What landed cost means
Landed cost is the real cost of getting inventory into the destination market 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.
FAQ
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.