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A fulfilment provider's practical definition and formula for landed cost, aimed squarely at ecommerce operators rather than accountants.
What Is Landed Cost and How Do I Calculate It?
From redstagfulfillment.com by Red Stag Fulfillment
- Landed cost = purchase price + freight + insurance + duties + fees
- Divide total shipment cost by units for per-unit landed cost
- Record inventory at landed cost, not invoice price
