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Cost of Importing from the EU: What It Consists Of
Опубліковано:
The price in a producer's price list is only part of what you will pay for an imported product. If you don't calculate everything before ordering, your margin gets eaten at the warehouse. Here is what the cost consists of and how to calculate it.
The formula
Landed cost = purchase + logistics + customs clearance + duties and taxes (excise for alcohol) + additional costs
Purchase is the producer's price for the batch. Additional costs include, for example, labelling, storage and consolidation.
What it consists of
| Component | What is included | What it depends on |
|---|---|---|
| Purchase | Producer's price, delivery terms | Volume, payment terms |
| Logistics | Transport from the EU to Ukraine, consolidation | Number of pallets, route |
| Customs clearance | Broker services, documents | Product category |
| Duties and taxes | Duty, VAT, excise for alcohol | Product code, rates |
| Additional costs | Labelling, including excise stamp application for alcohol, storage | Product type, timing |
How to build in your margin
Margin, % = (selling price − landed cost) / selling price × 100
First calculate the full cost of one unit, and only then set the price for the shelf or for distribution. Exchange rates and logistics costs change, so there is no fixed cost, but before the start you can see all its components.
Common mistakes
- Counting only purchase and logistics and forgetting taxes and additional costs.
- Not allowing a reserve for exchange-rate changes.
- Comparing producers by list price instead of full landed cost.
How we help
We calculate cost per SKU for €50 per SKU. You see all components before the start and can compare producers on equal terms.
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