Understand landed cost and the price ratio

Work out the cost of getting a product to the buyer

1. Lesson introduction

What does it really cost to deliver one item to a US buyer?

Use a real CJ quote to calculate landed cost, then compare it with the selling price.

Open product details and click “Use for this lesson”.

Keep one product selected to avoid mixing costs from different sources.

Incomplete or expired quotes are for practice only.

Check specifications, stock and the shipping warehouse in the CJ source section.

Check what the buyer will receive to reduce wrong shipments and stock issues.

Look at the unit price and per-unit shipping cost in the CJ source section.

Their sum is the basic cost. Do not leave shipping out of pricing.

Current quote: Unit price {{cj.unit}}, shipping per unit {{cj.shipping}}. Which is the basic landed cost?

Explanation

Their sum is the basic cost. Do not leave shipping out of pricing.

Open the Cost calculator. Enter a selling price and per-unit costs in dollars.

Include duties and fees to avoid selling below cost.

Look at the ratio and its conclusion in the calculation result.

The gap between price and cost determines what you can spend on finding buyers.

At 2.5, you can research advertising. At 1.5, you can research organic traffic. Below 1.5 is not recommended.

Your ratio is {{calculation.ratio}}. How is it classified by the current rules?

Explanation

The gap between price and cost determines what you can spend on finding buyers.

Click “Save this lesson's cost record”.

Keep the cost details to help adjust prices and advertising budgets.