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My factory quote and my actual landed cost are miles apart, what am I missing?

The short answer

The usual gaps: freight and insurance (often quoted separately or not at all by the factory), customs duty and IGST (which the factory has no visibility into), packaging that wasn't in the original quote, and a currency-conversion buffer for INR/USD movement between quote and payment. Build a landed-cost spreadsheet per SKU with every line item named, and update it every time freight rates, duty slabs or the exchange rate move, not once and forget it.

A quick summary to orient you. The real value is below: the resources worth your time, from people who've actually done it, not us.

Here are the resources

Hand-picked from around the web, each with a note on why it earns your time. India-specific ones carry a badge.

3 resources 3 link-checked Watch Read

Watch

▶️ Video
✓ Link checked Free Intermediate

Why we picked it A watch-along build of an actual landed-cost-and-margin spreadsheet, useful for founders who want to see the formulas built live rather than copy a static template.

Landed Cost and Margin Spreadsheet Tutorial

On youtube.com by YouTube

  • Builds a landed cost and margin spreadsheet step by step
  • Shows how per-SKU costs roll up into pricing
  • Practical companion to the written landed-cost guides
Watch on YouTube youtube.com

Read

📄 Article
✓ Link checked Free Intermediate

Why we picked it Directly connects landed cost to pricing mistakes, the gap founders hit when their factory quote and actual cost turn out to be miles apart.

Landed Cost: The Hidden Factor in Your Pricing Formula

From fishbowlinventory.com by Fishbowl

  • Pricing off supplier invoice alone is a common, costly mistake
  • Landed cost should directly inform your pricing formula
  • Treat landed cost as dynamic, not a one-time calculation
Open fishbowlinventory.com
📄 Article
✓ Link checked Free Beginner

Why we picked it An ecommerce-accounting platform's clear breakdown of what belongs in landed cost versus COGS, the exact confusion that quietly wrecks new founders' margins.

Understanding Landed Costs for Ecommerce

From a2xaccounting.com by A2X

  • Landed cost is the total cost to get a sellable unit to you
  • COGS is a subset of landed cost, not the whole thing
  • Freight/duty invoices can arrive after the sale, allocate them back
Open a2xaccounting.com

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