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How to Calculate the Actual Cost of a 1688 Order Before Shipping It to Latin America

El actual cost of an order of 1,688 It's not just the price listed on the supplier's website.

For an importer in Latin America, the actual cost may include the price of the product, domestic transportation in China, purchasing services, inspection, warehouse handling, repackaging, international transportation, insurance, tariffs, taxes, and expenses at the destination.

This difference is important because a product that costs $10 on 1688 may end up costing $13, $15, or even more per unit once all purchasing, fulfillment, logistics, and import costs are factored in.

For this reason, before comparing suppliers or deciding whether a product is profitable, it is advisable to calculate the total import cost and not simply compare the unit price published in 1688.

In this guide, we explain how to calculate the actual cost of a 1688 order before shipping it from China to Latin America.

What is the actual cost of a 1688 order?

The actual cost represents the total amount required to purchase, prepare, transport, and import the merchandise.

A simplified formula would be:

Actual import cost = Products + Domestic shipping in China + Purchasing service + Inspection + Warehousing + Repackaging + International shipping + Insurance + Tariffs + Taxes + Destination charges

Then we can calculate:

Actual cost per unit = Total import cost ÷ Number of saleable units

The word for sale It's important.

If you purchase 1,000 units but 30 arrive damaged or defective, the actual cost should be calculated based on the 970 units you can actually sell, rather than just the 1,000 units originally purchased.

1. Start with the actual cost of the product in 1688

The first component is the supplier's price.

Let's say you want to buy 500 units of a product at RMB 80 per unit.

The initial cost would be:

500 × RMB 80 = RMB 40,000

But the calculation shouldn't end here.

Check to see if the price of 1,688 actually corresponds to your quantity

Many 1688 suppliers use tiered pricing based on the quantity purchased.

For example:

Therefore, you must confirm the price based on the actual quantity of your order.

It's also a good idea to ask whether the quote includes:

These factors can significantly affect the final purchase price.

2. Includes domestic transportation within China

Products purchased on 1688 typically must be shipped from the supplier to a warehouse, consolidation center, inspection site, or freight forwarder within China.

This results in another expense:

Domestic Transportation in China

For example, imagine that you purchase products from three suppliers:

Total:

$270

This amount must be added to the cost of the order.

Domestic shipping can have a particularly significant impact when purchasing heavy or bulky items, such as:

A supplier may offer a slightly lower price, but be located much farther from your warehouse in China.

In that case, the savings on the product's price could be offset by higher domestic shipping costs.

3. Add the cost of the purchasing or sourcing service

Many international buyers work with a purchasing agent or a sourcing company because communicating with Chinese suppliers, making domestic payments, tracking orders, and coordinating with multiple factories can be complicated when doing so from abroad.

For this reason, the cost of the purchasing service must also be included in the calculation.

Let's suppose:

Value of the products: USD 20,000

If the purchase service costs 5 %, the calculation would be:

USD 20,000 × 5 % = USD 1,000

The principle is simple:

Don't calculate profitability based solely on the supplier's invoice.

It includes all the services needed to complete the purchase successfully.

4. Includes the cost of the product inspection

Inspección de calidad de cajas y productos en un almacén antes de enviar mercancías compradas en China.
Quality inspection of boxes and products in a warehouse before shipping goods purchased in China.

Inspection is another cost that some importers forget to include in their initial calculations.

However, identifying a problem before international shipment can be considerably less expensive than discovering it after the products have arrived in Mexico, Colombia, Chile, Peru, Brazil, or another destination market.

An inspection may include:

Let's assume that the inspection costs:

$300

This $300 is part of the actual cost of the order.

The inspection may also affect the cost per unit sold

Imagine you've bought 1,000 units.

During the inspection, the following were detected:

The supplier repairs or replaces them before shipping.

Without a prior inspection, those 30 units could have reached their destination country and become unsellable inventory.

For this reason, quality control should not be viewed solely as an additional expense.

It is also a tool for managing the financial risk associated with the order.

5. Calculate warehouse and handling costs

When you purchase products from multiple suppliers on 1688, the goods usually arrive at the warehouse on different dates.

Recepción, inspección y consolidación de productos de varios proveedores de 1688 en un almacén en China antes del envío internacional.
Receiving, inspecting, and consolidating products from various 1688 suppliers at a warehouse in China prior to international shipment.

The warehouse in China may need to perform tasks such as:

These operations incur warehousing and handling costs.

For example:

Warehousing and Handling: USD 250

This amount must be included before calculating the actual cost per unit.

6. Don't overlook the cost of repackaging

The packaging used by the supplier is not always suitable for international shipping.

Some products may require:

Let's assume that repackaging costs:

$200

This expense increases the initial cost, but proper packaging can also reduce the risk of damage during shipping.

In addition, optimizing packaging can reduce the total volume of the shipment.

And reducing volume can directly lower the cost of international shipping.

7. Calculate the final weight and CBM after consolidation

Proceso de consolidación, pesaje, medición y cálculo de CBM de pedidos de 1688 antes del envío internacional.
Process for consolidating, weighing, measuring, and calculating the CBM of orders from 1688 prior to international shipment.

This is one of the most important steps.

Don't rely solely on the dimensions initially provided by each 1688 supplier.

Once all products have arrived at the warehouse and consolidation or repackaging is complete, request the final data:

The basic formula for calculating volume is:

CBM = Length (m) × Width (m) × Height (m) × Number of boxes

For example:

100 boxes with the following dimensions:

0.60 m × 0.40 m × 0.50 m

The total volume would be:

0.60 × 0.40 × 0.50 × 100 = 12 CBM

This information is essential for requesting a more accurate quote for international shipping.

8. Understand the difference between actual weight and volumetric weight

Cálculo del peso volumétrico de una caja para estimar el costo del transporte aéreo internacional desde China.
Calculating the volumetric weight of a box to estimate the cost of international air shipping from China.

In air transport and express courier services, physical weight is not the only factor that can determine the price.

Shipping companies can compare the actual weight with the volumetric weight and apply the corresponding billable weight according to their rules.

For example, a formula used in certain express services is:

Length × Width × Height in centimeters ÷ 5,000

However, the volumetric factor may vary depending on the carrier and the type of service.

For this reason, you should always verify the formula used in the actual quote.

This is especially important for products that are lightweight but bulky, such as:

A shipment that physically weighs only 100 kg may take up enough space to result in a significantly higher billable weight.

Therefore:

A low physical weight does not automatically mean low shipping costs.

9. Calculate international shipping costs

Carga de cajas y palés en un contenedor para transporte marítimo internacional desde China.
Loading boxes and pallets into a container for international ocean freight from China.

International transportation typically accounts for a significant portion of the total cost of importing.

Depending on the product, volume, destination, and delivery requirements, the importer may consider:

LCL Shipping

Mercancías paletizadas en un almacén de consolidación para transporte marítimo LCL desde China.
Palletized goods in a consolidation warehouse for LCL ocean freight from China.

LCL stands for Less than Container Load or a shipment smaller than a full container load.

Your cargo shares space inside the container with cargo belonging to other customers.

This may be a good option when the volume of your order doesn't warrant chartering a full container.

In LCL ocean freight, CBM is an important factor in calculating the cost. According to the Maersk's Explanation of LCL Shipping, multiple shippers can share space in the same container and pay for the space they use, measured in cubic meters (CBM).

However, a quote may also include minimum charges, weight or volume restrictions, origin charges, documentation fees, handling fees, and destination charges.

FCL Shipping

FCL stands for Full Container Load or a full container.

In this case, the importer charters an entire container instead of sharing space with other shipments.

For larger shipments, it is advisable to compare LCL and FCL quotes rather than automatically assuming that LCL will be cheaper.

When the volume begins to approach the efficient utilization of a container, FCL can offer a more competitive logistics cost per unit in certain cases.

10. Add shipping insurance

Cargo insurance may represent a relatively small portion of the total value of the shipment, but it should be included in the cost model.

For example:

Security deposit: $100

Terms and coverage may vary.

Before hiring him, it's a good idea to check:

You should not assume that a shipping quote automatically includes comprehensive cargo insurance.

11. Calculate import duties and taxes separately

This part of the calculation depends directly on the destination country.

Latin America does not constitute a single customs territory.

Mexico, Colombia, Chile, Peru, Brazil, Argentina, and other countries have different:

For this reason, the HS code or tariff classification of the product is very important.

Before placing a large order, it's a good idea to confirm:

Product → HS Code → Customs Value → Tariff → Import Taxes → Other Applicable Charges

It is not recommended to use an arbitrary percentage, such as “20 % for customs.”.

This can result in an inaccurate estimate of the total cost.

Customs charges must be verified based on the country of destination, the product classification, the declared customs value, the origin of the goods, and any trade agreements or preferential tariff treatment that may apply.

12. Includes expenses at the destination

International shipping is not always the final logistics cost.

Depending on the Incoterm and the transportation agreement, the importer may still have to pay:

For example, if a quote states:

Ocean freight: USD 3,800

This does not necessarily mean:

Total logistics cost = USD 3,800

You should always ask the freight forwarder which items are included and which are excluded from the quote.

13. Complete Example: How to Calculate the Actual Cost of an Order from 1688

Let's look at a simplified example.

A Latin American importer purchases 200 units in China.

Costs before duties and taxes

Products:

USD 20,000

Purchasing or Sourcing Services:

$1,000

Domestic transportation in China:

$400

Product inspection:

$300

Warehousing and Handling:

$250

Packaging adjustments:

$200

International transportation:

$4,500

Cargo insurance:

$100

Total:

$26,750

Now we divide the total by 200 units:

USD 26,750 ÷ 200 = USD 133.75 per unit

The supplier's original price was:

$100 per unit

However, the estimated cost before duties, taxes, and certain destination charges has already risen to:

$133.75 per unit

The difference is:

$33.75 per unit

In other words:

33.75 % above the product's original price

This example shows why comparing products based solely on the price listed on 1688 can be misleading.

14. Why the cheapest supplier on 1688 doesn't always have the lowest final cost

Let's consider two suppliers who sell a similar product.

Supplier A

Product price:

$18 per unit

But it does have:

Supplier B

Product price:

$20 per unit

But it offers:

Supplier A seems cheaper when only the factory price is compared.

However, after taking into account transportation, defects, packaging, and handling, Supplier B could end up with a lower final cost per unit sold.

For this reason, the comparison of suppliers should be based on:

Final cost per saleable unit

and not just in:

Supplier's unit price

15. Break down the calculation into three steps before placing the order

A practical way to control costs is to break down the calculation into three stages.

Level 1: Purchase Cost

Includes:

Product + Domestic Shipping + Shopping Service

This level indicates how much it costs to purchase the merchandise in China.

Level 2: Cost of merchandise ready to ship from China

Add:

Inspection + Warehousing + Repackaging + Consolidation

This step allows you to see how much the order has cost once it is ready for international shipping.

Level 3: Estimated total import cost

Add:

International Shipping + Insurance + Duties + Taxes + Destination Fees

This calculation provides a much more comprehensive estimate of the cost of transporting the goods to the destination market.

In addition, breaking down costs into three categories makes it easier to identify where unexpected expenses arise.

16. Consider three scenarios instead of just one

Shipping, exchange rates, storage, customs fees, and other costs may change between the time the quote is provided and the actual shipment.

For this reason, it is advisable to prepare three scenarios.

Favorable scenario

You can use:

Expected scenario

Use the most realistic estimates available for:

High-Cost Scenario

Add reasonable margins to account for possible variations related to:

This analysis makes it possible to determine whether the product remains commercially viable even when the final costs are slightly higher than expected.

17. Information Required Before Requesting a Shipping Quote

Before requesting a quote for international shipping, gather accurate information about the shipment.

At a minimum, you should have:

  1. Product Description
  2. Number of boxes
  3. Gross weight
  4. Box Dimensions
  5. Total CBM
  6. Pickup City in China
  7. Destination country and city
  8. Value of the products
  9. HS Code, when available
  10. Preferred method of transportation
  11. Information about batteries, liquids, magnets, chemicals, or other special or restricted items
  12. Incoterm or scope of the required service

The more accurate this information is, the more useful the shipping quote will be.

18. Common Mistakes When Calculating the Cost of an Order on 1688

There are several errors that can cause importers to underestimate the actual cost.

Mistake 1: Using only the unit price of 1688

The supplier's price is only part of the total cost.

Mistake 2: Ignoring Domestic Transportation in China

Purchasing from multiple suppliers may result in multiple domestic shipping charges.

Mistake 3: Calculating shipping costs before final packaging

Box dimensions may change after consolidation and repackaging.

Mistake 4: Ignoring Defective Products

Defective products increase the actual cost of each unit you can ultimately sell.

Mistake 5: Confusing international freight charges with the total cost of import

International shipping does not necessarily include customs clearance, duties, taxes, or final delivery.

Mistake 6: Calculating duties without confirming the HS code

Different classifications may result in different tariffs and regulatory requirements.

Mistake 7: Comparing suppliers based solely on price

Packaging, quality, MOQ, domestic shipping, production time, and final volume can all cause the seemingly cheapest supplier to end up being more expensive.

19. Practical Checklist Before Shipping an Order from China

Before authorizing international transport, check the following information:

Finally, use this formula:

Estimated total import cost ÷ Units sold = Estimated actual cost per unit

Conclusion

Calculate the Actual cost of a 1688 order before shipping it to Latin America It takes much more than simply multiplying the supplier's price by the quantity purchased.

A comprehensive calculation should cover the entire purchasing and logistics chain:

Price in 1688 → Domestic shipping in China → Purchasing service → Inspection → Warehouse → Repackaging → Final weight and CBM → International shipping → Insurance → Customs → Taxes → Destination charges

The most important piece of information is not necessarily the price listed in 1688.

It is the final cost per unit sold.

For importers who purchase products from multiple Chinese suppliers, obtaining accurate warehouse information before international shipment is especially important.

The final number of boxes, gross weight, dimensions, and CBM allow you to request a more accurate shipping quote and update the cost estimate before the goods leave China.

A supplier with the lowest unit price is not automatically the supplier with the lowest total cost.

To make a more informed purchasing decision, it is necessary to compare the total cost of transporting a compliant and marketable product from the supplier in China to the destination market in Latin America.

Don't just compare prices on 1688. Calculate the total cost of importing before you buy and before you ship.

Continue reading: More practical guides on 1688

How to Calculate the Actual Cost of a 1688 Order Before Shipping It to Latin America

What to Do When Multiple 1688 Suppliers Deliver Your Orders on Different Dates

When It's NOT a Good Idea to Combine All Your Products Into a Single Shipment from China

How to Avoid SKU Errors When Consolidating Products from Multiple Suppliers into a Warehouse in China

What to Do If an Inspection Finds Defective Products Before Shipping from China

Why the lowest price on 1688 doesn't always mean the lowest purchase cost

How to Prepare a Purchase Order Before Ordering Products from China: Specifications, Quantity, Packaging, and Quality

How to Reduce Shipping Costs by Consolidating 1688 Packages in China

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