Glopal Duty & Tax for Shopify
Integrate Glopal with Shopify using our prebuilt app
The app offers two distinct methods tailored for Shopify merchants, enhancing the shopping experience for both merchants and customers.
Key Features
Accurate tax and duty calculation at checkout
Seamless integration with Shopify and Shopify Plus
Enhanced customer experience with transparent landed pricing
For each individual Shopify Market you have configured, you will be able to select from the following use cases:
| Display Price | Description | Impact |
|---|---|---|
Gross All-inclusive Prices | The price shown on product pages is the price paid at checkout. | Buyers pay all inclusive gross price, and merchant will absorb all duties and taxes that may be calculated later. |
Net Exclusive Price in Store | The prices shown on the products page are exclusive of taxes and duties, with them added later at checkout. | Taxes and duties will be calculated by Glopal in the checkout, and charged to the buyer as part of the shipping charge. Shopify Plus users are able to display additional price breakdown in checkout. |
Gross (All-inclusive) Price in Store
Buyers will see and pay the all-inclusive gross price, and the merchant will absorb all duties and taxes that may be calculated later. This is also known as a reverse calculation, where we take an input of the final cost and produce a cost for each item which together with the taxes and duties would become the same as the checkout value.
Benefits
Enhanced Transparency: Customers see the total price upfront, improving trust.
Simplified Pricing: Easier price management for merchants with inclusive rates.
Shopify Plus Advantage: Detailed tax and duty breakdowns enhance customer clarity.
Net (Exclusive) Price in Store
Taxes and duties will be calculated by Glopal in the checkout, and charged to the buyer as part of the shipping charge. Shopify Plus users are able to display additional price breakdowns in checkout. This is known as a forward calculation, where the additional fees (taxes and duties) are added at checkout.
In order to use the Net Pricing model you will first need to switch to Glopal carrier calculated service rather than Shopify’s built-in shipping and parcel estimation. This means you will need to input to Glopal the shipping rates that you currently maintain in Shopify.
Setup
Disable Shopify Taxes: We have included detailed instructions in our FAQ “How do I disable Shopify Taxes?”
Carrier Service Setup: Set up Glopal as the Carrier Service for designated countries.
Rule Configuration: During a session with your Glopal Account Manager you will be able to configure your desired Shipping Prices.
Checkout UI Extension (Shopify Plus): Activate the Checkout UI extension to display a detailed breakdown of Shipping, Duty, and Tax charges.
Benefits
Consistent Margins: Margins are protected from third-state applicable taxes.
Accurate Calculations: Ensures precise tax and duty charges are applied.
Customized Shipping Options: Flexibility in shipping rules and options.
Clear Cost Breakdown: Enhances customer trust with transparent cost details.
FAQ
How do I disable Shopify Taxes?
In order to setup and use Gross reverse calculation you will first need to disable the Shopify Tax Engine and configure your pricing to not include taxes:
Open your Shopify Admin
Settings → Taxes and duties page.
Scroll down to the Tax Calculations section.
To exclude tax from your product prices, uncheck the "All prices include tax" checkbox.
To disable taxes in Shopify, you can set your products to not include taxes - depending on how you’ve configured your Shopify store this can be achieved in multiple ways. For more instructions on exactly how to execute Shopify have a page on their website titled Tax overrides and exemptions which details all the different methods.
Why should I pick net pricing?
This aligns with the diverse tax regulations and compliance requirements of different markets, especially for companies operating internationally.
By displaying net prices, the company can maintain a consistent pricing strategy across various regions, irrespective of the local tax rates. This uniformity in pricing aids in straightforward comparisons with competitors and helps in setting a clear and transparent price structure for customers worldwide.
This method can be particularly beneficial for companies looking to expand their reach across borders, offering them flexibility in pricing and compliance with local tax laws.
Why should I pick gross pricing?
The gross pricing approach is particularly appealing in simplifying the customer experience. When customers see a gross price, they encounter no surprises at checkout, as the price they see is the price they pay.
For companies aiming to provide a straightforward and hassle-free shopping experience, especially in a global market, this method is quite effective.
However, this strategy requires the company to absorb the variability in taxes and duties when shipping to different countries, impacting their profit margins. To manage this, companies often employ sophisticated pricing strategies, taking into account the average tax rates and duties across various markets to ensure overall profitability.
This approach necessitates a deep understanding of international trade regulations and a dynamic pricing model that can adapt to market changes.
Despite the challenges, this method can position the company as customer-centric and easy to transact with, qualities that are highly valued in the competitive e-commerce landscape. By prioritizing customer experience and pricing transparency, companies adopting gross pricing can build strong brand loyalty, which can be a significant competitive advantage.
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