Glossary term
Landed Cost
The total cost of getting goods to their destination: price, freight, insurance, duty, taxes and handling.
The full cost of a delivered product, not just its price. It brings together the goods, freight, insurance, duty, import taxes, terminal and handling charges, customs brokerage and inland delivery.
It is the only figure that lets sourcing options be compared honestly. A lower unit price from a distant supplier can lose to a nearer one once freight, duty and the working capital tied up in a longer transit are counted - and a duty rate that looks small can dominate for low-value, high-volume goods.