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Fees & Costs

Landed Cost

The full cost of getting one unit into a fulfillment center: the product price plus freight, insurance, customs duties and broker fees.

What Is Landed Cost?

Landed cost is everything it takes to get a unit from the factory to the point where it can be sold - not just the price on the supplier's invoice.

What It Includes

  • Product cost - what you pay the manufacturer or wholesaler
  • Freight - sea, air or road transport, including delivery to the fulfillment center
  • Insurance - cover for the goods in transit
  • Customs duties and tariffs - usually calculated on the customs value of the shipment
  • Broker and handling fees - customs clearance, inspection and prep

Why It Matters

Landed cost is the backbone of your cost of goods sold. If freight or duties rise and the cost recorded against your sales does not, your reported profit reads higher than the money you are actually keeping.

It also differs from what Amazon reimburses: for FBA units lost or damaged before a customer orders them, Amazon pays the sourcing cost, which excludes shipping, handling and customs duties.

How SellerLegend Helps

SellerLegend records COGS by SKU with time-period specific entries, so when your landed cost changes you add a new cost from that date and earlier sales keep the cost they were actually sold at.

Related Terms

COGS (Cost of Goods Sold)

The direct costs of producing or purchasing the products you sell, including manufacturing, shipping to Amazon, and packaging. Essential for calculating true profit.

Profit Margin

The percentage of revenue that remains as profit after deducting all costs (COGS, Amazon fees, PPC, shipping, operating expenses). Net profit margin = (Net Profit ÷ Revenue) × 100.

Tariff (Import Duty)

A tax charged on goods when they are imported into a country. The importer pays it, and it becomes part of the product's landed cost.

Track This in SellerLegend

Cost of Goods Management

Track product costs with time-period specific COGS entry by SKU. Manage historical cost changes, bulk upload costs for hundreds of products, and ensure accurate profit calculations as supplier prices fluctuate over time.

Want to track this metric continuously?

SellerLegend gives you a frequently-updated dashboard with all the Amazon metrics that matter.

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