DOUGEZ sourcing guide
How to Calculate Landed Cost
Quick answer
Calculate landed cost from the product and all costs needed to reach the agreed destination: packaging, development allocations, inspection, freight, insurance, import charges, clearance and local delivery. Divide by usable received units. Keep marketplace selling costs separate when calculating contribution margin.
Fix the shipment scope first
Record the named delivery term and place, destination, currency and quote validity. Identify which costs are already included so you do not count them twice. Obtain freight estimates using actual carton dimensions, gross weight and shipment quantity. Ask a qualified broker or logistics provider to confirm product classification and applicable import charges; this guide does not supply duty rates for an unspecified product.
Use a transparent worksheet
List the product total, retail and export packaging not already included, tooling or sample allocations, agreed inspection and testing, transport, insurance, import charges, clearance and final delivery. Show one-time project costs separately from repeat-order costs. Label each line as quoted, estimated or still unknown. Include the exchange-rate assumption when costs use different currencies.
Work through a hypothetical example
Illustrative arithmetic only, not a DOUGEZ quotation: 1,000 units at USD 3.00 cost USD 3,000. Add USD 400 of packing, USD 150 of inspection, USD 800 of freight and USD 450 of import and local costs. Total: USD 4,800, or USD 4.80 per unit if all 1,000 units are usable. If only 980 are usable, the same total is about USD 4.90 per usable unit. Actual costs depend on the product and shipment.
Test margin after arrival
Landed cost is only the starting point for profitability. Subtract marketplace fees, fulfilment, payment costs, promotion and expected returns from selling revenue to assess contribution. Avoid applying one margin to every SKU when weight, packaging or selling fees differ. Stress-test freight and exchange-rate assumptions before approving a launch; then replace estimates with actual shipment costs for the next decision.
US buyer quotation checklist
For pet products sourced from China for the United States, compare quotations on the same product, quantity, packing and destination basis. A unit price alone is not a delivered-cost comparison.
| Quote line | What to specify |
|---|---|
| Product and currency | Exact model, material, quantity per SKU, USD unit price, quote validity and customization charges. |
| Packing and destination | Units per carton, carton dimensions, gross weight, ZIP code and warehouse or fulfillment-center delivery requirements. |
| Shipping scope | Named trade term and place, shipping origin, freight estimate date, insurance and final delivery scope. Identify every inclusion and exclusion. |
| Import-cost confirmation | Have your customs broker confirm the classification, applicable duties, taxes, fees and importer responsibilities for the exact product and shipment. Do not assume one rate across the catalogue. |
| Sample and timing | Sample cost and courier charge separately; sample approval, production and transit timing separately. A production lead time is not an arrival date. |
| Quality and payment | Approved specification, inspection criteria, payment milestones, claim contact and written resolution terms. |
First order: choose a model, confirm the sample and packing data, then compare the written quotation and delivery scope before committing to bulk production.
Request a US order quotation →What to include in your buying brief
| Area | Information to request |
|---|---|
| Before deposit | Product, packaging, development, inspection and testing scope |
| Before shipment | Actual carton data, named trade term and freight basis |
| At import | Broker-confirmed classification, duties, taxes and clearance |
| After receipt | Usable quantity, actual total cost and separate channel margin |