Article

Understanding Landed Costs for Ecommerce

A2X · a2xaccounting.com 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.

  • 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
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It answers 2 questions

  1. What's the actual difference between COGS and landed cost, and why does mixing them up wreck my margins?
  2. My factory quote and my actual landed cost are miles apart, what am I missing?

Read with it

  1. A fulfilment provider's practical definition and formula for landed cost, aimed squarely at ecommerce operators rather than... redstagfulfillment.com Article What Is Landed Cost and How Do I Calculate It? Red Stag Fulfillment
  2. An ecommerce-accounting firm's step-by-step COGS formula, useful as the accounting-correct companion to the more operational... ledgergurus.com Article How to Calculate Cost of Goods Sold (COGS) LedgerGurus
  3. Directly connects landed cost to pricing mistakes, the gap founders hit when their factory quote and actual cost turn out to be... fishbowlinventory.com Article Landed Cost: The Hidden Factor in Your Pricing Formula Fishbowl
  4. Video Landed Cost and Margin Spreadsheet Tutorial YouTube
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