How to calculate true landed cost for Amazon FBA
The factory unit price is only the first line of the decision. Build the cost through import, fulfillment, selling fees, advertising, and returns before you fund the MOQ.
Start with the full order cost
For a practical pre-purchase model, add the costs required to manufacture and land the complete order: product, packaging, tooling, samples, inspection, international freight, insurance, brokerage, duty, tariffs, and delivery to the receiving point.
- Keep total charges separate from per-unit charges.
- Allocate one-time costs across the quantity they actually support.
- Record the currency and exchange-rate assumption for every cost.
- Flag missing freight, classification, and packaging evidence rather than silently treating them as zero.
Convert order cost into landed cost per unit
True landed unit cost equals the applicable total landed order cost divided by sellable units. Use sellable units—not merely manufactured units—when a known defect, damage, or inspection allowance changes what can actually be sold.
- Product and packaging per unit
- Allocated tooling, sample, and inspection cost
- Freight and import charges per unit
- Duty and tariff assumptions based on verified classification and origin
Add the Amazon economics
Landed cost is not net profit. Add current referral, fulfillment, storage, inbound placement, returns, advertising, and other program costs from your own Seller Central or Revenue Calculator inputs. Amazon fees vary by category, dimensions, weight, program, season, and shipment method.
- Working selling price and discount assumptions
- Referral and FBA or FBM fulfillment fees
- Storage duration and seasonal rates
- Advertising percentage or cost per order
- Expected returns, refunds, and disposal costs
Run three scenarios before paying the factory
An upside case shows the opportunity, but the working and downside cases protect the purchase decision. Change retail price, advertising, return rate, freight mode, and lead-time assumptions independently so you can see what must remain true for the order to work.
Make the decision with the assumptions visible.
Is the Amazon Revenue Calculator the same as landed-cost analysis?
No. Amazon's calculator helps estimate marketplace fees. You still need a defensible product, freight, import, order-cost, advertising, returns, and cash model.
Should duty be treated as zero when the HS code is missing?
No. Mark it as unresolved and verify the classification and rate. A provisional zero can make a weak quote look artificially attractive.
Can LandedMargin replace a customs broker?
No. It is scenario and decision-support software. Confirm classifications, rates, declarations, and material import decisions with qualified providers.