How do I estimate total landed cost (product + freight + duty)?
Short Answer: Stack Product + Agent + Freight + Duty + Fees, Then Add 10-15% Buffer
Total landed cost is the full price of goods delivered to your door: product value, agent commission, international freight, import duty and the many small fees (MPF, HMF, broker, last-mile). In 2026 the biggest new variable is US tariff stacking, where typical consumer goods now face about 35% effective duty after the de-minimis removal, so always model duty before you price.
The Landed-Cost Stack
Build the estimate in order; each layer adds on the previous. Skipping duty or fees is the most common reason a 'cheap' China order loses money at resale.
Product value
Factory price in USD.
Agent commission
3-10% on goods.
Freight to port
FOB to your destination.
Import duty & tariffs
~35% effective US typical in 2026.
Fees & last-mile
MPF, HMF, broker, drayage.
The 2026 Duty Reality (US)
After the SCOTUS IEEPA ruling (Feb 2026) and the removal of the $800 de-minimis exemption, typical consumer goods face about 35% effective duty from stacked Section 301 (25% on Lists 1-3, 7.5% on 4A) plus Section 232 metals and new surcharges. Apparel runs 40-60%.
Worked Example: $10,000 Order to the US
A worked all-in for a $10,000 factory order to the US West Coast, modelled at 2026 rates.
| Layer | Amount | Basis |
|---|---|---|
| Product | $10,000 | Factory price |
| Agent (5%) | $500 | On goods |
| Ocean freight (40ft share) | $900 | Part of container |
| Duty (~35%) | $3,850 | On goods value |
| MPF 0.3464% | $35 | On value |
| HMF 0.125% | $13 | On value |
| Broker + drayage | $250 | Fixed |
| Landed total | $15,548 | All-in |
Model duty on goods value, not on the agent or freight, unless your tariff base says otherwise.
The Buffer You Must Add
Freight and tariff are volatile in 2026 (rates surged +239% from March on tariff front-loading). Add 10-15% buffer so a spike does not erase margin.
- Don't trust last year's duty Section 122 surcharge and 301 reviews change bases quarterly.
- Model worst-case lane East Coast adds transit and surcharges vs West Coast.
Case: The 'Profitable' Order That Wasn't
Priced on product + freight only, ignoring the new ~35% duty and brokerage. At resale the order lost $1,100 after the first formal entry post de-minimis. Re-modelled with duty and buffer, the next order was priced correctly.
How RND SOURCING Models Landed Cost
Our desk builds a landed-cost sheet for every quote: product, commission, freight at the carrier rate, the current duty for your HS code, and all US fees, with a 10-15% buffer for 2026 volatility. We are not a customs broker, so for binding tariff classification we point you to a licensed broker, but the estimate is complete enough to price with confidence.
Get a landed-cost estimateRelated Questions
- What are common ocean freight surcharges?
- What customs duties and tariffs apply in 2026?
- What documents do I need to import from China?
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