Question 1

How do I calculate landed cost?

Accepted Answer

Landed cost is the supplier unit price plus per-unit freight, import duty, inbound receiving and prep, and packaging. A $6 unit routinely lands at $8.50 to $10 once everything is counted, and every pricing decision should start from that number, not the invoice.

Question 2

What margin do I need to sell online profitably?

Accepted Answer

Before marketing, most successful DTC products carry 60 to 75 percent product margin on landed cost, because advertising commonly consumes 20 to 35 percent of revenue. Marketplace sellers need enough margin to survive 15 percent referral fees plus fulfillment.

Question 3

What is keystone pricing?

Accepted Answer

Doubling your cost to set retail, a 50 percent margin. It is a floor for boutique retail, not a rule: paid-traffic e-commerce usually needs more, and commodity categories often cannot support it.

Landed Cost & Retail Pricing

Getting It to Your Shelf

Selling It

Your Real Margins

Full Pricing Analysis Full Report

Buying or building a product business?