Landed Cost Calculation: Determine True Product Cost for Retail Success

Landed Cost Calculation determines the total cost of acquiring a product, including unit price, freight, customs duty, import fees, taxes, and handling charges. It reveals the true cost before resale.

Landed cost is critical for sellers importing terrain, miniatures, or trending toys. It determines whether a product can profitably function as an Amazon FBA product or join an Amazon stocklist. Toy wholesale suppliers also use landed cost to price profitable toys wholesale for retailers. Inaccurate calculation can erase margins or cause mispricing.

Example in practice:

A seller imports neoprene Battle Mat Terrain. The base cost is $10, but after freight, duty, and Amazon prep, the landed cost is $14.85—informing final pricing.

Why does this matter?

Accurate landed cost prevents margin erosion and ensures sustainable profitability.