Illustrative situation
A brand pays the factory for 500 hoodies at a unit price it likes, then receives invoices from the forwarder, the broker and a trucking company. Its margin looks far smaller than the original spreadsheet predicted.
Main answer
Landed cost is everything you pay to get a garment into your warehouse: product cost plus freight, insurance, duty, customs fees, broker and delivery charges, divided by the number of sellable units. Calculate it before you set a retail price, and update it each time a rate or a quote changes.
The formula
Add the product cost, international freight, insurance, import duty, customs processing and port fees, broker charges, local delivery and any inspection or testing fees. Divide the total by sellable pieces, not pieces ordered, so that rejects and samples are covered. Keep a line for currency movement and a small contingency.
Where duty comes from
Duty depends on the HTS classification, the customs value and the origin. CBP’s guide for importers explains that duty is generally calculated on the value of the goods and that other fees may apply. Ask your broker for a written estimate for each style, and check whether any additional tariffs apply to the origin on the date of entry.
Hidden costs
Common surprises include terminal handling, storage after arrival, a bond, an examination, extra trucking and the cost of relabelling. Add the cost of packaging and labels if they are not in the factory price. For a small order, fixed charges can add a large amount per piece.
A simple worked structure
Write the sheet as columns: factory cost, freight per carton, insurance, duty, fees, broker, delivery, then total and cost per sellable piece. Fill it with quotes first and real invoices later, and keep both versions so you can see how far the estimate was off.
Related reading
See the womens short fit sports hoodie page for the products behind this topic, and read clothing pricing next. Both are general guides, not a quotation.
Use it for decisions
Compare suppliers on landed cost, not price. Test how a change in freight rate or duty alters your margin, and set a minimum order that keeps fixed charges reasonable. Keep the sheet and refresh it with real invoices after each shipment.
Fact, recommendation, uncertainty
- Established fact
- CBP’s importer guide explains that duties are generally based on classification, value and origin, and that other fees and requirements can apply to an entry.
- Recommendation
- Build a line-by-line landed cost sheet per style, divide by sellable pieces and update it with real invoices after each shipment.
- Uncertainty
- Duty rates, fees and freight prices change often, so the sheet is only as current as its inputs.
Sources and further reading
Sources checked on 24 October 2026. Standards bodies sell the full texts; we cite what their public pages state. General information, not legal or technical certification advice.
More perspectives from the team
Three further views on the same question, each by function. They add conditions and limits to the main answer; they are editorial notes, not customer reviews.
Sino Finetex Editorial Team Sourcing
Ask suppliers to quote carton size and weight so freight can be estimated accurately and early. Limit: a rough carton size can hide a much larger freight bill. Ask for freight estimates by carton.
Sino Finetex Editorial Team Product selection
Test several price points and sizes to see how fixed charges affect small styles. Limit: a cheap style with high shipping cost per piece can have worse margin than a pricier one.
Sino Finetex Editorial Team Quality & care
Include cost for inspection and for the defect rate you expect, then compare it with returns. Limit: the lowest factory price may carry more reworking and lower sellable output. Count rejects.
Related products
- M8310 Women’s Short Fit Sports Hoodie
Sino Finetex product page
- M8308 Vintage Washed Heavyweight Fleece Hoodie Manufacturer
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- Products
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