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How to calculate landed cost when importing from China

Why factory price alone is not enough to judge the profitability of a sourcing project.

Good sourcing starts with comparable information. The clearer the product brief, the easier it becomes to compare suppliers on more than factory price alone.

Product price

Good sourcing starts with comparable information. The clearer the product brief, the easier it becomes to compare suppliers on more than factory price alone.

The decision should include MOQ, lead time, capacity, available documents, target quality, packaging and logistics cost. A weakness in one area can cancel out an attractive factory quote.

Packaging and QC

The decision should include MOQ, lead time, capacity, available documents, target quality, packaging and logistics cost. A weakness in one area can cancel out an attractive factory quote.

Samples and pre-production approvals then become operational references. Critical criteria should be written, measurable and reusable during quality control.

Freight

Samples and pre-production approvals then become operational references. Critical criteria should be written, measurable and reusable during quality control.

Good sourcing starts with comparable information. The clearer the product brief, the easier it becomes to compare suppliers on more than factory price alone.

Duties and taxes

Good sourcing starts with comparable information. The clearer the product brief, the easier it becomes to compare suppliers on more than factory price alone.

The decision should include MOQ, lead time, capacity, available documents, target quality, packaging and logistics cost. A weakness in one area can cancel out an attractive factory quote.

Storage and fulfillment

The decision should include MOQ, lead time, capacity, available documents, target quality, packaging and logistics cost. A weakness in one area can cancel out an attractive factory quote.

Samples and pre-production approvals then become operational references. Critical criteria should be written, measurable and reusable during quality control.

Final checklist

  • Product price
  • Packaging and QC
  • Freight
  • Duties and taxes
  • Storage and fulfillment
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