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      Landed Cost

      Understanding Landed Cost Calculation in SKUPREME

      Understanding Landed Cost Calculation in SKUPREME

      What is Landed Cost?

      Landed cost represents the total expense of getting your product into inventory and ready for sale. It includes not just the cost of purchasing the product from your supplier, but also shipping, customs, duties, taxes, insurance, currency conversion, and other fees associated with moving your inventory from the supplier to your warehouse or fulfillment center.

      How SKUPREME Calculates Landed Cost

      Basic Calculation Components

      In SKUPREME, landed cost calculation incorporates several key elements:

      1. Supplier Cost - The base purchase price paid to your supplier
      2. Shipment Cost - Expenses related to transporting your inventory
      3. Additional Fees - Any customs, duties, taxes, or other charges

      Viewing Landed Cost Information

      You can find landed cost information in the Predictions tab of your SKUPREME dashboard. This provides visibility into your true inventory costs and helps with accurate profit margin calculations.

      Purchase Order Processing

      When processing a purchase order to a warehouse, SKUPREME automatically:

      • Tracks the associated shipment cost
      • Allocates this cost appropriately to your inventory items
      • Updates your landed cost calculations in real-time

      FBA Shipment Cost Allocation

      For Amazon FBA shipments that contain multiple units:

      • The total shipment cost is divided proportionally among all units
      • Each unit bears its fair share of the overall shipping expense
      • This ensures accurate per-unit profitability calculations

      Default Calculation

      If no shipments are recorded in SKUPREME for particular inventory:

      • The system will default to using the supplier cost as the landed cost
      • This provides a baseline calculation until shipping data is available

      Best Practices for Accurate Landed Cost

      To ensure the most accurate landed cost calculations in SKUPREME:

      1. Record All Shipments - Always enter your shipment details in the system
      2. Include All Fees - Make sure customs, duties, and other charges are captured
      3. Verify Allocations - For multi-product shipments, verify cost allocations are appropriate
      4. Regular Auditing - Periodically review your landed costs against actual expenses

      Future Enhancements

      While the detailed breakdown of landed cost calculations is not currently displayed in the interface, this feature has been requested for future platform updates. SKUPREME is continuously improving to provide more granular visibility into your inventory costs.

      Impact on Business Decisions

      Accurate landed cost data helps you:

      • Set profitable pricing strategies
      • Make informed inventory purchasing decisions
      • Compare supplier and logistics options
      • Calculate true ROI for your product catalog

      For additional questions about landed cost calculations, please contact SKUPREME support.