Landed cost
Landed cost is the total cost of getting a product to your door: the price plus freight, insurance, duties, taxes and handling.
Landed cost is the total cost of getting a product to your door: the price plus freight, insurance, duties, taxes and handling.
Definition
Landed cost is the full per-shipment or per-unit cost of a purchased item by the time it is delivered and ready for use. It combines the unit price with every charge between the factory gate and your site.
A plain example
Illustrative example only: a buyer receives a quote for a product and adds ocean freight, marine insurance, import duty, a customs broker fee and local trucking. Dividing the total by the number of units gives a landed unit cost that can be compared with a local supplier's quote. Replace the placeholders with your own figures.
Why it matters
Comparing only the ex-works or FOB price can mislead. A cheaper unit price may be offset by freight or duty, while a local supplier may look dearer but include delivery. Landed cost puts both on one footing.
Common confusion
Landed cost is not the same as the price on the invoice, and it depends on the Incoterm that was agreed, since that decides who pays which charges. Rates for duties and freight change, so confirm them with a broker or the official tariff source at the time.
On a project
Build a simple sheet with one column per supplier and one row per cost line. Mark each figure as quoted or estimated, and update it when the quote or the tariff changes.
Quick answers
- What does landed cost usually include? Unit price, freight, insurance, duties and taxes where applicable, and handling to the delivery point.
- Why does the Incoterm matter? It sets which party pays for which part of transport and risk, which changes what you add.
- Where do I get duty rates? From the official customs tariff of the importing country or a licensed broker.
Related terms
Always check the project drawings and specification, and confirm requirements with the engineer of record and the local authority.
Questions people ask
What does landed cost usually include?
Unit price, freight, insurance, duties and taxes where applicable, and handling to the delivery point.
Why does the Incoterm matter?
It sets which party pays for which part of transport and risk, which changes what you add.
Where do I get duty rates?
From the official customs tariff of the importing country or a licensed broker.
Sources and further reading
Have a project outline or drawings?
Organize your scope, then contact Digital Oro through its official channel. Availability, engineering, pricing and delivery terms need project-specific confirmation.
Explore Digital Oro →Digital Oro International advertises on The Company Chronicle. This guide was written by our editorial team from public sources and general professional practice; it does not describe a guarantee, quote or offer from Digital Oro International. Confirm current terms, prices and availability with the operator before you decide.