Understanding your landed price
The landed price is the real number to compare. Here is what goes into it and why it beats comparing unit prices.
What landed price means
The landed price is the total cost to get a product to your door, ready to use or sell. It is the only figure that lets you compare a China-sourced option against your current UK supplier fairly.
A low factory unit price means little if freight, duty and fees close the gap — the landed price tells the whole story.
What goes into it
Landed price adds up: the product cost, freight and insurance to the UK, import duty, any clearance and handling fees, and delivery to your address.
Import VAT is charged too, but for a VAT-registered business it is normally reclaimable, so it is a cash-flow item rather than a true cost.
Why VAT is usually reclaimable
If your business is VAT-registered, import VAT can generally be recovered on your VAT return, which is why we quote the landed price clearly and provide a standard UK VAT invoice.
Duty, by contrast, is a genuine cost that you cannot reclaim — so the commodity code that sets your duty rate matters. See our guide on import duty and VAT for the detail.
Compare landed price, not unit price
When you weigh up sourcing options, always compare the landed price against what you pay today. That is where the real saving — your hidden margin — shows up.
A transparent landed price with no hidden fees is the fair basis for a decision; anything less makes the comparison meaningless.
Frequently asked questions
Is VAT part of the landed cost?
It is paid at import, but a VAT-registered business normally reclaims it, so treat it as cash flow rather than a permanent cost. Duty is the part you cannot reclaim.
Why compare landed price instead of unit price?
Because a cheap unit price can be wiped out by freight, duty and fees. Only the landed price shows the true cost to your door.