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

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.

Go deeper

3 resources, 3 link-checked.

📄 Article
✓ Link checked Free Beginner

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
▶️ Video
✓ Link checked Free Intermediate

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

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The same ground, over in Build the product, our Starting Up track.

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