Ecommerce & Marketplaces
Landed cost per unit
Every per-unit cost, with the fixed shipping spread over the lot.
The Formula
Cost/unit = Unit cost + Inbound/units + Retail x Overhead + Retail x Fee
Every per-unit cost, with the fixed shipping spread over the lot.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| W | Wholesale unit cost | currency | Trade price per unit. |
| I | Inbound shipping | currency | Total cost to receive the lot. |
| n | Units purchased | count | Size of the order. |
| R | Retail price | currency | Price the unit sells for. |
| o | Overhead rate | rate | Storage and handling share of retail. |
| f | Fee rate | rate | Marketplace or payment share of retail. |
What Each Symbol Means
Wcurrency
Wholesale unit cost
Trade price per unit.
Icurrency
Inbound shipping
Total cost to receive the lot.
ncount
Units purchased
Size of the order.
Rcurrency
Retail price
Price the unit sells for.
orate
Overhead rate
Storage and handling share of retail.
frate
Fee rate
Marketplace or payment share of retail.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate wholesale profit page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Wholesale Profit, filed under Business. Every number the guide produces comes from substituting into this one line.