The item price is not the amount you end up paying

Working out the total cost of an online purchase means adding up everything that sits between the item price you see and the amount that actually leaves your account. That is more than just delivery. Packaging fees, a surcharge for a particular payment method, possibly customs duty on a delivery from a country outside your own customs area, and sometimes a minimum order value that tempts you into adding another item all belong in the sum.

A shop that looks cheaper at first glance can end up costing more than an offer with a higher item price once these extras are added. The final total in the basket, just before you pay, is therefore the only figure that really counts.

Putting delivery costs in context

Delivery costs vary a lot from shop to shop, sometimes by the weight and size of the parcel, sometimes as a flat fee regardless of the order. Some shops only offer free delivery above a certain threshold, others charge from the very first item. How such a threshold works, and when topping up an order is really worth it, is explained in the article Free delivery above a threshold: how it works. The key is to check delivery for your actual basket, not for a single item, because delivery on several items in one parcel can be calculated differently from a single order.

A worked example

Say an item costs 42.00 euros. The shop charges 4.95 euros for delivery because the basket is below the 50-euro threshold for free delivery. There is no surcharge for paying by credit card, but a payment method with a fee would, in this example, add another 1.20 euros. Without that surcharge the total comes to 46.95 euros, with it to 48.15 euros. A second shop sells the same item for 39.50 euros but charges 7.90 euros for delivery whatever the order value, which makes 47.40 euros. So the first shop, which looked more expensive at first, turns out cheaper once delivery is included, as long as you choose a payment method there without a surcharge.

Payment methods and how they affect the final price

Common payment methods such as bank transfer, credit or debit card, online payment services, buy-now-pay-later options or mobile wallets usually cost you nothing extra. A surcharge is more likely with less common options such as cash on delivery, and it tends to appear only at the very last step before you pay. Glancing at the payment page before you settle on a method saves you a surprise in the final price. If you order from abroad or in a foreign currency, exchange rates and card fees come into play as well, as the article Exchange rates and card fees abroad explains.

Customs and import tax on orders from outside your customs area

If you live in the EU and order from a shop outside the EU, customs duty and import VAT may be added, and these are often not visible when you pay in the shop but only charged on delivery. The same principle applies if you live in the UK, the US, Canada or elsewhere and order from a shop in another country, although each country has its own rules and thresholds. These costs depend on the value and type of goods and are not always easy to estimate before you order. If you regularly buy from abroad, it makes sense to allow for this item as a matter of course, even if it will not always come to the same amount.

Discount codes in relation to the total cost

A discount code usually lowers the item price or the subtotal, but it does not automatically affect delivery charges or payment surcharges. Some codes explicitly apply only to the value of the goods, not to delivery. Before you let a code decide where you buy, it is worth looking at the complete basket after entering it, not just at the discount amount itself. You can find current codes for individual shops in the coupon overview on daily-coupons.info.

Why the cheapest item price is not always the best choice

If you only sort by item price, your comparison is often incomplete. The shop with the lowest displayed price can turn out to be the worse choice because of delivery costs, a minimum order value for free delivery or a longer delivery time, even when the item price itself is right. In the same way, a slightly more expensive item with a suitable discount code and free delivery can work out cheaper than the supposedly cheaper alternative. Only the complete final price in the basket shows which shop is really the better decision.

This matters most with small orders, where delivery costs weigh more heavily relative to the item price than on a larger order, where a flat delivery fee is spread across more items.

A quick routine for checking your basket

Before you pay, take one last look at the full basket: item price, delivery charges, any payment surcharge and, for orders from abroad, a note about possible customs charges. How a product's unit price differs from its total price is explained in the article Unit price in online shops: what has to be shown. If you know both calculations, the unit price for comparing products and the total cost for the actual amount you pay, you make your buying decision on a much more complete basis.

Frequently asked questions

Is a discount code part of the total cost, or does it reduce it?

A valid discount code reduces the total cost, usually through the item price or the subtotal. Whether it also affects delivery charges depends on the individual code, and it is worth checking in the basket once you have entered it.

Why can't I see customs charges when I pay in the shop?

On orders from outside your customs area, such as orders from outside the EU for readers in the EU, customs duty and import tax are often charged on delivery rather than at the shop's checkout. That makes them harder to estimate before ordering than plain delivery costs.

Is it worth topping up an order for free delivery?

That depends on the extra item. Topping up to the free-delivery threshold is only a real saving if you would have needed the additional product anyway. Otherwise it is simply extra spending.

Are payment surcharges the same in every shop?

No, they are handled differently and depend on the payment method and the shop. In practice, if you have a preferred way to pay, check specifically whether a surcharge appears in the basket before you make your final decision.