How It Works
Three simple steps to get accurate calculations
1
Enter Product Cost
Input COGS and inbound shipping.
2
Add Operating Costs
Set packaging, fulfillment, and fees.
3
Factor Returns
Include return rate and processing cost.
4
See True Cost
Get landed cost and margin at your price.
Loading True Landed Cost Calculator...
Frequently Asked Questions
What is landed cost?
Landed cost is the total cost to get a product ready to sell: COGS + shipping to warehouse + packaging + fulfillment + allocated returns + fees. It's your true cost per unit sold.
How do returns affect landed cost?
Returns cost money twice: processing the return AND lost product value. At 10% return rate with $5 processing and $10 product loss = $1.50 added to every unit's cost.
What margin should I target?
Minimum 30% gross margin for scale, 40-50% for healthy business, 60%+ for premium brands. Account for marketing costs separately - they'll eat into margin.
How do I reduce landed cost?
Strategies: Negotiate supplier pricing at volume, optimize packaging size/weight, reduce return rate through better descriptions, negotiate fulfillment rates, consider alternative carriers.
Should I include marketing in landed cost?
Traditionally no - landed cost is product cost only. Marketing is tracked separately as CAC. But for profitability, you need landed cost + CAC < selling price for each sale.
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Results are estimates for informational purposes only. Consult professionals for important decisions.