Library · Stock / inventory · How to run this
Build landed cost before you set CAC
Factory invoice is not COGS. Landed cost is factory plus inbound freight, duties, and 3PL pick/pack to put one unit in a shippable state. Bid caps that skip inbound invent margin.
Pair: Landed COGS into contribution on Stock. Who pays duties at delivery: DDP vs DDU. Billable parcel weight: dimensional weight.
How to read it
Type the four lines for this SKU. Read landed COGS. Paste that number into max CAC from settled contribution. When the ocean lane or 3PL rate changes, type again. Days-of-cover cut for the same SKU sits on cut ads before you stock out.
What not to do
Do not bid on factory cost. Do not average SKUs so a heavy-freight hero looks cheap. Do not leave last quarter’s freight in the model.
Where returns and chargebacks land after the sale: chargeback / return vs COGS.
Procedure
- Put factory, inbound, duties, and 3PL.
- Read landed COGS.
- Paste that number into max CAC.
- Update it when freight changes.
Failure modes
- Using factory cost in max CAC.
- Forgetting inbound on ocean freight.
- Ignoring 3PL pick fees.
Worked example
None on this page yet. When one lands it will be a real case: what broke, the number, and what changed. Not a composite.
Glossary
- Landed
- All cash to put one unit in a shippable state. Factory invoice is one line, not the number.
Work with us — We run this job on your accounts. Services
FAQ
- Can I use the factory invoice in max CAC?
- No. Factory is one line. Inbound, duties, and 3PL still leave the bank.
- Is outbound shipping part of landed COGS?
- Usually a period expense, not unit COGS. Type 3PL pick/pack that capitalizes into the unit. Do not stuff media into COGS.
- Freight changed this quarter. Reuse last number?
- No. Type the new inbound. Stale landed cost is a fake bid.