Importing Goods for Resale? 7 Costs You Must Calculate Before Setting Your Price
Buying products from international suppliers can create opportunities for retailers, ecommerce sellers and small businesses. But the supplier's quoted price is rarely the complete cost.
Before deciding what to charge customers, consider these seven expenses:
- Product costs: The price of the goods and any minimum-order requirements.
- International freight: Shipping by air, sea, road or courier.
- Insurance: Protection against loss or damage during transit.
- Customs duties: Applicable charges based on the goods, their origin and destination.
- VAT and other taxes: Where applicable, including whether amounts are recoverable.
- Handling and delivery: Customs agents, port fees, warehousing and local transport.
- Currency conversion and payment fees: Exchange-rate differences and international transaction costs.
These expenses contribute to your landed cost—the total cost of getting your goods to their intended destination.
Calculating that figure helps you evaluate whether your selling price leaves a worthwhile margin.
A Practical Tool for Importers
International UK Docs offers an Import Landed Cost & Profit Margin Calculator designed to help businesses estimate import costs and review potential profit margins.
Explore the digital calculator:
International UK Docs — Practical Digital Resources for a Global Market.
Always verify applicable customs and tax requirements with official sources.