Landed cost
Landed cost is the full per-unit cost of getting a product to the point where it can be sold: factory price plus freight, duties, insurance, and handling.
The factory quote is only the start. Freight, customs duties, import taxes, inspection, and last-mile delivery to the warehouse all add to what each unit really cost you. Landed cost divides that full total across the units in the shipment.
Comparing products or suppliers on factory price alone is a classic sourcing mistake: a cheaper quote from a supplier whose shipping terms push freight and duty onto you can land more expensive than a dearer all-in one.
Why it matters
Margins calculated from the factory price instead of landed cost flatter every product, and the gap is usually largest on the heavy, bulky items that looked cheapest.
Related terms
See Landed cost on real products
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