💰 Product Costing

Import vs Domestic Manufacturing Calculator

Use our import vs domestic manufacturing calculator to compare total cost of China-sourced vs domestically manufactured products. Factor in landed cost, lead time risk, and intellectual property considerations.

Updated: 2026-04-13
Planning Reference
Inputs Last Reviewed April 2026
Reference Basis

Built from current calculator assumptions plus typical import cost benchmarks used by China sourcing teams.

Planning Note

Use this to pressure-test margin and landed cost. Final profitability still depends on your freight quote, duty classification, and downstream selling costs.

Primary opportunity

import vs domestic manufacturing calculator
Low SERP difficulty

Calculator
Your all-in cost per unit including duties, freight, and all fees.
Amazon: 8–17%. eBay: 12–14%. Shopify: 0–3% + payment fees.

Import vs. Domestic Sourcing Decisions

Sourcing domestically usually carries a higher unit cost but offers immense advantages in cash flow, lead times, and agility.

When comparing a $10 China landed cost with a $13 Domestic cost, factor in the cost of capital. A China import might require paying a 30% deposit 90 days before the goods arrive in your warehouse. The domestic supplier might offer Net-30 payment terms, meaning you sell the goods before you even pay for them.

Tips for China Importers

  1. 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.
  2. 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.
  3. 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%.
  4. 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.
  5. 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.