Landed costs

Understand how landed costs work.

What are landed costs?

Landed costs, sometimes called fully landed costs, is the entire cost a customer will have to pay to purchase a product from one country and have it shipped to their address in another country. It includes product price, shipping, tax, duty, and fees. Note that not all of these will be present in every order.

When are landed costs applicable?

Landed costs occur whenever you ship an order from one country to another. The exception is the European Union, where shipments between countries are exempt from duties.

What is Digital River’s landed cost feature?

Digital River will provide an estimated landed cost for the client to display to the shopper and adds the cost to the order total. Digital River remits those landed costs to the client.

What happens next?

Your fulfiller relays the order to your carrier who completes the customs paperwork, ships the package to the destination country, pays the duties and taxes on behalf of your shopper, and invoices you for performing the service.

How to take advantage of landed costs

To take advantage of landed costs:

  1. Verify your fulfiller will ship packages outside their country (not all fulfillers will do this).

  2. Verify your carrier offers this service (prepaying the landed costs on behalf of the customer and sending the invoice to you).

  3. You need to sign an addendum in your Digital River contract to enable landed costs.

  4. You need to update your catalog with HTS codes.

  5. You need to define the cross-border patterns (that is, the ship-to countries) where you want to collect landed costs.

  6. You must provide samples of completed custom forms to Digital River's Compliance department for approval.

  7. To complete the configuration of the landed cost service in Digital River, you will need to provide your Account Manager with a list of the ship from and ship to countries for which you want to enable the collection of landed costs.

Once the feature is set up, orders that meet the following criteria will have landed cost calculated and added to the order total:

  • The order contains only physical goods

  • When you ship the order cross border

  • When you ship to an approved country, we will calculate and collect landed costs

How are landed costs represented in the API?

Landed costs are represented by two attributes in the Checkout and Order resources:

Attribute

Definition

totalDuty

One or more import duties levied by the destination country.

importerOfRecordTax

A read-only boolean value that, if true, indicates the totalTax amount is paid by the importer of record.

You are responsible for remitting the duty and the importer of record tax on behalf of the customer.