What is landed cost?
Landed cost is the total cost of getting a product to the buyer’s door: the price of the goods, shipping and insurance, plus the duty, import tax and fees charged at the border. It is what a cross-border order really costs, and what the buyer pays at checkout or on delivery.
Updated
Calculate the landed cost of a parcel, line by line, on live rates.
The breakdown will appear here
Every duty, fee and tax line with the rate used, the de minimis check, any conditional measures, and the total your customer pays to receive the parcel.
- Duties
- Customs duty and any additional duties for this origin
- Fees
- Government processing fees where they apply
- Taxes
- Import VAT or GST, charged on value plus duty
The formula
Landed cost = goods + shipping + insurance + duty + import tax + fees.
Duty is the customs value times the duty rate of the product’s code for its origin, plus any additional duties. Import tax (VAT, GST) is usually charged on the customs value plus the duty. Fees include customs processing fees and, where the carrier charges them, clearance fees.
Why it matters for an online store
If the buyer pays the duty and tax on delivery (DAP), an unexpected bill leads to refused parcels and returns. Showing the landed cost at checkout and collecting it there (DDP) avoids that, but only works if the calculation is right for each product, origin and destination.
Frequently asked questions
Is shipping part of landed cost?
Yes. Shipping and insurance are part of the total, and in countries that value imports on a CIF basis (the EU and the UK) they are also added to the value duty is charged on.
What is the difference between landed cost and duty?
Duty is one part of the landed cost: the tax on the goods set by their tariff code. Landed cost adds the goods, shipping, import tax and fees.