Logistics guide
Understanding Landed Cost Before You Import
Bring freight, duties, insurance and handling into one per-unit cost.
What belongs in landed cost
Landed cost starts with the supplier price and adds the expenses required to bring inventory to its usable destination. Freight, duties, customs brokerage, insurance, port charges and inbound handling are common components.
Allocate shipment costs consistently
A shipment containing several SKUs needs an allocation rule. Weight or volume may suit freight, while customs duty may follow declared value and tariff classification. Document the method so later product comparisons use the same basis.
Price from the delivered unit cost
Using factory cost alone overstates margin and can make wholesale quotes unprofitable. Divide total shipment cost by usable units, account for defects or shortages and use that delivered cost as the starting point for retail, wholesale and reorder decisions.
Test the numbers
Use your own current costs and keep a dated note for every marketplace fee, carrier rule or operating assumption that may change.