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Landed Cost: The Real Cost of Importing from China

Unit price is not your cost — landed cost is. Here is what goes into it.

The short answer

Landed cost is the total cost to get a product to your door — not just the unit price. It adds freight, insurance, import duty and taxes, customs and handling fees, and last-mile delivery to the goods value. Comparing suppliers on unit price alone is misleading; compare them on landed cost per unit.

What makes up landed costLanded cost is the total cost to get imported goods to your door: the product price (EXW or FOB), international freight, import duty and tariffs, insurance and handling fees, plus customs clearance and last-mile delivery. The chart shows an illustrative share of each component.What makes up landed cost44%20%16%10%10%Product (EXW/FOB)Freight (sea/air)Duty & tariffInsurance & feesCustoms & last-mileLanded cost = everything to get goods to your doorShares are illustrative — actual split varies by product value, weight, HS code duty rate and route.
Figure 1: What makes up landed cost (illustrative shares).
Figure summary: Landed cost is the all-in cost to get goods to your door: product price, international freight, import duty and tariffs, insurance and fees, plus customs clearance and last-mile delivery. Quoting only the unit price hides freight and duty, so always calculate landed cost before comparing suppliers.

What goes into landed cost

Why unit price misleads

Two quotes with the same unit price can have very different landed costs, because the Incoterm, freight and duty differ. A low EXW price with high freight and duty can land dearer than a higher DDP price. The only fair comparison is the all-in landed cost per unit.

How to calculate it

Add every cost from factory to your door, then divide by quantity for the per-unit landed cost. Import duty is usually applied to the customs value (often goods + freight + insurance). Our Landed Cost Calculator does the maths for you — enter the values and it returns the total and per-unit cost.

Work out your real cost
Add freight, duty and fees to see true landed cost per unit.
Open the Landed Cost Calculator →

FAQ

What is landed cost?
The total cost to get a product to your door: goods value plus freight, insurance, import duty and taxes, customs and handling fees, and last-mile delivery.
Why shouldn't I compare suppliers on unit price?
Because Incoterm, freight and duty vary between quotes. A low unit price with high freight and duty can land more expensive than a higher all-in price. Compare on landed cost per unit.
How is landed cost calculated?
Sum every cost from factory to your door, then divide by quantity for per-unit cost. Duty is usually charged on the customs value (often goods plus freight and insurance).

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Import customs & duty →Shipping from China →Landed Cost Calculator →