Free Amazon AI Audit — Will Amazon recommend your product?·No login · Score in 30 sec · Nobody else offers this.Try Free
Category

Research & Analysis

Find opportunities
SourcingJuly 18, 2026·8 min read

Landed Cost: The Number That Decides Whether Your Import Makes Money

The supplier's unit price is the beginning of your cost, not the end of it. Freight, duty and a stack of small fees decide your real margin — here's how to compute landed cost properly before you wire a deposit.

What Landed Cost Actually Includes

Landed cost/unit = unit price + (freight ÷ units) + (unit price × duty %) + (other fees ÷ units)

"Other fees" is where imports quietly get expensive: port handling, documentation, customs brokerage, inland trucking, insurance. Individually small, they routinely add a meaningful percentage to the order.

🚢
Free Landed Cost Calculator — No Signup
Unit price, freight, duty %, other fees → true cost per unit and total investment.
Calculate Landed Cost →

Getting the Duty Rate Right

Import duty is set by your product's HTS classification — not by guesswork and not by your supplier's assurance. Look the code up in the official tariff schedule for your import country, or ask a customs broker to classify it. Two similar-looking products can carry very different rates, and anti-dumping duties on some categories can be dramatic.

⚠️ The Supplier's 'Don't Worry'

A supplier telling you duty is 'very low, no problem' is not a classification. If the product is misclassified at customs, you pay the difference and the penalties — always verify the HTS code independently.

Freight Allocation: Per Unit, Always

Freight is quoted per shipment, but decisions are made per unit. Divide total freight by units to see what shipping really adds to each piece — then re-run the numbers for air vs sea. Air freight's speed premium only makes sense when the per-unit difference is small relative to your margin, or when stockout cost exceeds it.

From Landed Cost to Decision

1
Compute landed cost per unit
With the calculator above — before committing to the order.
2
Feed it into your margin math
Landed cost is the 'product cost' input in the Profit Calculator. Using the bare supplier price there overstates margin every time.
3
Check the MOQ investment
Landed cost × MOQ = real cash commitment. The MOQ Calculator shows the break-even units on top.
4
Keep a landed-cost sheet per SKU
Rates and freight change; re-verify before every reorder rather than reusing last year's number.
💵
Now Run the Margin
Put your landed cost into the free Profit Calculator and see your true per-unit profit on Amazon.
Open Profit Calculator →