GlossaryEN1 min readUpdated: Jun 22, 2026
Landed Cost
Importers and procurement teams rely on Landed Cost to establish the true total price of imported goods at their destination – well beyond the supplier invoice.
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Source: https://www.investopedia.com/terms/l/landed-cost.asp
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Incoterms 2020 Simulator: Who bears costs & risk?
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Definition & Explanation
Importers and procurement teams rely on Landed Cost to establish the true total price of imported goods at their destination – well beyond the supplier invoice. The figure combines the purchase price with freight charges, insurance premiums, customs duties, import taxes, and all fees for clearance, handling, and warehousing. Accurate Landed Cost calculations are essential for margin analysis, supplier benchmarking, and sourcing decisions across different origin countries. Freight forwarders routinely provide Landed Cost estimates as a client service, itemising every cost component before the purchase order is placed. Not to be confused with the EXW or FOB value, which capture only a portion of the total landed expense.
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