Glossary · Business & Sourcing
What Is Landed Cost?
Landed cost is the total cost of a unit once it is sitting in your warehouse: the FOB price plus freight, insurance, import duty, customs clearance, port charges and inland delivery. It is the number that determines margin, and it can be substantially higher than the price printed on the quotation.
Why it matters when you source
Comparing suppliers on FOB alone misleads you whenever pack size or destination differs, because transport cost scales with volume and weight. Build a landed cost model before negotiating, or you will optimize the smallest part of the number.
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