Definition
Landed cost is what a unit really costs to get into your sellable warehouse: product, international freight, insurance, duty, brokerage, inbound trucking and sometimes packaging — before your fulfilment pick fees. It is the cost figure margin maths should use for imports.
Formula
Worked example
10,000 units, ex-works value £20,000, freight £3,200, duty £1,100, trucking £400 → landed ≈ £24,700 ÷ 10,000 = £2.47/unit (before warehouse pick costs).
Why it matters for replenishment
FOB unit prices lie about margin. Replenishment that ignores landed cost over-orders “cheap” SKUs that are not cheap on the shelf.
How OmniRestock uses this
OmniRestock keeps unit cost in the supplier’s currency on POs and supports multi-currency landed-cost fields for margin views when you buy and sell in different currencies.
Guides & calculators
Educational overview of common shipping terms including Incoterms® 2020 concepts. Not legal, customs or tax advice. Incoterms® is a trademark of the International Chamber of Commerce (ICC). Confirm the exact rule and named place in your contract, and speak to your freight forwarder or adviser for live shipments.