How to calculate the total landed cost of imported products?
Category: Blog; Updated: 2018-07-22 11:55:24; Views: 384
I see a lot of new importers on trade shows. They come to China to find a supplier, or a product idea, and they are ready to learn as they go.
The first thing they struggle with is calculating the total landed cost of the product they want to import. If it costs $1 per piece under FOB terms in China, can they deliver it for $2.50 per piece to retailers in their country? Can they sell it $3 online? Will they turn a profit?
I listed the main costs in several categories:
What I call "green dollars" is the hard costs that you can calculate. More about the soft (gray) costs later in this article.
1.1 What you cannot avoid to pay
? Purchasing price from the supplier (including packaging, mold opening...)
? International shipment (under FOB terms), usually managed by a freight forwarder of your choice