A3E Ecosystem / Free tools / Landed cost
A supplier invoice says a mug costs 4.20. Add freight, duty and the broker's fee and it is closer to 5. Put the invoice in below and see the true cost per item, so your margins and your Shopify cost per item are right.
A3E Receive: Invoice to Stock reads the supplier's PDF, phone photo or spreadsheet, checks every line adds up, matches each line to your Shopify products and, after you approve, adds the stock and sets cost per item including freight and duty.
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Landed cost is what an item cost you by the time it is on your shelf: the supplier's price plus its share of freight, duty, customs and broker fees. If you price from the invoice price alone, every margin report you run is too high.
Spreading by line value gives expensive lines a bigger share, which suits duty (charged on value) and most mixed shipments. Spreading by quantity gives every unit the same share, which suits shipments of similar-sized items where freight is really about volume.
Shopify keeps a cost per item on each variant and uses it for profit reports. When new stock arrives at a different landed cost, the honest number is the weighted average of what you already had and what just arrived: (old units × old cost + new units × new landed cost) ÷ total units.
Leave out GST, HST, VAT or other tax you recover from the government. It is not a cost of the item. Duty and import tax you can't recover belong in landed cost.