GlossaryCustoms and trade

Landed cost

The total cost of getting a product to the buyer's door: item price, shipping, insurance, duties, taxes and fees.

Landed cost is the full cost of a product once it has arrived at its destination. It includes the product price, international shipping, insurance, customs duties, import taxes such as VAT, and brokerage or handling fees.

For cross-border ecommerce, calculating landed cost at checkout lets the seller show the customer a final price and ship DDP. For importers, it is the true cost of inventory used to set margins.

Accurate landed cost depends on correct product classification, country of origin and customs value, and on current duty rates.

Learn more in our Cross-border shipping articles.

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