Landed cost is what one unit actually costs you by the time it is sitting in your shop or warehouse. Pricing from the supplier's unit price alone is the most common costing mistake.

A simple structure

  1. Product cost — unit price at your order quantity, multiplied by quantity.
  2. Packaging — inner packing, cartons, and any custom packaging.
  3. Local charges in China — collection and movement to the shipping point.
  4. Freight — air or sea, based on chargeable weight or volume.
  5. Duties, taxes and other applicable charges — these depend on the product category and current regulations.
  6. Local delivery in Bangladesh — port or airport to your location.

Add these together, then divide by the number of sellable units. Note "sellable" — if you expect some damage or defects, account for that rather than assuming every unit sells.

Then work out your margin

Compare your landed cost per unit against a realistic local selling price. Remember to leave room for marketing, delivery to customers, returns and your own time.

Keep the calculation

Save the breakdown for each order. Over a few orders you will build a reliable picture of which product categories work for your business and which do not.

A note on estimates

Rates and charges change. Treat any calculation as an estimate until the specific shipment is quoted and confirmed.

Send us a product requirement and we will review the sourcing options available.