Basic formula: landed cost = goods cost + freight + insurance + duty + additional tariff + brokerage + inspection + domestic delivery.
Start with customs value
For planning, many sellers model customs value as product cost plus international freight and insurance. Your broker may calculate this differently depending on the product, terms, and documentation, so treat the estimate as a decision tool rather than a filing instruction.
Add duty and tariff exposure
The Harmonized Tariff Schedule determines the base duty rate. China-origin products may also face additional trade action tariffs. Verify the final HTS classification in the official USITC HTS search before placing a large order.
Do not stop at landed cost
Amazon FBA, Shopify payment fees, marketplace referral fees, advertising, returns, and fulfillment can turn a product with a cheap supplier quote into a weak business. Use the calculator to model breakeven price and target margin before negotiating.
Quick checklist
- Ask suppliers to separate unit price, packaging cost, and freight.
- Compare EXW, FOB, and DDP quotes on total profit, not quoted unit cost.
- Keep a high-tariff scenario in the model before committing to inventory.
- Save the estimate with the supplier conversation so assumptions do not disappear.
Open the landed cost calculator
Use this guide for planning only. Verify HTS classification, duty rates, tax treatment, and compliance requirements with official sources or a qualified customs professional before placing inventory orders.