Ecommerce glossary
Landed cost
Landed cost is the full cost of getting a product into sellable inventory: the supplier price plus freight, customs duties, insurance and handling, per unit.
Formula
Landed cost per unit = (Product cost + Freight + Duties + Insurance + Handling) ÷ Units
Example
Supplier price $12 + freight $2 + duty $1.50 per unit = $15.50 landed cost.
In Analify
Use landed cost as the product cost in your Business Brain so Blended Profit reflects what each unit really cost you.
Questions
Why not just use the supplier price?
Freight and duties can add a large share to each unit; leaving them out overstates profit.
How often should landed cost be updated?
Whenever a new shipment arrives at a different cost.
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