Asendia UK: Frequently Asked Questions

Landed cost is the total cost for the customer to receive the goods, including product price, shipping, duties, taxes, and any processing fees. Customers care because it determines whether the order feels fair and predictable.

DDP (delivered duties paid) usually improves conversion and delivery success because customers pay upfront with no surprise bills. DDU (delivered duties unpaid) can be cheaper for the retailer, but increases refusals, delays, and customer dissatisfaction. The right choice depends on margins, basket size, and market expectations.

If duties and taxes are not prepaid, the carrier or customs broker may collect them from the customer and may add processing fees. These fees often feel unexpected unless clearly explained at checkout.

Use a landed cost calculation approach based on destination rules, HS code, item value, and local tax rates. Present the total clearly and label it in plain language, for example, “Includes estimated duties and taxes” or “All duties and taxes paid”.

EU VAT may apply to goods shipped to EU consumers, and handling depends on value thresholds and the model you use. Many retailers use IOSS for eligible low-value shipments to improve customer experience and reduce delivery friction.

GST is a consumption tax in countries like Australia and New Zealand. It can apply to imported goods sold to consumers, sometimes requiring specific tax handling or declarations. The key is to align checkout tax logic and customs data.

Focus on data quality and pre-advice first: accurate product catalogue fields, electronic customs transmission, and consistent documents. Reduce the risk mix by routing restricted items to approved services and pausing lanes you cannot support reliably.

Often it does, because clearance is smoother when payment responsibilities are clear, and there’s less “payment on arrival” friction. It also reduces the chance of the customer refusing charges, which can stop delivery.

Duty is a tariff applied to goods based on classification and origin, while tax (like VAT/GST) is a consumption tax applied on the sale/import. Both can use, and both depend on destination rules.

Make charges predictable: offer DDP where feasible, show landed cost estimates, and explain whether fees may be collected on arrival. Explicit policy content and checkout messaging are the cheapest lever.

Duties, taxes, and landed cost clarity - Frequently Asked Questions

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