Landed costs are the total amount of money it costs to fulfil an order for a customer. Landed costs can include expenses like:
- Raw materials
- Shipping fees
- Currency conversion
- Other incurred costs
If your business ships physical products, determining landed costs are essential for informing your pricing strategy and protecting your bottom line.
In this article, you’ll learn all about landed costs, including how to calculate them and how to reduce them to improve your profit margins.