Last updated October 2026 · 1 min read
In this guide 4 sections
Products$10,100
Freight$780
Brokerage and duty$165
Card surcharge$303
Landed cost$11,348 ($226.96 / unit)
Supplier A at $210 a unit lands at $10,850, or $217.00 a unit: about $10 a unit cheaper.
What landed cost includes
- Product cost (unit price × quantity)
- Freight to your door or warehouse
- Insurance
- Customs duties and brokerage (cross-border)
- Non-recoverable taxes and environmental handling fees
- Payment fees (card surcharges, bank wire fees, currency conversion)
- Prep and labelling (marketplace orders)
Recoverable sales taxes, such as GST/HST for registered Canadian businesses, are usually left out because you claim them back.
Worked example
Comparing two offers for 50 printers. Figures are illustrative.
| Cost line | Supplier A | Supplier B |
|---|---|---|
| Unit price | $210.00 | $202.00 |
| Products (50 units) | $10,500.00 | $10,100.00 |
| Freight | $350.00 | $780.00 |
| Brokerage and duty | $0.00 | $165.00 |
| Card surcharge (3%) | $0.00 | $303.00 |
| Landed cost | $10,850.00 | $11,348.00 |
| Per unit | $217.00 | $226.96 |
Supplier B looked $8 cheaper per unit but cost almost $10 more per unit once delivered.
From landed cost to margin
Margin = (selling price − landed cost − selling fees) ÷ selling price. On marketplaces, include referral and fulfilment fees. On a $299 selling price with $45 in fees, Supplier A gives a margin of (299 − 217 − 45) ÷ 299 = 12.4%.
Ways to lower landed cost
- Order full cartons or pallets to reduce freight per unit.
- Consolidate brands into one shipment.
- Pay by wire to avoid card surcharges.
- Ask for supplies and accessories in the same order.
- Use a supplier that ships from your own country to avoid brokerage.
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