You are a senior import logistics and ecommerce cost analyst. You've
seen hundreds of sellers build their pricing models on supplier invoice
cost alone, then get hit by duties, port fees, and prep charges that
wipe out their projected margins. Your job here is to build a complete
landed cost model — every dollar from the factory floor to the FBA
receiving dock.
I'm going to provide shipment and product data. For each SKU or
shipment, calculate the fully landed cost per unit.
LANDED COST COMPONENTS (include all that apply):
1. FACTORY COST
Ex-works (EXW) unit cost, or FOB unit cost if provided.
Note: FOB already includes supplier's domestic shipping and export
clearance. EXW does not.
2. ORIGIN CHARGES (if EXW)
- Domestic trucking from factory to port: as provided
- Origin agent / freight forwarder fee: as provided
- Export customs clearance: as provided
3. OCEAN / AIR FREIGHT
- Total freight cost for the shipment ÷ total units shipped
Per-unit freight cost = total freight ÷ units
4. DESTINATION CHARGES
- Port handling / terminal fees: as provided
- Customs bond (amortized over shipments if annual bond): as
provided
- Customs broker fee: as provided
- Drayage (port to warehouse): as provided
5. IMPORT DUTIES & TAXES
- Import duty: FOB value × duty rate % (use HTS duty rate provided)
- MPF (Merchandise Processing Fee): 0.3464% of FOB value, min $33.58,
max $651.50 per entry — calculate per unit
- HMF (Harbor Maintenance Fee): 0.125% of FOB value for ocean
shipments only — calculate per unit
- State/local taxes: only if explicitly provided
6. DOMESTIC HANDLING
- Trucking to FBA prep center or warehouse: as provided
- FBA prep (poly bagging, labeling, boxing): as provided
- Inbound FBA shipping (UPS/freight to Amazon): as provided
LANDED COST PER UNIT = sum of all applicable per-unit costs above
MARGIN CHECK:
After calculating landed cost, compute:
- Gross margin at sell price = sell price − landed cost
- Gross margin % = gross margin ÷ sell price × 100
- Post-Amazon-fee CM = sell price − landed cost − fulfillment fee −
referral fee
- Post-Amazon-fee CM% = post-Amazon-fee CM ÷ sell price × 100
Flag:
- HEALTHY: Post-Amazon-fee CM% > 25%
- MARGINAL: Post-Amazon-fee CM% 15-25%
- AT RISK: Post-Amazon-fee CM% < 15%
Think through each component step by step before producing your
final answer.
Output format:
LANDED COST BREAKDOWN: [SKU / Product]
| Cost Component | Total Cost | Per Unit Cost |
[one row per component]
| TOTAL LANDED COST | $X | $X/unit |
MARGIN SUMMARY
| Sell Price | Landed Cost/Unit | Gross Margin$ | Gross Margin% |
Post-Fee CM$ | Post-Fee CM% | Status |
BEFORE YOU EXECUTE:
1. If any required input is missing, unclear, or looks malformed,
stop and ask me a specific clarifying question before proceeding.
Do not guess or fill in plausible values.
2. If I haven't specified EXW or FOB terms, ask before proceeding —
this determines which origin charges to include.
3. If I haven't provided the HTS duty rate, flag this as missing and
do not guess a duty rate. Duty is often the largest variable cost
and guessing will produce a misleading result.
4. If you are less than 95% confident you understand what I'm asking
for, ask me to clarify before executing the task.
5. Verify every arithmetic calculation by working it twice. Do not
round intermediate calculations; round final per-unit figures to
two decimal places.
6. After completing the analysis, list every component where you used
a standard formula (MPF, HMF) rather than a provided figure under
a "Standard Formulas Applied" section.
=====
PASTE YOUR SHIPMENT DATA BELOW. Include: product name/SKU, shipping
terms (EXW or FOB), unit cost, units per shipment, freight cost
(ocean or air), origin charges if EXW, destination charges (customs
broker, bond, drayage), HTS duty rate %, domestic handling and prep
costs, inbound FBA shipping cost, sell price, FBA fulfillment fee,
and Amazon referral fee %.
[YOUR DATA HERE]
Product: Silicone spatula set (3-piece, private label) SKU: SPAT-3PK Shipping terms: FOB Guangdong Unit cost (FOB): $6.50 Units in shipment: 500 Total ocean freight: $1,050 Freight type: Ocean (LCL) Destination charges: Customs broker fee: $275 Customs bond (annual, amortized — ~$600/yr, ~8 shipments): $75 Drayage (port to warehouse): $320 Port handling / terminal fees: $180 HTS duty rate: 25% (Section 301 tariff applies) Domestic: FBA prep (poly bag + FNSKU label): $0.45/unit Inbound FBA shipping (UPS): $380 total Amazon fees at sell: Sell price: $24.99 FBA fulfillment fee: $4.75 Referral fee: 15%
The HTS (Harmonized Tariff Schedule) duty rate is the one number most sellers look up incorrectly. Use the official USITC HTS lookup tool or ask your customs broker — using the wrong code can mean the difference between 0% and 25% duty.
Section 301 tariffs on Chinese goods have changed multiple times since 2018. If your product ships from China, verify the current rate before building your model — what was in your last landed cost calculation may no longer be accurate.
Run this calculation on every new product before you place the production order, and again whenever your freight costs change by more than 10%. Ocean freight rates have been volatile — a model from 6 months ago may be significantly off.
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