Landed cost = everything you pay to get your inventory from the Alibaba supplier's factory to your Amazon FBA warehouse, divided by the number of units. It's the number you need to plug into your real margin calculation — not the $3 your supplier quoted you on Alibaba.
For a typical FBA private label launch with 500 units sourced from China at $3 FOB, 0.5 CBM sea LCL (charged at 1 CBM minimum):
Goods (FOB): 500 × $3 = $1,500
Sea LCL freight (1 CBM min × $150): $150
Section 301 (25%) + Section 122 (10%) + MFN (5%) on $1,500: $600
MPF (min): $33.58
HMF (0.125% × $1,500): $1.88
Customs broker: $200
Last-mile to FBA + prep: $200
Total landed: ~$2,685
Per unit: $5.37 — 79% above your FOB quote.
This is why the FBA private-label profit math has tightened sharply since 2025. Sellers who only multiply Alibaba quote × 3 for retail price are getting crushed; serious sellers calculate landed cost first and aim for 3-4× landed (not 3-4× FOB).
Sea LCL (Less-than-Container Load) — charged per CBM (cubic metre) with a typical 1 CBM minimum. 2026 China → US West Coast door-to-door: $150-$220/CBM. Transit 30-45 days. Sweet spot: 1-15 CBM shipments. Cheapest per unit but slowest.
Sea FCL (Full Container Load) — flat per container. 20ft = ~28 CBM usable. 40ft = ~58 CBM usable. 2026 rates: 20ft $2,500-$4,500, 40ft $3,500-$5,500 China → US (port to port, add ~$300-800 drayage). Sweet spot: 15+ CBM.
Air freight — per kg, 5-10 days. 2026 rates: $4-$8/kg China → US. Sweet spot: 150-500 kg if speed matters more than cost.
Express (DHL / UPS / FedEx) — per kg, 3-7 days, door-to-door. 2026 rates: $6-$12/kg. Sweet spot: under 100 kg launches when you need to test fast.
Most freight forwarders use the higher of actual weight or volumetric weight (CBM × density factor, usually 167 or 200 kg/CBM for air). Your forwarder will quote both and charge the larger.
Included: FOB goods cost, freight (LCL by CBM or FCL flat or air/express by kg), Section 301 China tariff, Section 122 baseline tariff, MFN base duty, MPF (0.3464%, min $33.58, max $651.50), HMF (0.125% on ocean only), customs broker fee, last-mile/FBA prep flat.
Not included: Anti-dumping/countervailing duties (AD/CVD — common on furniture, steel, solar; check Commerce Department), Section 232 metal duties, FDA/CPSC/USDA partner-government-agency fees, supplier sample fees, mould tooling fees (private label), Alibaba Trade Assurance fee, quality inspection (Pre-Shipment Inspection $300-500), product photography, Amazon FBA inbound shipping if you use Amazon Partnered Carrier (free or paid via UPS small parcel).
For an exact breakdown with HTS code lookup and per-line source citations, use our US China Import Duty Calculator.
1. Order to fill a CBM, not a CBM-and-a-bit. LCL minimum is typically 1 CBM. If your order is 0.8 CBM, you pay for 1 CBM anyway — order more units to use that paid-for space.
2. Consolidate suppliers via a freight forwarder. If you have two suppliers each shipping 0.5 CBM, ask your forwarder to consolidate into one 1 CBM shipment. Saves freight + one set of fixed customs/broker fees.
3. Use 1688.com via a sourcing agent for round 2 of orders. Once you've validated a product on Alibaba.com, the same factories often have 20-40% cheaper prices on 1688.com (the Chinese-domestic Alibaba). Requires a sourcing agent or freight forwarder who handles Chinese-side payment.
4. Pick the right HTSUS code with your broker. Categories can shift Section 301 from 25% to 7.5% with the right classification. Worth 30 min of broker time before placing your first order.
5. Negotiate supplier-paid freight DDP carefully. Some suppliers offer "DDP" (Delivered Duty Paid) at ~$1-$1.50/unit on top of FOB. Often this means the supplier is using shady customs methods that put you at risk for fraud penalties. Pay the duty yourself through a licensed broker.