Method and assumptions
A damage or loss allowance reduces the units available to absorb a shipment cost. This tool allocates logistics costs only and does not add product purchase value.
Sellable units = shipped units × (1 - damage rate). Cost per sellable unit = total logistics cost / sellable units.
Worked scenario
Add base freight, fuel, handling, documents, brokerage and destination delivery for one shipment, then divide by expected sellable units after damage and loss. Compare allocation by shipped units with allocation by sellable units to make the cost of routine loss visible.
How to interpret the result
Unit allocation is suitable for a single-SKU shipment. Mixed shipments may need weight, volume or value drivers. This result is logistics cost per sellable unit and does not include product purchase value unless explicitly added in a landed-cost model.
Input reference
- Currency
- Example default: USD
- Base freight
- Example default: 3000
- Fuel and carrier surcharges
- Example default: 400
- Brokerage and handling
- Example default: 250
- Destination delivery
- Example default: 350
- Units shipped
- Example default: 2000
- Damage and loss allowance
- Example default: 2%
Common mistakes
- Dividing by shipped units despite expected loss.
- Allocating mixed products equally without a causal basis.
- Omitting final invoice surcharges from reconciliation.
Before using the result
- Define the shipment cost boundary before allocation.
- Use expected and actual sellable units separately.
- Record quote-to-invoice variance for the next shipment.
Questions to check before deciding
Should duty be included?
Use the landed cost calculator for duty and import tax. Include only logistics-related charges here.
Why divide by sellable units?
Lost units cannot generate revenue, so surviving units must absorb the shipment cost for pricing analysis.
Independent calculator. Not affiliated with or endorsed by the platforms mentioned.