Landed cost

Know what every unit really cost

Freight, duty, and fees are part of what you paid. Posto spreads them across each purchase order to give a landed cost per unit, so your margins are real, not just the price on the invoice.

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Why the invoice price isn't your cost

A mug that costs $4 on the invoice might cost $5 once freight, duty, and a broker fee are shared out. Sell it for $12 and the margin you think is 67% is really about 58%.

Shopify keeps one cost per item for each product, and its own guide says that cost stays fixed when you receive stock. So unless someone updates it by hand, your margin reports drift further from the truth with every order.

The mug example is illustrative. Our landed cost guide walks through it step by step.

What goes into landed cost

Add to each order
  • Freight
  • Import duty
  • Broker and other fees
Add them when you know them, even after the goods arrive. Bills for freight and duty often come later.
Choose how to split them
  • By value
  • By units
By value suits costs that grow with what the goods are worth, like duty. By units suits freight when your products are similar in size.

How it works in Posto

1

Add the extra costs

On any purchase order, add freight, duty, and fees, and choose whether to split them by value or by units.

2

Receive the stock

Receive deliveries as they come in. Once the order is finished, costs are split over what actually arrived, so the units you got don't carry the cost of ones that never came.

3

Keep Shopify current

If you turn it on, Posto updates Shopify's cost per item when stock arrives, to the latest landed cost or an average with the stock you already have. It's off until you choose.

Split by value or by units, your choice.Costs can be added after the goods arrive.Updating Shopify's cost per item is optional.

Start with your next order

You don't need to rework past orders. Add freight and duty to the next purchase order you send, and you'll have a true cost per unit by the time it arrives.

See your real marginsLanded cost comes with every Posto plan, including the free one. Try it on your next delivery.Start 30 days free

What you get

Add costs whenever they landFreight and duty bills often show up after the goods do. Add them whenever they arrive, and the cost per unit catches up.
Partial deliveries handledOnce an order is finished, costs are split over what actually arrived, not what you ordered.
Split it your waySpread extra costs by value or by units, whichever suits what you buy.
Shopify kept currentOptionally update cost per item when stock arrives, to the latest cost or an average.
Any Shopify planWorks on every Shopify plan, Basic included. No Plus or POS Pro needed.

Questions about landed cost

Will Posto change my cost per item in Shopify?+

Only if you turn it on in Settings. Then, when you receive stock, Posto updates the cost per item of the products you received, to the latest landed cost or a weighted average. It never writes a cost from a line with no cost, or from an order in another currency. It's off by default.

Should I split costs by value or by units?+

By value suits duty and other costs charged as a share of what the goods are worth. By units suits freight when your products are a similar size. Pick one and use it consistently.

What if the freight bill comes after the goods?+

That's common. Add the costs to the order whenever they arrive, and Posto's landed cost per unit updates. If you've turned on cost updates, Shopify's cost per item is set when stock arrives, so fees added later won't change it. Posto tells you when that happens.

Do I need landed cost if I don't import?+

If you pay for shipping on supplier orders, yes. Even domestic freight changes what each unit cost, and it adds up across a year of orders.

Stop guessing your next reorder

Install Posto, bring your suppliers and costs over, and send your first purchase order. 30 days free, everything unlocked, no payment details.

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