Quick Answer
- Landed cost is everything to get one unit ready to sell: product + shipping + duties/fees + prep, divided by units.
- Formula: landed cost per unit = (product + shipping + fees + prep) ÷ units.
- For resale, divide by sellable units, not total units.
- It's your real cost — the basis for a price that actually profits.
Pricing off the sticker cost is how resellers lose money without noticing. Here's how to calculate landed cost — your true cost per unit — with a simple example.
What is landed cost?
Landed cost is the all-in cost to get a single unit ready to sell. It includes the product price plus every extra: shipping, duties or fees, and any prep or repackaging.
The landed cost formula
Landed cost per unit = (product cost + shipping + duties/fees + prep) ÷ number of units. For resale, use the number of units you can actually sell.
A simple example
Say you buy a case of 100 units for $400, pay $60 shipping and $40 in fees, and 10 units are unsellable. Total cost is $500; sellable units are 90. Landed cost per sellable unit = $500 ÷ 90 = about $5.56 — not the $4.00 the sticker suggested.
Always divide by sellable units. On mixed or returns lots, ignoring unsellable items makes a deal look better than it is. Cost per sellable unit is the honest number.
Why landed cost decides your margin
Margin = (selling price − landed cost) ÷ selling price. Lower your landed cost through cheaper sourcing — like closeout and liquidation inventory — and the same price yields more profit. See how to price wholesale products for profit.
Landed Cost FAQ
What is landed cost?
Landed cost is the total cost to get one unit ready to sell: the product price plus shipping, duties or fees, and any prep or repackaging, divided by the number of units.
What is the landed cost formula?
Landed cost per unit = (product cost + shipping + duties/fees + prep) divided by number of units. For resale, use sellable units, not total units.
Why is landed cost important?
Because pricing off the sticker cost alone ignores the extras that eat your margin. Landed cost is your real cost and the basis for a profitable price.
What should I include in landed cost?
Product cost, inbound shipping, any duties or customs fees, marketplace or prep fees, and repackaging or refurb. For mixed lots, also factor in unsellable units.
How does landed cost affect margin?
Margin = (selling price minus landed cost) divided by selling price. A lower landed cost, from cheaper sourcing, widens your margin at the same price.
Lower your landed cost.
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