Landed Cost for Imports From China — An Accurate Calculation

Importing from China is one of the most popular ways to profit in eCommerce. But many importers make the same mistake — they price based on supplier cost without calculating Landed Cost using a real imports and procurement module. The result? Significantly lower profits than planned.

What is landed cost, and why is FOB price not enough?

Landed cost is the true price of a product arriving at your warehouse. It includes not just the supplier price, but also international shipping, customs duties, import VAT, insurance, and transportation from port to warehouse.

FOB price — the price at the factory gate in China
Sea or air freight — the difference can be 5x
Customs duties — 0% to 25% depending on product classification
Import VAT — 17% on value + duties
Port to warehouse transport + insurance

Rule of thumb: Landed cost is typically 30%-70% higher than the FOB price. Never price based on FOB alone!

How do you calculate landed cost correctly across a mixed shipment?

In StoreChart, you enter all cost components once — and the system automatically calculates the landed cost per unit. This includes proportional allocation of shipping and customs costs across all products in the shipment, split by weight, volume, or value depending on which method best reflects how the carrier actually billed you.

This matters most when a single container carries several different SKUs at very different price points: allocating a flat customs fee equally per unit, instead of proportionally by value, can make a cheap product look unprofitable and an expensive one look artificially cheap.

Enter supplier invoice with all items
Add shipping, customs, and insurance costs
Automatic allocation by weight, volume, or value
Per-unit cost calculation in local currency and source currency

How does StoreChart track a purchase order from factory to warehouse shelf?

StoreChart's procurement module is built specifically for importers. From Purchase Order to warehouse receipt, everything is documented and calculated.

Create Purchase Orders with full details
Track shipment status — production, transit, customs, receipt
Automatic inventory receipt with barcode scanning
Automatic landed cost calculation on receipt

Store all import documents (Packing List, B/L, Invoice) in StoreChart for complete, accessible records.

How do you turn an accurate landed cost into the right retail price?

Once you have accurate landed costs, you can price correctly. StoreChart allows automatic pricing rules: for example, "landed cost + 60% margin" — and prices update across all stores.

Automatic markup rules
Different pricing per sales channel
Alerts when profitability drops below threshold
Automatic price updates across all stores

What import reports actually help you negotiate better with suppliers?

StoreChart provides a complete picture of your imports: how much you paid, how long it took, and the average landed cost per product over time.

Landed cost per product over time
Supplier comparison — who offers better prices
Lead time analysis — order to receipt duration
Annual customs and VAT report for accountants

Summary — Price Right, Profit More

Correct landed cost = correct pricing = real profitability. With StoreChart, you see exactly how much each product from China costs and price accordingly. That's the difference between a business that looks successful and one that actually profits.

Try StoreChart's procurement and import module — start for free

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