What is Landed Cost in Retail? Explained

Landed cost in the retail industry encompasses the total expenses incurred by a retailer to acquire and import a product. This includes the initial cost of goods along with additional expenses like shipping, customs duties, taxes, and handling fees. Calculating the landed cost is essential for accurate pricing strategies and financial planning, providing a comprehensive view of the total investment in a product from its origin to the point of sale. Retailers leverage this information to determine profit margins and make well-informed decisions regarding the sourcing and pricing of their products.