The factory price on a quote is rarely the number that determines whether a product is profitable. Landed cost — the true cost once a product is in your warehouse — includes freight, duties, insurance, customs clearance and often a handful of fees that only show up after the fact.
Ocean freight rates fluctuate more than most new importers expect, and locking in a single quote without buffer room is a common mistake. Duties depend on accurate tariff classification, which is easy to get wrong if you’re new to a category. Add in demurrage charges for a container that sits at port too long, and margins that looked healthy on paper can disappear.
Price your product against the fully landed cost, not the factory quote, before you commit to a purchase order — it’s the difference between a plan that works and one that only looks like it does.