In addition to initial startup costs, there are costs that must be factored in after the product is manufactured. If you are quoted an FOB price (Freight on Board), that cost may also include Inland freight costs to get your products to the port, then at the port you will be charged a variety fees that could include AMS, SEC, DOC, OTHC, SMD, PIF and other fees and taxes. At your country, you may have more fees to be concerned about; such as the ocean freight, import duty, customs brokerage fee, inland transportation fees and so on. All costs must be considered to know what your final actual delivered cost will be.
As an example, if the above fees added up to $500, that means if you buy 100 units, that equates to $5 per unit on top of the actual unit cost. If you order 5,000 units, with the exception of freight costs and import duty, most of the above fees won’t change so your new amortized cost per unit is just ~$0.10. Whether you ship 100 or 5,000, your supplier still has all the same amount of work to do in preparation of the order, and most of all the above charges will be added in. Obviously the more you buy, the less your per unit cost becomes. Both seller and buyer must consider all the costs to plan your business.