Copy and paste into your AI tool
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]
What you'd paste after the divider
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%
01

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.

02

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.

03

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.

What does the Landed Cost Calculator prompt do?
Calculate the true all-in cost to get one unit of inventory from your supplier to an Amazon FBA warehouse. Most sellers undercount landed cost by missing duties, port fees, drayage, or FBA prep — which means their margin calculations are wrong from the start.
What data do I need to use this prompt?
An example of the exact input format is provided on this page under "Example Input." Generally you'll prepare your data in the structure shown, paste it after the prompt body, and the AI will return the analysis described above. If you're missing any inputs, the prompt will ask you what it needs.
How long does this take to set up?
Setup time for this prompt is < 30 mins. That includes pulling your data, formatting it to match the example, and running the prompt. Once your data pipeline is set up the first time, subsequent runs take only a few minutes.
Which AI tool should I use this with?
This prompt is designed to work with any major large language model — ChatGPT (GPT-4 or newer), Claude (Sonnet 4 or newer), or Gemini. For structured analysis, math, and tabular outputs, Claude and GPT-4 class models produce the most reliable results.
Does this prompt work for Shopify or other platforms?
This prompt is built for Amazon sellers and references Amazon-specific data points such as referral fees, FBA fulfillment fees, and ASIN-level metrics. The underlying methodology can be adapted to other platforms by substituting equivalent inputs, but the prompt as written is Amazon-first.
What skill level is required to use this prompt?
This prompt is rated intermediate. Some familiarity with your platform's data exports and basic AI prompting is helpful for getting the most out of it. Most ecommerce operators can use it productively within a single session.
Is this prompt free to use?
Yes. Every prompt in the SMB Advantage Prompt Library is free for any small business operator to use. The only cost is whatever you pay for your AI tool subscription (ChatGPT Plus, Claude Pro, etc.).
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