PRODUCT ACQUISITION ECONOMICS
Landed Cost
Landed cost is the cost of bringing goods to a specified location under a defined cost scope. It commonly combines purchase cost with relevant transport, import and handling costs, while the exact inclusions must be stated.
LANDED COST IN PRACTICE
- Set the boundaryName the destination and included components.
- Collect the chargesReconcile purchase and movement costs.
- Allocate consistentlyApply a documented basis across products.
Use the agreed units, actual records and approved procedures for your operation.
A WORKED EXAMPLE
Purchase price is only the starting point.
Goods cost $1,000 and the defined shipment-to-warehouse costs add $200. Under that illustrative scope, total landed cost is $1,200 before dividing it across the received units using an agreed allocation method.
WHAT THIS MEANS FOR YOUR QUOTE
Agree the requirement before comparing quotes
Use the actual shipment, stock and service requirements. Record the billing unit, included work and responsibility for exceptions.
Put this term to work. Use the 3PL pricing and rates guide for the wider invoice context and the guide to comparing 3PL quotes to compare the same scope, activity profile and billing units.
A LITTLE MORE CONTEXT
Questions about Landed Cost
Is landed cost just purchase price?
No.
Does every company include the same components?
No. State the scope.
Can allocation methods change unit costs?
Yes. Use a documented, consistent basis.
Source & example notes
Sources provide background on the linked topic. Product documentation describes a particular implementation; confirm the rules, contract and procedures that apply to your operation.
Quantities, costs and scenarios are illustrative, not operating targets, approved handling instructions or guarantees. Source guidance reviewed 22 October 2026.
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