Transportation
Landed Cost
The total cost of a product including purchase price, shipping, customs duties, taxes, and other fees.
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Updated 2025-10-01
Definition
Landed cost gives a complete view of the true expense of importing goods, helping in pricing, budgeting, and profitability analysis.
Overview
Overview
Calculating landed cost ensures businesses understand the full expense before selling imported goods, aiding in informed decision-making.
Components
- Product price
- Shipping and freight
- Customs duties and tariffs
- Insurance and handling fees
Example
A company importing electronics calculates the landed cost by adding shipping, insurance, and import duty to the product purchase price.
Tags
#Landed Cost#Importing#Shipping#Customs#Pricing
Related Terms
Import Duty
Freight Forwarding
Cost-to-Serve Analysis
