Most brands start selling internationally with one global price: the US price, converted at today's exchange rate. It is quick to set up, and it quietly costs you. In some markets that price is too low to cover duties, taxes and fees. In others it lands on an awkward number that looks foreign next to local competitors. And when duties appear as a surprise line at checkout, shoppers leave.
We work with brands pricing for 220+ destinations every day, and the ones that get international pricing right all do the same thing: they start from landed cost and price to the market. Here is how we would do it if we were in your seat.
THE SHORT ANSWER
To price products for international markets, calculate the full landed cost for each market, decide which costs to build into the price shoppers see, set a margin floor per market, then round to a local price point that holds up against local competitors. Review prices whenever duty rates, exchange rates or competitor prices move.
1. Start from landed cost, not your home price
Landed cost is everything it takes to get a product to the shopper's door: product cost, shipping, import duty, import taxes such as VAT or GST, and customs and brokerage fees. It differs by market and by product, because duty depends on the HS code and country of origin and tax depends on the destination.
If you price without it, you are guessing at your margin in every market. If you want to check your current numbers first, follow our guide on how to audit your true landed cost before checkout.
2. Decide what goes into the price shoppers see
You have two ways to show international costs. You can show duties and taxes as separate lines at checkout, or you can build them into the product price so shoppers see one all in price from the product page onward.
Shoppers expect to pay for shipping. They do not expect a duty line they never saw coming.
Our recommendation for most brands: include duties, taxes and fees in the product price, and keep shipping as its own line at checkout. That removes the charge most likely to cause sticker shock while keeping shipping options visible. If you would rather show the breakdown, make sure it appears before payment, never after. We cover the checkout side in why shoppers push back on DDP fees at checkout.
3. Set a margin floor for every market
Once you know landed cost by market, set the lowest margin you will accept in each one. Some markets will clear that floor easily at a competitive price. Others will not, and that is useful to know before you spend on acquisition there.
Market clears the floor easily: room to price for conversion or run promotions.
Market just clears the floor: price close to the floor and watch conversion.
Market misses the floor: rethink the product mix for that market, or hold off.
4. Price to the market, not the exchange rate
A converted price like 47.83 looks like what it is: a foreign price. Round to price points shoppers in that market are used to, in their currency, and check where you sit against local competitors for the same kind of product. The goal is a price that feels native to the market and still clears your floor.
5. Protect the price from cost changes
Duty rates, tax thresholds and exchange rates all move. If your landed cost is only an estimate, every change becomes a gap between what the shopper paid and what you owe. That is why we guarantee landed cost at checkout: with FlavorCloud, if duties, taxes or customs fees come in higher than quoted, we absorb the difference. Your price still needs reviewing when costs move, but you are not left paying for a surprise on orders already sold.
6. Start with a few markets, then measure
Localize prices in your top two or three markets first. Watch conversion, average order value and margin by market, then adjust before you roll out further. If you sell on Shopify, you can track localized pricing performance in Shopify Analytics.
Where FlavorCloud fits
We built two tools for this. Localized Market Pricing in the FlavorCloud app for Shopify lets you choose, market by market, whether shipping, duty, tax and fees are included in the price, apply a price adjustment, and sync all in prices to your store in the shopper's currency.
Pricing Intelligence goes further. It recommends a price for each product in each market based on competitor prices, your landed cost and your own rules, including margin floors and rounding. Every recommendation comes with its reasoning, and you approve or override it before it goes live.
FAQs
What is localized pricing?
Setting a price for each international market in local currency, based on what it costs to sell there and what shoppers there expect to pay, instead of converting one home price.
Should I include duties and taxes in my product prices?
For most brands, yes. An all in price removes the surprise at checkout. Keep shipping separate so shoppers can still choose their delivery option.
Does an all in price change my customs declared value?
No. The price you display is separate from the value declared to customs. See declared value and customs valuation.
How often should I review international prices?
Whenever duty rates, tax rules, exchange rates or competitor prices change in a market you sell to, and at least before each peak season.
