The True Landed Cost from China
The factory quote is only the first line item. Here is the full landed-cost formula, a worked example, and the hidden costs that decide whether your product actually makes money.
True landed cost from China is the all-in per-unit cost of getting goods from the factory to your door: unit (FOB) price + international freight + import duty + taxes and clearance fees + quality inspection + agent commission, divided by units. It is typically well above the factory quote — often roughly 20–45% higher depending on the product and destination — and it is the real number you must price above to earn a genuine margin.
Landed cost calculator
Enter your numbers for a live per-unit landed cost. Estimate only — get a live freight quote and your HS code for exact figures.
What goes into landed cost
Six components. Miss any one and your margin is a guess.
A $4.00 factory price is not a $4.00 product
Take a 1,000-piece order quoted at $4.00 FOB — a $4,000 goods value. The factory quote looks clean. But by the time the goods reach your warehouse, freight, duty, taxes, inspection, and commission have all been added.
In the illustration below, landed cost climbs to about $5,859 for the shipment — roughly $5.86 per unit, or about 46% above the factory price. Freight and duty are the biggest swing factors, so always model them with a live freight quote and your correct HS code. Your numbers will differ; the point is that the gap is real and rarely small.
Note: figures are illustrative for a light, part-container order. Bulky or low-value goods where freight dominates can push the premium higher; light, high-value items sit lower.
Illustrative landed cost — 1,000 pcs
- Goods (1,000 × $4.00 FOB)$4,000
- International freight (LCL)$900
- Import duty (6.5% of $4,900)$319
- Taxes & clearance / brokerage$260
- Pre-shipment QC (AQL 2.5)$180
- Agent commission (~5% of FOB)$200
- Total landed cost~$5,859
- Per unit~$5.86 (+46%)
Hidden costs that wreck margins
The line items importers most often forget — budget a 5–10% contingency for them.
FX spread & bank fees
Currency conversion margins and international wire fees quietly add a percent or two to every payment — before you've shipped a thing.
Demurrage & detention
If a container sits at port past its free days, charges accrue daily. Slow paperwork or a customs hold can cost hundreds fast.
Duty & HS-code surprises
The wrong HS classification can mean the wrong tariff. Anti-dumping duties or a customs exam fee can appear where you didn't budget one.
The cost of defects
Skipping inspection is the most expensive saving. Defective goods you've already paid to ship become returns, rework, or a dead order.
Samples, tooling & MOQ
One-off sample and mould/tooling costs amortised over a small first order can dominate the per-unit cost until volumes grow.
Packaging & insurance
Export cartons, pallets, and cargo insurance are real per-shipment costs that rarely appear in the headline factory quote.
Landed cost is your real cost basis for pricing
If you set your selling price off the factory quote, you are pricing off a fiction. Margin has to be measured against landed cost — the true amount each unit costs once it reaches you. Price above the factory quote but below landed cost and you can sell out and still lose money.
This is also why price transparency changes the maths. A trading company folds its markup into the unit price, so your "$4.00" may already contain a hidden 10–30% you can never see or negotiate. A sourcing agent charges a stated commission on the real FOB price, so every line of your landed cost is visible and controllable. Trade Entrust — trading as Trade Entrust Co., Limited, in business since 2014 — has sourced $10M+ across 200+ clients, 7 countries, and 12+ industries from 500+ verified factories, and we quote landed cost as a number you can audit, not guess.
Landed cost from China — FAQ
Know your landed cost before you commit
Tell us your product and target quantity. We'll source verified factories, show the true FOB price, and build a transparent landed-cost breakdown — usually within 24 hours.
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