How to Calculate Landed Cost for Bags (Wholesale Formula)
Published: August 24, 2026 | 8 min read
Landed cost is the true per-unit cost including everything to your door — essential for pricing and margin. Formula: Landed cost = FOB + ocean/air freight + import duty + brokerage + local delivery + overhead. For a $5 FOB tote with $0.6 freight, 8% duty, and $0.4 handling, landed cost is about $6.30. This guide gives wholesalers a working formula.
The Sourcing Map
| Type | FOB Cost | Retail |
|---|---|---|
| Component | Example | Note |
| FOB unit | $5.00 | Factory price |
| Freight unit | $0.60 | Ocean split |
| Import duty | $0.40 | 8% of FOB |
| Broker + local | $0.30 | Handling |
| Landed cost | $6.30 | True unit cost |
Pair this with the incoterms and Vietnam-vs-china guides for a complete wholesale import playbook.
Materials & Construction
- HS code Drives duty rate.
- Freight quote Per kg or CBM.
- Duty calculator By destination.
MOQ and Pricing
- Any MOQ Cost math is MOQ-independent.
- Volume lowers freight Per-unit freight drops.
- FOB standard Most quotes FOB.
Margin check in the tote buyers guide; crossbody best sellers cover popular bulk merch.
Quality Control
- Invoice matches PO For duty basis.
- Freight audit Confirm charges.
- AQL 2.5 Pre-shipment.
Inspect at AQL 2.5 standards before shipment.
Where to Sell & First Order
- New importers Margin education.
- Amazon sellers Pricing model.
- Distributors Cost control.
Get a Sourcing Catalog & Quote
Get an FOB + landed quote in 24h.
Frequently Asked Questions
What is included in landed cost?
FOB price, international freight, import duty, brokerage, local delivery, and a share of overhead.
How do I price for margin?
Take landed cost, add your target margin (e.g., 50-100% for wholesale), then compare to market retail.
Does volume change landed cost?
Yes — per-unit freight and handling drop as order volume rises, improving margin.