Lesson 3 of 10
What your goods cost you
Landed cost is what a unit cost to reach the shelf it sold from, in the currency you actually paid in — and it is different in every marketplace.
Referral fee and FBA fee are what Amazon charges for selling a product. Neither has anything to do with what that product cost to make, ship and land before it ever reached an Amazon warehouse — its landed cost. That figure never appears in an Amazon report. It exists on this dashboard only because a seller typed it in, one SKU at a time, in Settings.
Landed cost, and why it is entered per marketplace
Landed cost is three boxes added together: what a unit cost to acquire, freight to get it to a fulfilment centre, and any duty paid crossing a border. All three are entered in the currency the seller actually pays their supplier in — not necessarily USD — and converted the same way every other foreign-currency figure on this dashboard is. They are entered separately for each marketplace a product sells in, because freight into one country’s fulfilment centres is rarely the same number as freight into another’s. A product with no landed cost on record is not treated as free — it is left out of profit rather than costed at zero.
| Marketplace | Units | Revenue | Cost of goods, landed | Landed, per unit |
|---|---|---|---|---|
| Amazon.ca | 4 | $525.56 | $89.96 | $22.49 |
| Amazon.com | 13 | $2,609.25 | $389.82 | $29.99 |
| Amazon.co.uk | 3 | $206.35 | $44.98 | $14.99 |
What is left to subtract
Revenue, minus Amazon’s own fees, minus what the goods themselves cost landed — that is still not the whole picture. One variable cost remains before a unit’s own economics are complete: what it cost to advertise it. That is where lesson 4 picks up.