What Is Landed Cost? How To Calculate It

What you'll get

Shopify's editorial team defines landed cost as everything you have put into a product by the time it reaches the buyer, lists its parts (manufacturing, transport and import duties, shipping and insurance, overhead, and remaining fees and taxes) and works a T-shirt example in which a $2 shirt lands at $6.38. It was written in 2022 for online sellers by a company that sells e-commerce software and fulfillment, so look up current duty rates yourself, but its formula and its advice to compare estimated with actual cost every month work for any maker.