Landed cost is the total cost of getting your product to a customer. And that means more than just shipping. It also includes the cost of manufacturing the product, duties and taxes, and storage fees – to name just a few!
You can’t run a business without knowing your costs – otherwise, you risk running at a loss! Calculating your total landed cost will allow you to:
Price your products correctly
See where you can make savings, such as switching suppliers
Give your customers a clear breakdown of costs at checkout – which helps to build trust between them and your brand
Dealing with overseas customers/suppliers? Remember to use the right currency for your calculations otherwise you could be out of pocket!
Optimize your supply chain processes. There are always savings to be made. Start here.