Stop Guessing Your Profitability
The biggest mistake e-commerce founders make is focusing on the "unit cost" from their factory. If an item costs $10 but costs $4 to ship and $2 in import duties, your actual cost is $16. If your math is wrong, you’re losing money before the first sale is even made.
The Landed Cost Formula
Our calculator uses the standard CIF (Cost, Insurance, and Freight) method preferred by most customs authorities:
- Unit Cost × Quantity
- + Shipping Cost (Air or Sea)
- + Duty & Tariffs (Customs Rate % × [Cost + Shipping + Insurance])
- + Handling Fees (Port fees, local delivery, customs brokerage)
- = Total Landed Cost
Pro Tip: The 3-Supplier Comparison
Always use the comparison table below to test "What If" scenarios. Sometimes paying more for a manufacturer in the USA or Mexico results in a lower landed cost because you save 25% on tariffs and thousands on sea freight compared to importing from Asia.
Why Landed Cost matters for Stash
Once you know your true landed cost, you should enter it into Stash as the "Internal Cost" for each item. This allows Stash to give you accurate profit reports that actually account for the thousands you spend on shipping and duties.
Importing hundreds of SKUs?
Don't manage complex duty rates and freight costs in spreadsheets. Stash remembers your costs and calculates margins automatically for every sale.
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