Economic Order Quantity Calculator
Use our economic order quantity calculator to calculate the optimal order quantity for China imports that minimizes total inventory and ordering costs. Based on the EOQ formula.
Built from current calculator assumptions plus typical import cost benchmarks used by China sourcing teams.
Use this to pressure-test margin and landed cost. Final profitability still depends on your freight quote, duty classification, and downstream selling costs.
economic order quantity calculator
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EOQ: Finding the Sweet Spot
Ordering large batches minimizes freight costs and unit price, but maximizes storage costs and cash constraints. The EOQ formula mathematically determines the intersection where your total costs are lowest.
Particularly with China imports, ordering one FCL (Full Container Load) is often used as a default EOQ because the reduction in freight costs per unit (compared to LCL) heavily offsets the increased holding costs.
Tips for China Importers
- Never compare suppliers by FOB price alone. A supplier $0.50 cheaper on FOB can easily be more expensive once freight, duty, and compliance differences are factored in. Always compare landed cost.
- Include platform fees in your landed cost model. Amazon FBA referral + fulfillment fees total 30–40% of your selling price. If that's your channel, it must be in your cost calculation from day one.
- Add a 15% cost contingency for your first import. First-time importers consistently underestimate costs — unexpected charges like detention fees, inspection costs, or currency moves routinely add 10–20%.
- Calculate break-even units before ordering. Know exactly how many units you must sell to cover your landed cost and fixed overheads. If break-even is more than 60% of your order, the risk is too high.
- Recalculate on every reorder. Freight rates, duty rates, and supplier prices all change. A cost model from 6 months ago can be meaningfully wrong. Always recalculate before committing to a new order.