Nowadays, most stores have formed their electronic branches in cyberspace. Maybe if we want to consider only the fees received for the sale of our products, we will not have a good income, and the reason for that is ignoring the landed cost.
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What is the cost of land?
In e-commerce, there are a series of costs that include the seller, and without considering it, the seller goes towards bankruptcy.
These costs include the costs of producing a product and delivering it to the customer. It is possible that the seller did not consider it in his e-commerce, and then that is why his work has so little income. For example, responding to customers online requires one or more operators to be used for product registration.
As a result, in order for e-commerce to reach its goal of increasing income, all costs must be included. In order to have a correct understanding of the cost of land, we examine a series of important influencing factors in this field.
Cost of goods sold (COGS)
It means all the costs spent for the production and supply of the product or the costs incurred for providing the product from the producer to the consumer. The cost of goods sold makes the seller more control over the expenses he spends in his store to reach the desired income. In fact, the COGS causes hidden costs to be noticed and clarified.
The cost of transportation
can include the cost of courier, e-mail, plane, ship, truck, and other such things. Each of these facilities has a different receiving rate to deliver at the desired speed, so naturally, the cost of land is changed.
Possible risks
Possible risks, such as damage to the product when it is stored in the post office warehouse or during transportation with the vehicle in question, the product then may be damaged.
Normally, to reduce the possible risks caused by transportation, costs should be spent on protecting the product, such as special packaging for each product or, inexpensive cases, insurance for each product.
the custom fees
Although customs are used to export products abroad, customs fees cannot be ignored. For example, communication is needed in one country to export products to another country and is done through customs. Also, there should be negotiations between the parties so that all the laws are adapted to the laws of both countries.
The work rules that are considered by the two companies in the contract must be in accordance with all the principles of a country, and this causes the interference of the Ministry of Foreign Affairs and Political Affairs. It is not important for export that it is done through customs, and in this context, the cost of land cannot be denied.
Read more: Cost-Effective Last Mile Strategies: Revolutionizing the Delivery Landscape
Tax charges
There are different laws for taxes in different countries, but in general, it can be said that every country charges taxes.
Taxes help the economy of every country, and the government does not ignore them, but if you start a business or have an e-commerce, you must pay the business tax. According to the extent of work, the amount of tax is also different, for example, export has its own tax. Depending on the type of business, the amount of tax paid is different.
For example, most countries consider lower taxes for companies that have just started working, but the tax must be paid.
The labor costs
Another cost to consider is the labor cost. Every business needs human resources. This need can be in the field of production, that is, the workers who produce the product, or it can be in the field of product design, that is, the experts who design the product, or even if it is food and agricultural products, it can be in the field of crop and harvest.
In the field of internet business or e-commerce, we need a workforce, people who can provide services to people in order to respond to orders. From those who register the orders to the workers who move the orders, they need money.
According to the rules of the Ministry of International Labor Workers who work in any field should be insured with health insurance and injury insurance. This type of insurance also requires a fee then It is accepted by the employer.
the cost of land is wide!
The above items are just a series of land costs, which are the most important. And the cost of land is wide. Maybe you have a question about how to calculate the cost of the land. This can be done in different ways, which we will examine two examples:
It can be used by using specialized software to calculate the cost of land, or it can be used in different calculators that are engineered for this purpose. Or, it is possible to add all the main costs that have been spent together and the result is the approximate amount of the cost of the land, of course, this cost is somewhat approximate.
If you calculate the cost of land and you realize that the cost of consumption for your business is high, you can reduce it to some extent. Of course, this work requires skill, but we will review some examples of activities that can reduce the cost of land. For example, you can get raw materials from people whose quality of raw materials is higher than the rest of the market. In this way, the price of the final product can be added And with this, compensate for your lack of income.
Another way is to try to find raw materials at a lower price than usual.
Or you can have an agreement with shipping companies that will reduce shipping costs. You can even pay taxes on time to avoid being fined in the tax field, which avoids being fined and the cost of land is reduced to some extent.
Business is skill and talent, do this art more intelligently to earn money and you will be more successful.
