Finance
Landed cost
Landed cost is the total cost of getting a product to the point of sale, including the supplier price, freight, insurance, customs duties, and inbound handling or fulfilment fees. Landed cost is the figure that should drive pricing and margin decisions.
In plain terms: Everything it cost to get the product into the warehouse, not just the invoice.
Why it matters
Pricing from the supplier invoice is how importers discover their best-selling product is unprofitable. Calculate landed cost per unit before setting price, and recalculate when freight rates or duties move.
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