Purchasing

Landed cost

Landed cost is the full cost of a part delivered to your door: unit price plus freight, insurance, duties, customs brokerage, fees and handling.

Comparing quotes on unit price alone favors distant suppliers. A complete comparison also adds tooling amortization, packaging, inventory carried in transit and safety stock, and the cost of quality problems or expedited freight. For Mexico the freight and inventory part is usually much smaller than for Asia, which is why a higher unit price can still give a lower landed cost.

General information, not legal or customs advice. Rules and tariffs change; confirm details for your product with your customs broker.