Inbound freight per unit, and how to allocate a freight bill
Freight to bring stock in is part of what the goods cost you, but it arrives as one bill for a whole shipment. Split it across the units by quantity, weight or value, and record the per-unit result.
Updated
- Purchase price$19.00
- Freight$1.30
- Duty$0.95
- Brokerage and handling$0.15
- Landed cost$21.40
Three ways to split a bill
A shipment of 400 throws and 600 cushion covers, with a freight bill of $900:
| Method | Throws, each | Covers, each |
|---|---|---|
| By quantity (1,000 units) | $0.90 | $0.90 |
| By weight (throws 1.2 kg, covers 0.3 kg) | $1.64 | $0.41 |
| By value (throws $19.00, covers $6.00) | $1.53 | $0.48 |
The total allocated is $900 in every case. What changes is which product carries it. The throws take up most of the weight, so splitting by quantity understates their cost and overstates the covers’.
Per shipment or a standing rate
Freight changes with every shipment. You can update the per-unit figure each time stock arrives, or set a standing rate from the last few shipments and review it each quarter. A standing rate is less exact and far more likely to be kept up.
Does it belong in cost per item
Usually yes. Shopify’s own definition of the field leaves shipping out, and Shopify says landed cost allocation needs a third-party app, so it is your decision. Including it means Shopify’s profit reports show margin on what the goods cost to bring in.
Recording it in Cogsy
Add an “Inbound freight” cost kind, per unit, and enter the figure on each product or variant with the date it applies from. A new shipment at a new rate is a new dated row, and the earlier rate stays in the history.
Questions
- Is inbound freight part of cost of goods sold?
- Yes, in standard accounting practice the cost of bringing inventory to your location is part of the inventory's cost. Outbound shipping to customers is treated separately.
- Which allocation method should I use?
- By quantity when the items are similar. By weight or volume when they differ in size, because that is what the carrier charged for. By value when the shipment's cost is driven by insurance and duty more than by space.
- Does Cogsy allocate a freight bill for me?
- No. Cogsy records the per-unit amount you work out. Apps that receive purchase orders can spread a bill across the lines of a shipment.
Related
Glossary
Landed costLanded cost is what a product costs by the time it reaches your warehouse: purchase price, freight, insurance, duties and handling. Formula and worked example.
Guide
Landed cost in Shopify after StockyStocky ended on 31 August 2026 and Shopify purchase orders do not change cost per item. How to keep a landed cost per unit in Shopify now, by hand or with an app.
Cost type
Import dutiesHow to work out import duty per unit for a Shopify product, which taxes count as cost and which are reclaimed, and how to record duty so a rate change is visible.
Feature
Costs on top of the unit costPackaging, fulfilment or duties per unit, or fees as a percentage of the price, for a variant, a product or the whole shop.