Landed Cost Automation for International Shipments & Accurate Margins
Landed cost automation means recording the full cost to get stock to your door—product, freight, duty, fees—and allocating it to the received quantity. That becomes your unit cost for COGS and margin so reporting reflects reality, not just the supplier invoice.
In this article
- What landed cost is and why it matters for inventory
- How to record landed cost when you receive international stock
- Using landed cost for pricing and margin reporting
- What to include in landed cost (table)
Landed cost automation: what is landed cost and why it matters for inventory
Landed cost is the total cost to bring stock into your warehouse: purchase price plus shipping, duty, tariffs, insurance, and any other direct costs. If you only use the supplier invoice price, your COGS and margins are wrong—especially for international shipments where freight and duty can be a big share of cost. Recording landed cost keeps your profitability accurate.
| Component | Included in landed cost |
|---|---|
| Product / purchase price | Yes – supplier invoice |
| Freight / shipping | Yes – allocate to quantity (e.g. per unit or by weight) |
| Duty / tariffs | Yes – allocate to quantity |
| Insurance, handling, fees | Yes – any direct cost to get stock to your door |
| Indirect / overhead | Optional – some companies add a %; often kept separate from unit cost |
How do I record landed cost when I receive international stock?
At goods receipt, you receive the quantity and can add cost adjustments: freight, duty, fees. The system allocates the total landed cost across the received quantity (e.g. per unit or by weight). That unit cost is then used for COGS when you sell. For e-commerce and wholesale distribution, this is often part of the GRN or purchase receipt workflow so every international shipment updates cost correctly.
How do I use landed cost for pricing and margin reporting?
Once landed cost is stored as your unit cost, your reports (margin by product, category, or channel) use that cost. You can see which products and channels are truly profitable after freight and duty. For more on keeping stock and cost under control across channels, see real-time stock syncing across channels.
Handling landed cost isn't optional when you import—it's how you know what you're really making on each sale. Landed cost automation keeps your numbers right so you can price and promote with confidence.