How to Calculate Landed Cost for Imported Products

Unit price is only part of it. A worked example of every cost between the factory and your shelf, and how to price for profit.

Landed cost is everything you pay to get one unit to your warehouse, ready to sell. Get it wrong and a product that looks like a 60% margin turns into a loss.

The components

  1. Product cost (at your order quantity)
  2. Packaging, labels, inserts
  3. Domestic China shipping to the agent or port
  4. Agent or sourcing fee
  5. Inspection (see when it's worth paying for)
  6. International freight
  7. Import duty — based on the HS code and your country's tariff
  8. Import VAT or GST where applicable
  9. Customs brokerage and port fees
  10. Delivery from port to warehouse
  11. Payment and currency fees

Worked example

500 ceramic mugs, sea freight LCL to a US warehouse (figures are illustrative):

ItemTotalPer unit
Mugs at ¥14$970$1.94
Gift boxes$140$0.28
Agent fee (7%)$78$0.16
Inspection$120$0.24
Freight (LCL, ~1.6 cbm)$420$0.84
Duty and customs fees$260$0.52
Brokerage and local delivery$300$0.60
Landed$2,288$4.58

The mug cost $1.94; it actually costs $4.58. Selling at $19.99 on Amazon still leaves room — after referral and FBA fees — but the margin is far thinner than the factory price suggests. Check yours with the profit calculator or run your whole catalogue through the batch CSV calculator.

Duty rates change

Tariffs on Chinese-origin goods have shifted repeatedly in recent years, especially for the US. Always check the current rate for your HS code with your customs broker or your government's tariff database before you order — don't rely on last year's number.

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