Quick Answer
Landed cost is the total cost to get goods into your warehouse: product (FOB) price plus inland transport, freight, insurance, import duty, VAT/GST, customs broker fees, port charges, and last-mile delivery. It typically adds 15–45% over the product price and must be calculated before ordering to protect your margin.
The Landed Cost Formula
| Component | Typical range |
|---|---|
| Product (FOB) price | Base |
| Freight + insurance | Varies by route/mode |
| Import duty | 0–35%+ of customs value |
| VAT / GST | 0–25% where applicable |
| Broker + port fees | USD 350–1,100 |
| Last-mile delivery | USD 100–800 |
Add every component to get landed cost per unit, then check your margin against it. See China sourcing costs.
Key Takeaways
- Landed cost = product + freight + duties + taxes + fees.
- Typically adds 15–45% over product price.
- Calculate per unit before ordering.
- Duty and VAT are the biggest variables.
Frequently Asked Questions
What is landed cost?
Landed cost is the total cost to get goods into your warehouse — product price plus freight, insurance, import duty, VAT/GST, customs and port fees, and last-mile delivery.
How much does landed cost add over the product price?
Typically 15–45%, driven mainly by freight, import duty, and VAT/GST. High-duty categories and distant destinations sit at the top of that range.
Why calculate landed cost before ordering?
Because comparing suppliers on product price alone hides 15–45% of real cost. Calculating landed cost per unit protects your margin and prevents unprofitable orders.
What is the hardest part of landed cost to estimate?
Usually import duty and VAT/GST, since they depend on the correct HS code and destination rules. Confirm the HS code and rates before ordering.
Can Plutonia calculate my landed cost?
Yes. Plutonia can quote product, freight, and estimated duties to give a landed-cost view before you commit. Submit your product and destination details to start.