← Back to glossary Category: Financiar Landed Cost Quick answer: The total real cost of a product up to the warehouse: purchase price + freight + duties + insurance + handling. Key takeawaysSupplier purchase priceInternational and local freightCustoms duties (per HS code) and import VATInsurance, handling, demurrage What landed cost is Landed cost is the real cost of goods until they are available in the warehouse: the supplier price plus freight, customs duties, non-recoverable VAT, insurance, handling and other bringing-in costs. Why it matters to the board Pricing on purchase cost alone silently erodes margin. Landed cost shows the true cost and is the only correct basis for pricing, margin and sourcing decisions. Components Supplier purchase price International and local freight Customs duties (per HS code) and import VAT Insurance, handling, demurrage How Azuvio helps Azuvio consolidates bringing-in costs on each receipt (freight, duties, Incoterm, HS code) to compute the real landed cost per SKU, correctly feeding gross margin and pricing. Frequently askedWhy isn't the purchase price enough?Because freight and duties can add significant percentages. Landed cost is the only cost on which you can build a correct margin.Does landed cost depend on the Incoterm?Yes. The Incoterm decides which costs (freight, insurance, customs) are on you, so it directly influences landed cost. Where Azuvio fitsConectori ERPSoftware OMSSoftware WMS Related termsIncoterms — Standardised international rules (ICC) defining who pays for transport, risk and customs in a commercial transaction.HS Code (Tariff Code) — The international customs classification code for goods, determining duties and import/export restrictions.Gross Margin — The difference between revenue and cost of goods sold, usually expressed as a percentage of revenue.Total Cost of Ownership (TCO) — The sum of all costs of a solution over its full life: acquisition, implementation, operation, maintenance and replacement. Last updated: 2026-07-06