Landed Cost Calculation for Imported Products

Landed cost is the total cost of getting a product from supplier to sellable inventory. It usually includes product cost, freight, insurance, import duty, customs brokerage, port or handling fees, and domestic delivery.

If landed cost is underestimated, every downstream pricing decision becomes too optimistic.

Landed cost = product cost + international freight + insurance + import duty + customs fees + port fees + domestic transport + inspection or handling allowance.

Per-unit landed cost = total landed cost / sellable units. If some units are damaged or unsellable, calculate using sellable units instead of purchased units.

Once landed cost is known, add marketplace fees, fulfillment, payment fees, discounts, and ads to find the minimum profitable selling price.

For new importers, build a small buffer for currency movement, duty classification changes, and supplier packaging differences.