Orders & Fulfillment
What is landed cost?
Landed cost is the total cost to get a unit into your warehouse and ready to sell: the unit price, freight, insurance, duties and tariffs, customs brokerage, and handling. It is the figure real margin is calculated from, and it is frequently a fifth or more above the supplier’s unit price.
Landed cost has to be allocated per unit, not per shipment, and by value or volume rather than evenly. Spreading a container’s freight equally across items with very different unit values misstates margin on both.
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