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Procurement · Definition

Landed Cost

The total cost of a product once it arrives, including freight, duties and fees.

Landed cost is the full cost to get an item to your door — the purchase price plus freight, insurance, customs duties, taxes and handling. It is the true cost basis for valuation and margin.

Allocating these extra costs back to each item (by value, weight, volume or quantity) is what makes COGS and profitability accurate, especially for imported goods.

See it in AWRA OpsHub

Landed Costs & Finance

Related terms

Cost of Goods Sold

COGS

The direct cost of the products a business sold in a period.

Goods Received Note

GRN

A record confirming what was actually received against a purchase order.

Gross Margin

The percentage of revenue left after the cost of goods sold.

More in Procurement

Approval Workflow Approved Vendor List (AVL) Bid Evaluation Blanket Purchase Order Category Management Conflict of Interest (CoI) Contract Lifecycle Management (CLM) Cost Avoidance

Landed Cost is not just a definition here

Procurement runs on this vocabulary every day in AWRA OpsHub — 40 of our 257 glossary terms describe things the platform actually does.

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