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Using Discounted & Tax-inclusive Pricing

Calculate shipping costs based on promotional prices or tax-inclusive product values

Table of Contents

ShipperHQ filters can use discounted or tax-inclusive prices for products to calculate shipping. These settings help ensure accurate shipping costs when you offer promotional discounts or operate in regions where tax-inclusive pricing is standard.

For example, if you offer free shipping on orders over $50, enabling discounted prices ensures that a $60 order with a $15 discount (bringing it to $45) correctly excludes the customer from free shipping eligibility.

How it works

ShipperHQ receives product pricing information from your ecommerce platform during checkout. By default, ShipperHQ uses the regular product price before any discounts are applied. When you enable discounted pricing, ShipperHQ instead uses the price after promotional discounts have been applied.

The setting you configure applies to all price-based filters and rules within that carrier's configuration, including:

  • Price-based shipping rules and filters
  • Free shipping thresholds
  • Tiered shipping rates based on order value
  • Any other carrier rules that reference product or cart prices

Use Discounted Prices

When you enable discounted prices, ShipperHQ will use the discounted price when evaluating any price-based rules for that carrier.

Go to Carriers › [carrier name] › Advanced and check the Use Discounted Prices checkbox.

 

Platform-Specific Features

BigCommerce

ShipperHQ receives the price configured under the Default Price field in BigCommerce. This price may include or exclude tax depending on your BigCommerce tax configuration. Because BigCommerce does not separately provide the taxed amount, ShipperHQ cannot choose between tax-inclusive and tax-exclusive values.

For more information about BigCommerce tax settings, see Tax Overview (BigCommerce).

Magento/Adobe Commerce

Both discounted pricing and tax-inclusive pricing are fully supported on Magento. Magento provides detailed discount information at the line item level and sends both tax-inclusive and tax-exclusive prices to ShipperHQ.

Tax-inclusive pricing:

Magento sends both tax-inclusive and tax-exclusive prices to ShipperHQ. To use tax-inclusive prices when filtering and calculating rates, go to Carriers › [carrier name] › Advanced and check the Use Tax-Inclusive Prices checkbox. This is useful in regions where displaying prices with tax included is standard practice.

Shopify

Shopify supports discounted pricing with some limitations. Shopify sends ShipperHQ the total discount amount applied to the cart, but does not provide individual line item discounts. ShipperHQ calculates a discount percentage based on the total discount and applies that percentage to each item.

Example: A cart contains three items priced at $30, $40, and $50 (subtotal $120). The customer applies a 25% discount code to the $40 item, creating a $10 discount.

ShipperHQ calculates: $10 ÷ $120 = 8.33% discount percentage

This 8.33% is then applied to all three items:

  • $30 item becomes $27.50 (8.33% off)
  • $40 item becomes $36.67 (8.33% off)
  • $50 item becomes $45.83 (8.33% off)

This approach works well when discounts apply to the entire cart, but creates approximations when discounts target specific products. In the example above, the $40 item actually received a 25% discount, but ShipperHQ treats it as 8.33% off. Similarly, items that received no actual discount will appear partially discounted in ShipperHQ.

Impact on shipping rules:

If you use shipping rules based on individual item prices or shipment values, those rules will evaluate using the approximated discounted prices rather than the actual per-item discounts. The overall cart total will still match Shopify's checkout total.

Additional considerations:

  • The discount calculation includes all items in the cart, even non-shippable items like digital downloads
  • Multiple discounts are combined into a single total discount amount
  • Free shipping discounts do not affect the discount amount used for these calculations

Tax-inclusive pricing is not currently supported on Shopify.

Additional Resources