Understanding Product Landed Cost in 2025: What It Is and How It’s Changing

When you’re importing products, the product landed cost is the number that really matters. It’s the total cost of getting your product from the supplier’s door to your customer’s hands—or into Amazon’s fulfillment network.

Landed cost isn’t just the invoice price of your goods. It includes freight, duties, tariffs, insurance, customs clearance, and handling fees. And with the recent tariff hikes and the elimination of the de minimis exemption, landed costs are rising fast—especially for e-commerce sellers.

What Is Product Landed Cost?

In simple terms, landed cost =

Product Cost + Freight + Duties/Tariffs + Customs/Handling Fees + Insurance (if applicable)

It’s the true cost of importing, and it’s what determines your real margins. Many sellers miscalculate by only looking at supplier price + freight, which can create big surprises at checkout or when reconciling profit.

How Landed Costs Are Changing

Recent U.S. trade policy shifts are rewriting the rules:

  • No more small-shipment loophole
    The $800 de minimis exemption ended on August 29, 2025. Every shipment—no matter how small—now faces tariffs and customs paperwork. That means splitting shipments into small parcels no longer avoids duties.
  • Tariff stacking by country of origin
    Baseline tariffs now add 10% across the board, but goods from China can face stacked tariffs of up to 125% or more, depending on category and HTS code. Most other countries fall in the 10–50% range.
  • Added compliance and operational costs
    Beyond the duties themselves, importers now pay more in customs brokerage fees, bonds, and paperwork. That translates into higher operational overhead and longer lead times.

Example Landed Cost Scenarios

See how tariffs and de minimis changes affect your real importing costs.

Scenario A · $500 fast-fashion

Small parcel import (previously duty-free)

Figures are estimates; actual rates vary by HTS code and carrier fees.

Old landed costDe minimis
$500 product$500
$30 freight$30
Total$530

New landed costTariffs apply
$500 product$500
$50 tariff (10%)$50
$30 freight$30
$20 customs & handling$20
Total$600

Scenario B · $1,000 electronics (China)

High-tariff category with stacking

Electronics often face layered tariffs depending on classification.

Old landed costLower duty
$1,000 product$1,000
$60 freight$60
Total$1,060

New landed costStacked tariffs
$1,000 product$1,000
Tariffs (up to 125%)≤ $1,250
$60 freight$60
$80 customs & handling$80
Total$2,300+

How to Calculate Product Landed Cost

Create a free account at TacticalForwarding.com to access our free product landed cost calculator (how-to video below).

What Sellers and Retailers Should Do

  1. Audit your SKUs – Recalculate landed cost for every product with updated tariff schedules.
  2. Adjust pricing & margins – Decide what you can pass on to customers versus absorb.
  3. Update systems – Ensure your ERP and checkout flows calculate the new tariffs correctly, especially for cross-border sales.
  4. Explore new sourcing & fulfillment strategies – Consider U.S. or FTA-exempt sourcing, or use U.S.-based 3PL warehousing like Tactical to minimize customs exposure and speed up delivery.

For sellers preparing for peak season, it’s also critical to review Amazon’s Q4 FBA cutoff dates to avoid additional delays and costs.

How Tactical Can Help

  • Freight forwarding & customs clearance: Our in-house team manages tariff classification, bonds, and clearance so you don’t get stuck with surprises.
  • Warehousing in CA, NJ, and NY: Store bulk imports stateside, then ship on demand for faster, tariff-free fulfillment.
  • SplitSmart™ distribution: Avoid Amazon placement fees and keep your inventory moving to multiple FCs quickly.
  • One partner, all logistics: From overseas factory pickup to Amazon-ready prep, we handle it end-to-end.

Product Landed Cost: The Bottom Line

The era of duty-free, small-parcel importing is over. Tariffs and compliance costs are now part of the landed cost equation for every shipment. Sellers who ignore these changes risk margin erosion, compliance issues, and pricing shocks.

But with the right logistics partner, you can adapt. Tactical helps you calculate, control, and optimize your landed costs—so you can stay competitive in the new trade environment.

👉 Book a call with our team to audit your landed costs and plan smarter for Q4 and beyond.



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