Landed Cost

Landed Cost is the all-in price of a product once it has arrived at the buyer's warehouse. It marks the separation between a 'Purchase Price' (what you pay the factory) and the 'Total Cost of Ownership' (what you actually spend to stock the item).

Acquisition Formula:

Total = [EXW/FOB Price] + [Freight & Insurance] + [Duties] + [Agent Fees] + [Local Handling]

Understanding landed cost is the difference between a high-growth business and a failing one. Many e-commerce sellers fail because they set their retail prices based on factory costs, only to realize that duties and international shipping eroded their entire 30% margin. Professional traders use the Unit Cost Multiple to understand how much 'tax and travel' is being added to their inventory value.