The product price is only part of the cost of sourcing from China. The true landed cost also includes sampling and tooling, inspection, inland transport, ocean or air freight, insurance, import duties and VAT/GST, customs broker fees, and last-mile delivery — together typically adding 15–45% to the factory price depending on product and destination.
Why Unit Price Is Misleading
Buyers often compare suppliers on unit price alone and are then surprised by the final cost. The fees beyond the product price are predictable, but only if you account for them before ordering. Calculating landed cost up front is what separates a profitable import from a loss.
The Full Cost Breakdown
| Cost component | Typical range | Notes |
|---|---|---|
| Product (FOB) price | Base | Negotiated with the factory |
| Samples & tooling | USD 50–5,000+ | Tooling/moulds for custom products |
| Inspection | USD 200–400 / man-day | Pre-shipment quality control |
| Inland transport (China) | USD 100–800 | Factory to port |
| Ocean freight (FCL) | USD 800–3,500+ | Route and market dependent |
| Insurance | 0.3–0.5% of value | Recommended on all shipments |
| Import duty | 0–35%+ of value | Varies by HS code and country |
| VAT / GST at import | 0–25% | EU, UK, AU, most African markets |
| Customs broker | USD 150–500 | Destination clearance |
| Last-mile delivery | USD 100–800 | Port to warehouse |
One-Off vs. Recurring Costs
Separate one-off costs (tooling, product development, first-sample rounds) from recurring per-order costs (product, inspection, freight, duties). Tooling can make a first order look expensive but is amortised across future runs, so judge unit economics on the steady-state order, not the first.
Calculate Landed Cost Before You Order
Add every component above to reach a true landed cost per unit, then check your margin against it. Our customs and duties guide covers duty and VAT calculation, and a sourcing partner can model landed cost before you commit.
Key Takeaways
- Unit price hides 15–45% in additional landed cost.
- Tooling and samples are one-off; freight and duties recur.
- Always model landed cost before ordering.
- Judge unit economics on the steady-state order.