What landed cost means for ecommerce
Landed cost in ecommerce is the real cost of getting inventory into the destination market, fulfillment center, or warehouse. It usually includes supplier cost, freight, customs duties, VAT or GST, labeling, inspection, warehouse handling, and other import-related expenses. Many sellers underprice products because they only use the supplier quote as the cost base. This calculator spreads shipment-level costs across units so your pricing model starts from a more realistic number.
Use the calculator before placing a purchase order, comparing freight quotes, or deciding whether a product can support advertising. Lightweight but bulky items can look profitable at the sourcing stage and become expensive once dimensional weight is charged. That is why the tool includes package size and dimensional weight guidance.
Practical checks before ordering
- Compare at least two logistics quotes, including delivery time and warehouse appointment reliability.
- For bulky products, test smaller packaging before negotiating only on product cost.
- Model duties and taxes conservatively if you are unsure about the destination market rules.
- Use the final unit landed cost inside the profit calculator before committing ad budget.
Verify the inputs before committing inventory
This calculator allocates the costs you enter; it does not quote freight, determine duty treatment, or replace tax advice. Confirm product, freight, import, and warehouse inputs with current purchase orders, logistics quotes, and invoices. When inventory will end in Amazon FBA, use Amazon's fee and cost estimator to check the product-specific Amazon costs separately before relying on a margin scenario.
Quantity allocation is a planning model. Model products separately when their package size, weight, preparation, or destination differs materially. Page reviewed: July 21, 2026.
FAQ
What is landed cost in ecommerce?
Landed cost is the total cost required to make inventory ready to sell in the destination market. It includes supplier cost plus freight, duties, taxes, prep, labeling, handling, and other import or warehouse costs.
Is landed cost the same as product cost?
No. Product cost is normally the supplier quote. Landed cost includes the additional costs required to get the product into the sales market.