Our glossary simplifies common industry terms in freight and logistics into clear, easy-to-understand explanations.
Landed Cost refers to the total of all related expenses after goods arrive at their destination and clear customs. This sum includes not only the final price of the goods themselves, but also hidden costs such as international freight, insurance, customs duties, VAT, tallying, and delivery fees. For importers and exporters, a correct understanding of landed cost is crucial for formulating reasonable pricing and profit strategies, avoiding losses or over-pricing that could compromise competitiveness.
When calculating landed cost, it's important to consider the rates of different logistics methods (air, sea, or multimodal transport), as well as the tax system and customs clearance requirements of the destination country. Some digital quotation engines and tariff databases provide real-time tax estimates, helping businesses quickly predict final costs. In cross-border e-commerce scenarios, transparently presenting landed cost on the final product page can reduce consumer dissatisfaction with additional fees, increase purchase intent, and strengthen brand trust.
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