Ecommerce
Product Landed Cost Calculator
Spread shipping, duty and extras across a shipment so you know the true cost per unit.
What is landed cost?
Factory price is only the start. Freight, insurance, duty and broker fees belong in the unit cost before you set a selling price. Customs rules differ by country — enter the duty you were actually charged or quoted. Allocate freight per unit by weight or by value, but pick one method and stay consistent across SKUs. Domestic courier into your 3PL still counts if stock is not sellable without it. Split duty detail with import duty cost, then price using reverse margin or product pricing scenario. Check unit cash with product profit. Not customs or tax advice. Air freight versus sea freight can double landed cost on light goods — run both scenarios before you promise a launch date. Insurance claims need documented values; keep the same unit cost basis you used for duty. Refresh landed cost when packaging changes weight tiers on the carrier invoice.
Worked example
Factory £4.20 per unit, sea freight and insurance allocating £0.55, duty £0.18, broker and handling £0.12, inbound courier £0.10 → landed cost about £5.15. Pricing at a 45% margin needs roughly £5.15 ÷ 0.55 ≈ £9.36 before marketplace fees — fees then push the ticket higher still.
Limits and assumptions
Exchange-rate moves between PO and entry are not modelled live. Demurrage and storage at port need manual lines when they happen. Not a customs declaration.
Frequently asked questions
What is landed cost?
The full cost to get one unit into your warehouse, including product, freight, insurance, duty and related fees.
Should I allocate freight per unit by weight or by value?
Pick one method and stay consistent. Weight suits dense goods; value can suit mixed high-value SKUs.
Do I include domestic courier to my 3PL?
Yes if that leg is required to make stock sellable — it is part of getting goods ready to ship to customers.
Where does packaging go?
Export cartons often sit in freight; retail packaging ready for the customer usually sits in product cost.
How often should I refresh landed cost?
Whenever freight rates, duty or FX move enough to change pricing — many importers review each shipment.