Landed cost: Definition, Formula & Why It Matters
Also called: Total cost, All-in cost
Landed cost is the complete cost of getting an item ready to sell: the purchase price plus inbound shipping, repairs or setup, import duties, and any handling. It is the true cost basis for pricing, and it is almost always higher than the sticker price you paid.
Landed cost formula
Example
A $200 pedal with $15 inbound shipping and $20 in new parts has a landed cost of $235.
Why it matters for Reverb sellers
Sellers who price off the purchase price alone routinely discover their real margins are 10-20% thinner than expected. Landed cost is the honest number to build prices and margins on.
How Verbstack helps
Verbstack lets you capture all-in cost per item so your margins reflect what the gear truly cost to acquire.
Track this on every order, automatically.
- ✓ Real fees, margins, and profit on every Reverb sale
- ✓ COGS and inventory tracked for you, no spreadsheet
- ✓ Full history and a live monthly P&L
Free forever to get started. No credit card required.
See this number on every order.
Connect your Reverb shop and Verbstack tracks your fees, margins, and profit automatically.
Get started freeFree forever to get started. No credit card required.