Scenario
A seller is comparing a 500-unit order of stainless steel bottles for Amazon or Shopify. The supplier quotes $6.40 per unit, with $780 international freight, $35 insurance, and $120 brokerage.
At a $19.99 sale price, the quote only makes sense if duty, extra tariff, fulfillment, referral fees, payment fees, and ad spend still leave enough profit per unit.
Cost stack to model
- Goods cost: 500 × $6.40 = $3,200
- Freight and insurance: $815
- Brokerage and domestic delivery: $215
- Duty and tariff: model both base duty and a higher China-origin tariff scenario
- Marketplace, payment, and ad fees: often 20% to 30% of sale price combined
Common mistake
The common mistake is treating the supplier unit price as the product cost. For a bulky bottle, freight per unit and FBA fulfillment can matter as much as the factory quote.
Decision rule
If the target margin price is above the realistic search-result price range, do not force the order. Improve packaging density, negotiate freight, bundle the product, or choose a lighter SKU.
Run this water bottle scenario
This example is for planning only. Verify HTS classification, tariff exposure, Amazon fees, and compliance requirements before ordering inventory.