List.

    • Click Manage Price Lists and then click Create Price List.

    The Create Price List page appears.

  4. Complete the fields, and select the Prices Include Value Added Tax (VAT) checkbox to enable tax-inclusive pricing. See Create Price List attributes for more information.

  5. Click Save. The Price List Details page appears.

  6. Complete the fields on the Price List Details page. See the Price List Details attributes for more information.

  7. Scroll down and click Done.

Setting the shipping cost to tax-inclusive

To ensure a seamless customer experience, it is essential to set shipping costs to be tax-inclusive. This configuration prevents double taxation by the shipping carrier and aligns with your store's overall tax-inclusive strategy. Follow these steps to configure your site settings for tax-inclusive shipping costs.

  1. From Global Commerce, select Administration, select Site, then click Configure Site Settings. The Configure Site Settings page appears.

  2. To set the shipping cost to tax exclusive, click the Features tab, scroll down to Input Tax-Inclusive Shipping Cost, and set the toggle for Input Tax-Inclusive Shipping to ON. Digital River will send the tax-inclusive shipping costs to the shipping carrier for the landed cost calculation. This ensures the shopper is not double-taxed by the shipping carrier. Note: If you need to support shipping a product to another locale within a country (non-cross border), and the locale supports the landed cost solution, contact your Customer Success Manager.

  3. Click Apply.

Landed cost without a tax-inclusive pretty price

You may need to disable the tax-inclusive pretty price feature in certain scenarios. This configuration requires that the landed cost solution only accepts Tax Exclusive Product Prices. This approach involves manually calculating and adding a tax-exclusive price to your price list. While this method prevents double taxation and ensures accurate landed cost calculations, it may result in prices that are not as visually appealing to customers. This guide provides a detailed walkthrough on setting up and managing landed costs when tax-inclusive pretty prices are not used.

When you disable the tax-inclusive pretty price, the landed cost solution can only accept the Tax Exclusive Product Price. You need to manually calculate a tax-exclusive price, and then add the tax-exclusive price to the price list. If the tax-inclusive price is $1599, you can back-calculate the product price to $1279.2 without taxes. Digital River rounds the price to $1279 if a locale does not accept decimals.

Product pricing setup:

  • Physical product price (tax exclusive): $1279

  • Shipping cost (tax exclusive): $0 (free shipping)

  • Estimated tax rate configured by Digital River: 25%

In the following table, you can see the final price (orderTotal) is $1598.75. While it's not a pretty price, it's close to the expected $1599.

Cart without address inputCart with address / submit cart

Physical line item

listPrice: 1279

salePrice: 1279

productTax: 319.75

shippingTax: 0

feeTax: 0

taxRate: 0.25

importTax: 0

importDuty: 0

listPrice: 1279

salePrice: 1279

productTax: 0

shippingTax: 0

feeTax: 0

taxRate: 0

importTax: 319.75

importDuty: 0

Order level

subtotal: 1598.75

discount: 0

shippingAndHandling: 0

importTaxAndDuty: 0

tax: 319.75

orderTotal: 1598.75

subtotal: 1598.75

discount: 0

shippingAndHandling: 119

importTaxAndDuty: 319.75

tax: 0

orderTotal: 1598.75

Tax inclusive flag

taxinclusive: false

taxInclusive: false

Landed cost with a tax-inclusive pretty price

When dealing with product pricing, especially in international markets, it's essential to provide clarity to customers regarding the total cost they will incur. A tax-inclusive pricing model displays the final price, including all applicable taxes, upfront. This eliminates surprises at checkout and aligns with a 'pretty price' strategy, where prices appear rounded and more attractive to consumers. Below, we outline the setup and calculation details for providing a tax-inclusive final price of $1599.

Product pricing setup:

  • Physical product price (tax inclusive): $1599

  • Shipping cost (tax exclusive): $0 (free shipping)

  • Estimated tax rate configured by Digital River: 25%

In the following table, you can see the tax-inclusive pretty price in the final price, where the orderTotal is $1599.

Cart without address inputCart with address / submit cart

Physical line item

listPrice: 1599

salePrice: 1599

productTax: 319.8

shippingTax: 0

feeTax: 0

taxRate: 0.25

importTax: 0

importDuty: 0

listPrice: 1599

salePrice: 1599

productTax: 0

shippingTax: 0

feeTax: 0

taxRate: 0

importTax: 319.8

importDuty: 0

Order level

subtotal: 1599

discount: 0

shippingAndHandling: 0

importTaxAndDuty: 0

tax: 319.8

orderTotal: 1599

subtotal: 1599

discount: 0

shippingAndHandling: 119

importTaxAndDuty: 319.8

tax: 0

orderTotal: 1599

Tax inclusive flag

taxInclusive: true

taxInclusive: true

See Pricing fields for more information.

Tax-inclusive pretty price in the shopper's checkout flow

This section guides you through the process of displaying tax-inclusive prices on the shopper's checkout flow. We aim to provide a transparent and predictable shopping experience by ensuring that prices include applicable taxes. This ensures shoppers are fully aware of the total costs, including taxes, before purchasing. The detailed information and API response payloads provided here will help you implement and verify the tax-inclusive pricing in your system.

Cart

This Cart page outlines the various calculated prices and fees associated with the line items and overall order. It focuses on how the tax-inclusive pretty price values are presented to the shopper during checkout, ensuring clarity and consistency in the pricing shown. Here, you'll find details on list prices, sale prices, shipping fees, total order costs, and the corresponding API response payloads for each value.

The callouts in the following list show the API response payloads corresponding with the tax-inclusive pretty price values on the Cart page.

  1. The total calculated price for the line item with quantity (listPriceWithQuantity). You can find it here in the response: "lineItems": { ... "lineItem": { "pricing": { ... "listPriceWithQuantity": { "currency": "USD", "value": 3016.00 ... }, ... } ... } ... }

  2. The total calculated price for the line item with quantity (salePriceWithQuantity). You can find it here in the response: "lineItems": { ... "lineItem": { "pricing": { ... "salePriceWithQuantity": { "currency": "USD", "value": 2413.00 ... }, ... } ... } ... }

  3. The shipping and handling fee of the order (shippindAndHandling). You can find it here in the response: "pricing": { ... "shippingAndHandling": { "currency": "USD", "value": 171.00 }, ... }

  4. The final price of the order (orderTotal). You can find it here in the response: "pricing": { ... "orderTotal": { "currency": "USD", "value": 2513.00 }, ... }

See Pricing fields for more information.

Order review

This Order Review page contains the API response payloads corresponding to the tax-inclusive pretty price values shown on the Order Review page. These details help ensure transparency and accuracy in the final price calculations presented to the customer before completing the order.

The callouts in the following list show the API response payloads corresponding with the tax-inclusive pretty price values that appear on the Order Review page.

  1. The final price of the order (orderTotal). You can find it here in the response: pricing > orderTotal "pricing": { ... "orderTotal": { "currency": "USD", "value": 2684.00 }, ... }

  2. The import taxes and duties of the order, which is the sum of import taxes and duties for all the line items (importTaxAndDuty). Make sure the value for landedCostState is PREPAID. You can find it here in the response: pricing > orderTotal "pricing": { ... "importTaxAndDuty": { "currency": "USD", "value": 152.00 }, ... }

See Pricing fields for more information.

Thank you

Thank You Page Overview

The Thank You page gives users a detailed summary of their completed order. This includes final pricing, import taxes, and duties, all displayed in a tax-inclusive manner. The section below details the key API response payloads contributing to these values.

The callouts in the following list show the API response payloads that correspond with the tax-inclusive pretty price values that appear on the Thank You page.

  1. The final price of the order (orderTotal). You can find it here in the response: "pricing": { ... "orderTotal": { "currency": "USD", "value": 2684.00 }, ... }

See Pricing fields for more information.

Invoice

The Invoice page provides a detailed summary of the order, including the total price for each line item, the shipping and handling fee, and the final price. It also includes information about import taxes and duties applied to the order. This document outlines where to find these details within the API response payloads.

The callouts in the following list show the API response payloads corresponding with the tax-inclusive pretty price values that appear on the Invoice.

  1. The total calculated price for the line item with quantity (salePriceWithQuantity). You can find it here in the response: "lineItems": { ... "lineItem": { "pricing": { ... "salePriceWithQuantity": { "currency": "USD", "value": 2413.00 ... }, ... } ... } ... }

  2. The shipping and handling fee (shippindAndHandling). You can find it here in the response: "pricing": { ... "shippingAndHandling": { "currency": "USD", "value": 171.00 }, ... }

  3. The final price of the order (orderTotal). You can find it here in the response: "pricing": { ... "orderTotal": { "currency": "USD", "value": 2513.00 }, ... }

  4. The order-level import taxes and duties (importTaxAndDuty) is the sum of all line items' import taxes (importTax) and import duties (importDuty). For example:

    • importDutyTax: 75

    • lineItem: A

      • importTax: 15

      • importDuty: 10

    • lineItem: B

      • importTax: 30

      • importDuty: 20

    Make sure the value for landedCostState is PREPAID. You can find it here in the response: "pricing": { ... "importTaxAndDuty": { "currency": "USD", "value": 75.00 }, ... "importTax": { "currency": "USD", "value": 15.00 }, ... "importDuty": { "currency": "USD", "value": 10.00 }, ... "importTax": { "currency": "USD", "value": 30.00 }, ... "importDuty": { "currency": "USD", "value": 20.00 }, ... }

See Pricing fields for more information.

Additional pricing information

This section provides detailed information on additional pricing elements included in the Invoice. This breakdown clarifies various components of the tax-inclusive pretty price, enabling you to understand and verify the total calculations presented.

The callouts in the following list show the API response payloads corresponding with the tax-inclusive pretty price values that appear on the Invoice as additional pricing information.

  1. The total calculated price for the line item with quantity (salePriceWithQuantity). You can find it here in the response: "lineItems": { ... "lineItem": { "pricing": { ... "salePriceWithQuantity": { "currency": "USD", "value": 2261.00 ... }, ... } ... } ... }

  2. The tax amount for the product (productTax) at the line-item level with quantity. You can find it here in the response: "lineItems": { ... "lineItem": { ... "id="488822300023", ... "pricing": { ... "productTax": { "currency": "USD", "value": 0.00 ... }, ... } ... } "lineItem": { ... "id="488822300024", ... "pricing": { ... "productTax": { "currency": "USD", "value": 5.00 ... }, ... } ... } ... }

  3. The sum of the import tax (importTax) and import duty (importDuty). (Make sure the value for landedCostState is PREPAID.) You can find it here in the response: "lineItems": { ... "lineItem": { ... "id="488822300023", ... "pricing": { ... "importTax": { "currency": "USD", "value": 103.00 }, ... "importDuty": { "currency": "USD", "value": 49.00 }, ... } "lineItem": { ... "id="488822300024", ... "pricing": { ... "importTax": { "currency": "USD", "value": 0.00 }, ... "importDuty": { "currency": "USD", "value": 0.00 }, ... } ... }

  4. The sale price with quantity (salePriceWithQuantity) excluding the import tax (importTax) and import duty (importDuty). "lineItems": { ... "lineItem": { ... "id="488822300023", ... "pricing": { ... "salePriceWithQuantity": { "currency": "USD", "value": 2413.00 }, ... } "lineItem": { ... "id="488822300024", ... "pricing": { ... "salePriceWithQuantity": { "currency": "USD", "value": 100.00 }, ... } ... }

  5. The shipping and handling fee (shippindAndHandling). You can find it here in the response: "pricing": { ... "shippingAndHandling": { "currency": "USD", "value": 171.00 }, ... }

  6. The sum of import taxes and duties for all the line items (importTaxAndDuty). Make sure the value for landedCostState is PREPAID. You can find it here in the response: "pricing": { ... "importTaxAndDuty": { "currency": "USD", "value": 152.00 }, ... }

  7. The sum of all taxes (tax) for the order. You can find it here in the response: "pricing": { ... "tax": { "currency": "USD", "value": 5.00 }, ... }

  8. The final price of the order (orderTotal). You can find it here in the response: "pricing": { ... "orderTotal": { "currency": "USD", "value": 2684.00 }, ... }

See Pricing fields for more information.

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