Landed cost
Total landed cost
Landed cost is the total cost of getting goods to a destination, including purchase price, freight, insurance, duties, clearance, handling and other costs required for receipt.
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Simply put
What it means in ordinary work
It is what the goods really cost once they arrive. Comparing supplier prices without these costs can make an expensive route look cheap.
Why it matters
Cross-border and delivered supply chains can carry significant costs beyond the unit price. Landed cost supports fair comparison and pricing decisions.
A hypothetical in practice
A hypothetical buyer compares two suppliers. The lower unit price includes air freight and import charges that make its landed cost higher than a nearby supplier's delivered price.
Common pitfalls
Duty rates, taxes and transport charges change. Use current rates and state assumptions.
Landed cost is not a customs valuation or tax calculation. Do not present estimates as official determinations.
Scope and limits
Aggregate cost model, not a customs or tax ruling. Include only costs relevant to the comparison and state the destination, date and currency assumptions.
Regional lens
How this lands where you work
The global explanation is canonical. Regional notes are additive, separately sourced and shown with their own review state. They never replace the global meaning.
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As-of date for date-sensitive regional content: 5 November 2026. Read the review policy.