For distributors, wholesalers, and Amazon sellers, the product price is only part of the total purchasing cost. To accurately calculate profit margins, buyers must consider freight costs, import duties, customs clearance fees, and local taxes.

In this article, we will break down the actual landed cost of importing 600 stylus pens and estimate the potential profit margin.

Order Details

• Product: Active Stylus Pen
• Quantity: 600 pcs
• Unit Price: USD 6.50
• Product Value: USD 3,900

Understanding EXW and FOB Pricing

EXW (Ex Works)

Under EXW terms, the buyer is responsible for arranging transportation from the factory, export clearance, freight, and import procedures.

FOB (Free On Board)

Under FOB terms, the supplier delivers the goods to the designated port and handles export procedures. The buyer only needs to arrange international transportation and import clearance.

For most overseas buyers, FOB is the preferred shipping method because it simplifies export logistics.

Freight Cost Analysis

DHL Express Shipping

• Total Freight Cost: USD 710
• Freight Cost Per Unit:

USD 710 ÷ 600 pcs = USD 1.18 per pen

Sea Freight Option

For larger quantities, sea freight can significantly reduce transportation costs.

Typical sea freight cost per stylus pen:

USD 0.30 – USD 0.60 per unit

Sea freight is generally recommended for orders above 2,000 units.

Import Duties and Taxes

Import taxes vary by country.

For example, in Brazil, importers may face:

• Import Duty
• IPI Tax
• ICMS Tax
• Customs Clearance Fees

Depending on the import method and customs classification, total import costs can be relatively high.

For this example, we estimate:

• Import Duties & Fees: USD 1.20 per unit

Final Landed Cost Calculation

Final landed cost per stylus pen:

USD 8.88

Recommended Retail Price

Based on current market conditions, distributors and retailers commonly sell active stylus pens at:

• USD 19.99
• USD 24.99
• USD 29.99

Estimated Profit Margin

If sold at USD 24.99:

• Selling Price: USD 24.99
• Landed Cost: USD 8.88
• Gross Profit: USD 16.11

Gross Margin:

181%

This provides distributors with a healthy profit margin while remaining competitive in the market.

Why Work with MEKO?

MEKO specializes in manufacturing active and universal stylus pens for distributors, wholesalers, Amazon sellers, and OEM brands worldwide.

We offer:

• Factory-direct pricing
• Stable product quality
• OEM & ODM services
• Fast production
• Global logistics support
• Professional after-sales service

Interested in active stylus pens, universal stylus pens, digital display stylus pens, or OEM branding solutions?

Contact Rhea now for free consultation and the latest factory pricing.

📧 rhea@mekotech.com

📱 +86 13755080019 (WhatsApp)