What is landed cost?
Landed cost is the total cost of a product once it has arrived at your destination warehouse — including purchase price, freight, insurance, import duties, and taxes. It's the true cost basis for profitability calculations.
Why is landed cost important for pricing?
Sellers who only account for the factory price often underprice products because they forget to include freight, duty, and other import costs. Landed cost ensures your selling price covers all acquisition costs and delivers the margin you need.
What is the difference between FOB and CIF pricing?
FOB (Free on Board) means the supplier is responsible until goods are loaded on the vessel. You arrange and pay for freight and insurance. CIF (Cost, Insurance, Freight) means the supplier includes freight and insurance to the destination port in the price.
Should I include Amazon FBA fees in my landed cost?
Not typically — landed cost covers getting the product to your warehouse. FBA fees are a separate cost of selling. Calculate landed cost first, then layer marketplace fees on top in your profitability model.