How to Calculate Landed Cost for Wholesale Bags (With Example)
Published: August 15, 2026 | 7 min read
Landed cost is what a bag truly costs when it reaches your warehouse - the only number that lets you price for profit. Here is the formula and a worked example for imported wholesale bags.
The Formula
Landed cost per unit = (Factory price + Freight + Duty + Fees) / Units
- Factory price - unit ex-works or FOB.
- Freight - ocean/air split per unit.
- Duty - tariff rate times customs value.
- Fees - broker, handling, last-mile.
Worked Example (100 totes, FOB)
| Item | Total | Per unit |
|---|---|---|
| Factory (FOB) | $1,500 | $15.00 |
| Ocean freight | $300 | $3.00 |
| Duty (e.g., 9 percent) | $135 | $1.35 |
| Broker + fees | $65 | $0.65 |
| Landed cost | $2,000 | $20.00 |
Why It Matters
At a $20 landed cost, a $45 retail or $30 wholesale price leaves clear margin after platform and marketing. Skipping this math is how importers lose money. Our duty and freight guides give the rate inputs.
Tips to Lower It
- Consolidate volume to cut per-unit freight.
- Use sea not air for bulk.
- Negotiate FOB and book your own freight.
- Reorder winners to climb the MOQ price tier.
Sample a Avery Structured Tote to scope real numbers.
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Frequently Asked Questions
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What is landed cost?
Total cost per unit when goods reach your warehouse: price + freight + duty + fees.
Why not just use factory price?
Factory price ignores freight, duty, and fees - you would underprice and lose margin.
How do I estimate duty?
Multiply the customs value by the HS 4202 tariff rate for your market.
Does volume lower landed cost?
Yes, freight and tiered pricing both improve per unit at higher volume.
Is sea always cheaper than air?
For bulk, yes; air only wins for urgent, low-volume shipments.