Landed cost calculator: the real cost of every unit.
Enter one shipment: units received, the supplier price, and what it cost to get the stock ready to sell. Get the landed cost per unit, and the margin it leaves next to the margin the supplier price suggests.
Works in your browser · pre-filled with a demo store's shipment of camp stoves
Landed cost
| Supplier invoice | |
|---|---|
| Freight, duty, fees & inbound costs | |
| Total landed cost | |
| Landed cost per unit | |
| Supplier price per unit | |
| Cost left out at supplier price | |
| Selling price per unit | |
| Margin on supplier price | |
| Margin on landed cost | |
| Margin overstated by |
DEMO OUTDOOR CO. FIGURES UNTIL YOU CHANGE THEM · NOT A CLIENT
Landed cost: 9,600.00 in total, 24.00 a unit.
The landed cost formula.
Landed cost per unit = (units × supplier price + freight + duty + customs & port fees + inbound shipping and other costs) ÷ units received
Add up everything it took to get one shipment onto a shelf ready to sell, then divide by the units that arrived. The demo store buys 400 camp stoves at 18.50: the supplier invoice is 7,400.00, and freight, duty, broker fees and the truck to the warehouse add another 2,200.00. Total landed cost is 9,600.00, or 24.00 a unit, not 18.50.
Margin = (selling price − cost per unit) ÷ selling price
At a selling price of 45.00, the supplier price suggests a margin of 58.9%. Landed cost gives 46.7%. The 12.2-point gap is cost that was always there, just not in the price you planned with.
Costs of selling a unit once it is ready, such as marketplace fees, payment processing, advertising and shipping to the customer, stay out of landed cost. Put them in the marketplace profit calculator with this landed cost as the item cost. When one freight bill covers several products, split it on one basis, by units, weight or value, and use the same basis every time.
Landed cost on every shipment, in your books.
Our monthly e-commerce bookkeeping records landed cost on every shipment and keeps inventory and cost of goods sold current, with a gross margin by product you can price on.
AnswerWhat is landed cost? Formula and worked example for sellers
What goes in, what stays out, and what booking stock at the supplier price does to your margin.
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