Article

What Is Landed Cost and How Do I Calculate It?

Red Stag Fulfillment · redstagfulfillment.com Free Beginner

A fulfilment provider's practical definition and formula for landed cost, aimed squarely at ecommerce operators rather than accountants.

  • 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
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The question it answers

  1. What's the actual difference between COGS and landed cost, and why does mixing them up wreck my margins?

Read with it

  1. An ecommerce-accounting platform's clear breakdown of what belongs in landed cost versus COGS, the exact confusion that quietly... a2xaccounting.com Article Understanding Landed Costs for Ecommerce A2X
  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
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