Landed Cost
The total cost of a product inclusive of its purchase price and all expenses incurred to bring it to the buyer's specified destination, including freight, insurance, duties, and taxes.
Full Definition
Landed cost (also called total landed cost) is the comprehensive figure representing everything a buyer pays to acquire goods and have them delivered to a destination—covering the product cost, ocean or air freight, customs duties, insurance, port fees, drayage, and any other import-related charges. It is a critical metric in sourcing decisions and cost comparisons across supply chains. Editors should note that 'landed cost' is two words without a hyphen, though 'landed-cost analysis' is hyphenated as an attributive phrase. It should not be confused with 'total cost of ownership', which also includes post-purchase costs such as maintenance.
Usage
Usage note: Two words, no hyphen in standalone use. Hyphenate as 'landed-cost' when modifying a noun. Distinct from 'total cost of ownership', which extends beyond point of delivery.
In Context
- "When comparing suppliers from different countries, the procurement team always evaluated landed cost rather than unit price alone." — Global sourcing strategy report
- "Use 'landed cost' as two words; hyphenate only in attributive use, as in 'landed-cost calculation'." — Editorial style note