Key takeaways
- The landed price is what a customer pays at checkout: item price plus shipping and fees, minus cart discounts.
- Shoppers notice: in Baymard’s research, extra costs are the top reason for abandoning a purchase, after “just browsing”.
- Two stores with the same list price can be far apart at checkout, and the gap often comes from shipping rules, not prices.
- Compare landed prices for a typical basket and delivery location, not single list prices.
Most competitor price tracking compares the number on the product page. Customers don’t. They compare what they’ll actually pay once the product is in the cart and the shipping is added. That number, the landed price, is the one that wins or loses the sale.
What goes into a landed price
| Part | Where it shows up |
|---|---|
| Item price | The product page: the list price, or a sale price. |
| Shipping | Often only at checkout, and it depends on the delivery address and the order value. |
| Fees | Handling, small-order or payment fees, usually at checkout. |
| Cart discounts | Automatic discounts in the cart, or codes from banners, emails and pop-ups. |
| Sales tax or duties | Added at checkout in the US; included in displayed prices in many other countries. |
Customers notice the difference
Surprise costs at checkout are one of the main reasons people abandon a purchase. Baymard Institute’s research puts the average cart abandonment rate at about 70%. Among US shoppers who abandoned for a reason other than “just browsing”, 40% said extra costs such as shipping, taxes and fees were too high, the most common reason given.
So a competitor that looks more expensive on the product page can still win the sale if its checkout total is lower, and the reverse.
Same list price, different landed price
Take two stores selling the same $45 product to the same address:
| Store A | Store B | |
|---|---|---|
| List price | $45.00 | $45.00 |
| Shipping | $6.95 (free over $75) | Free over $40 |
| Cart discount | None | 10% off first order, from a pop-up |
| Landed price | $51.95 | $40.50 |
A tracker reading product pages would call these prices identical. A first-time customer sees a 22% difference. (Illustrative example; sales tax left out.)
Why most price tracking misses it
Landed prices are harder to collect: you have to add the product to the cart, enter a delivery location, and notice discounts that only appear along the way. Traditional price trackers read product pages, because that’s fast and cheap. Tools that use AI agents can go through the cart the way a shopper would, stopping before payment.
How to compare landed prices fairly
- Choose typical delivery locations: two or three ZIP codes where your customers are, since shipping often varies by distance.
- Price a realistic basket, not just one item, because free-shipping thresholds depend on the order value.
- Decide how to treat first-order discounts: they matter for new customers but not for returning ones. Track both views.
- Keep sales tax consistent: include it for everyone or no one.
- Record when and where you checked, because shipping offers and discounts change often.
What to do with it
When your landed price is out of line, the fix isn’t always a lower product price. Matching a competitor’s free-shipping threshold, or making your shipping costs visible earlier, can close the gap more cheaply. See how to respond to a competitor’s price cut.
Terms in this guide
- Landed price: What a customer actually pays at checkout, including shipping, fees and discounts.
- List price: The price shown on the product page, before shipping, fees and cart discounts.
- Free-shipping threshold: The order value above which shipping is free.
- Cart discount: A discount applied in the cart, not shown on the product page.
Sources
- 50 Cart Abandonment Rate Statistics 2026, Baymard Institute, last updated September 22, 2025