E-commerce import duty and freight margin calculator
Duty rates are inputs to verify—not levers you can wish away. The useful decision is how freight mode, quantity, retail price, and channel costs change the viability of the order.
Build the verified baseline
Enter the product origin, verified classification assumptions, product and packaging cost, total order quantity, brokerage, and other import charges. Keep uncertain rates visibly marked so the model does not create false precision.
Compare ocean and air on the same order
Ocean usually lowers freight cost but extends lead time. Air can protect a launch date or prevent a stockout, but the higher landed unit cost must be earned back through price, contribution margin, or the value of earlier availability.
- Freight total and freight per sellable unit
- Transit and receiving-time assumption
- Incremental margin required to absorb air freight
- Cash committed before inventory becomes available
- Potential split shipment: urgent units by air, balance by ocean
Test whether retail price can absorb the faster freight
Raise the working retail price only as a scenario—not as an assumption that the market will accept it. Compare the proposed price with your actual category, offer quality, conversion history, and competitive set. LandedMargin can show the required price and resulting margin; market acceptance still needs evidence.
- Current price with ocean freight
- Current price with air freight
- Adjusted price with air freight
- Downside advertising and return-rate case
Use duty correctly
Duty and tariff rates should be verified and held consistent when comparing freight modes for the same product and origin. Their value is showing the complete landed result—not implying an unavoidable rate can be optimized away.
Make the decision with the assumptions visible.
Does changing from ocean to air change the duty rate?
Usually the freight mode itself is not the reason a product's classification rate changes. Verify customs value treatment and applicable rules with a broker.
Can the calculator tell me whether shoppers will accept a higher price?
It can show the price required for a target margin. Market acceptance requires category evidence, testing, and actual conversion data.
What is a split-shipment scenario?
A portion of the order moves by air for speed while the balance moves by ocean for cost. Model each shipment's quantity and freight separately before combining the inventory plan.