GD Accounting Glossary
Glossary › Landed Cost

Landed Cost

The true cost of getting a product to your door — purchase price plus freight, customs duty, insurance, and handling.

Landed cost is what an item really costs by the time it reaches you: supplier price plus shipping, customs duty, taxes, insurance, and handling charges.

Pricing from supplier cost alone silently gives margin away. Importers who allocate landed costs to each unit know their real gross profit per product and price accordingly.

Related terms
Cost of Goods Sold (COGS) Inventory Markup Gross Profit
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