Question 1

What is landed cost?

Accepted Answer

Landed cost is the all-in cost of a product after it reaches your warehouse, 3PL, or door. It includes the supplier invoice plus freight, insurance, duty, customs or brokerage fees, import taxes, inland delivery, and other shipment costs. It is not the factory price.

Question 2

How do you calculate landed cost per unit?

Accepted Answer

Add product cost, freight, and insurance to get the customs value. Apply the duty rate to that value, then add customs fees, import taxes, inland freight, and other fees. Divide the total by the number of units in the shipment.

Question 3

Is duty charged on the factory price or the full shipment?

Accepted Answer

Many import entries assess duty on a customs value that includes product, international freight, and insurance. This calculator uses that CIF-style base. Some countries assess duty on FOB product value only. Use the rule that matches the entry you are modeling.

Question 4

Should I enter costs as totals or per unit?

Accepted Answer

Enter shipment totals and the unit count. The calculator converts those totals into per-unit landed cost. Mixing a per-unit invoice with a total freight bill will overstate or understate the result.

Question 5

Does landed cost include ads, returns, or platform fees?

Accepted Answer

No. Landed cost stops when the goods are available to sell. Customer-acquisition spend, payment processing, returns, storage after receipt, and marketplace fees belong in a separate margin model.

Question 6

Why is landed cost higher than the supplier quote?

Accepted Answer

The quote usually covers only the goods. Freight, duty, brokerage, and last-mile delivery often add 30% to 80% on imported inventory. Compare suppliers on landed cost per sellable unit, not invoice price.

Landed Cost Calculator

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