Calculating the true cost of imported goods — purchase, freight, duties, insurance, handling — before you price them for sale.
How to apply landed cost analysis
- Include every cost to the shelf
- Model scenarios: air vs sea, terms
- Use landed cost in pricing decisions
The #1 mistake to avoid
Pricing on the PO price and eroding margin.
The metric that matters
Frequently asked questions
What is landed cost analysis?
Calculating the true cost of imported goods — purchase, freight, duties, insurance, handling — before you price them for sale.
Why does landed cost analysis matter for my business?
Because it directly affects how well your business performs — get it wrong and it costs you in measurable ways. Done right, it becomes a competitive advantage.
How do I apply landed cost analysis?
Start with the practical steps: Include every cost to the shelf; Model scenarios: air vs sea, terms; Use landed cost in pricing decisions. The key is to start small, measure, and expand what works.
What is the most common mistake with landed cost analysis?
Pricing on the PO price and eroding margin.
IDAP Trade Division
This glossary entry is maintained by the IDAP Trade division — specialists who deliver this capability on demand to businesses worldwide.