One of the most common mistakes that importers make is not understanding how shipping costs are calculated.
Air Shipping Calculation
Air shipping is charged by:
-
Actual weight (kg)
-
Volumetric weight (length × width × height ÷ factor)
The higher one is used.
Sea Shipping Calculation (CBM)
Sea shipping uses CBM (Cubic Meter).
Formula:
Length × Width × Height (in meters)
Example:
A carton measuring:
-
0.5m × 0.5m × 0.5m
CBM = 0.125 CBM
Most cartons are either in cm or mm.
You would need to convert centimeters (cm) to m or millimeters (mm) to m first. In most cases, they tell you to divide by 1,000,000 or 1000,000,000, as the case may be.
If your carton has cm measurements:
50x50x50
The formula becomes
50x50x50/1,000,000 = 0.125 CBM
If your carton has mm measurements:
500X500X500
The formula becomes
500X500X500/1000,000,000 = 0.125 CBM
I believe it is clearer now.
Other Costs to Consider
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Clearance
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Handling
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Local delivery
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Delays
Knowing your landed cost helps you price correctly and avoid losses.
We have a new product called Balanx. It helps you to track landing costs, figure out your profits and loss, and then gives you recommendations on how to scale.