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Total Landed Cost (TLC) Inclusive Pricing

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Written by Guido Kaspers
Updated over a week ago

TLC-Inclusive Pricing is a Tax Strategy that includes all costs, such as product, taxes, duties, and import fees, directly in your product price. Your customer pays one clear, upfront price (plus shipping).


Why use TLC-Inclusive Pricing?

  • No surprise fees at delivery

  • Improved conversion: Clear, transparent pricing builds trust.

  • Simplified international sales

  • Compliance without complexity


How It Works

Swap calculates the total cost based on:

  • Destination country

  • HS codes (product classification)

  • Tax and duty rates

  • De minimis thresholds

We then bake all of that into the product price. This is the price shown to customers.

Example

  • Base price: $100

  • Duties and taxes: $20

  • TLC-inclusive price shown on storefront: $120


What Your Customer Sees

  • A single, all-in product price

  • No separate line items for taxes or duties

  • Only shipping is added at checkout


How to Enable It

  1. Go to your Swap Dashboard.

  2. Open the relevant Pricing Zone.

  3. Under Tax Strategy, select TLC Inclusive.

  4. Save your changes.


Orders Below De-Minimis

TLC-inclusive pricing always includes duties—even for orders under de-minimis thresholds. This ensures consistency and eliminates surprise charges.


How Are Duty Rates Determined?

Swap uses a single flat duty rate per country, not product-specific rates. This simplifies setup and helps keep pricing predictable.

⚠ We may slightly overestimate to ensure all costs are covered. You’re only billed for the tax we collect—Swap covers the difference if needed.


Compatibility

  • TLC-Inclusive is only available in countries where VAT-Inclusive Pricing is supported.

  • You cannot use TLC-Inclusive with other tax strategies in the same pricing zone.


Limitations

  • TLC strategy replaces fixed Shopify pricing.

  • Available only on Shopify Advanced or Plus plans.

  • Shopify limits you to 50 active markets.


FAQ

Why don’t the tax lines at checkout match actual fees?

TLC charges are pre-calculated and baked into the product price. Actual duties may differ slightly. We benchmark and adjust over time to stay accurate.

Can I switch between tax strategies?

Yes, but pricing zones tied to an active Pricing Strategy will be locked. To make changes, remove or update the active strategy first.

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