Does Ecommerce on Amazon is still a good way to make profits?

Discussion in 'Ecommerce Forum' started by Taobao agent, Mar 13, 2019.

  1. Taobao agent

    Taobao agent UKBF Contributor Full Member

    67 0
    Hi All
    I work for a Taobao Agent in China. We would like to open an Amazon account to sell some products.
    As an online shopping Agent, we have a large database about popular products in overseas. We can use the database to decide what we sell on Amazon.
    USA and Russia are our main market.
    Numbers of people using our service to buy goods from Chinese online shop.
    The question is that Amazon is still a good way to make profits for our company?
    Can anyone give us some good advice?
     
    Posted: Mar 13, 2019 By: Taobao agent Member since: Jul 23, 2018
    #1
  2. Mr D

    Mr D UKBF Legend Free Member

    12,521 1,332
    Yes can be good to sell products on.

    If you ship products direct you would be expected to pay VAT and duty on imports. If customers have to pay they'd also get an admin charge which they would expect you to reimburse them for in addition.

    If you store products in an EU country you get to register for VAT collection and include that in your pricing, paying the tax to the relevant government or governments. There is no threshold for VAT when storing goods locally though there is a distance threshold when sending yourself.

    Amazon hold funds until after the last delivery date of your product so typically you get the money 3 or 4 weeks after the sale.

    And watch out for other sellers on the same product page undercutting you in order to get the sale.
     
    Posted: Mar 13, 2019 By: Mr D Member since: Feb 12, 2017
    #2
  3. Taobao agent

    Taobao agent UKBF Contributor Full Member

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    Hi Mr.D
    Thanks for your response.
    So far, we focus on the USA market, so we don't need to consider to pay VAT.
    We would like to us FBA, I think that it is an easy way to do business for a new Amazon seller like me.
     
    Posted: Mar 14, 2019 By: Taobao agent Member since: Jul 23, 2018
    #3
  4. Mr D

    Mr D UKBF Legend Free Member

    12,521 1,332
    Yes, US market doesn't have VAT.

    They do have sales tax which you collect as needed. And of course import duty for you as an importer needs to be paid.
     
    Posted: Mar 14, 2019 By: Mr D Member since: Feb 12, 2017
    #4
  5. Taobao agent

    Taobao agent UKBF Contributor Full Member

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    About the sales tax, it is only for some of the states. And someone told me that the tax will be paid by buyer. Not sure.
     
    Posted: Mar 15, 2019 By: Taobao agent Member since: Jul 23, 2018
    #5
  6. Mr D

    Mr D UKBF Legend Free Member

    12,521 1,332

    Yes sales tax is paid by buyer. Just like VAT is paid by buyer. Both are added buyer taxes.

    And yes sales tax is only in some states and the rate of sales tax varies.

    You may find it easier to use a different fulfilment service and can then specify where your goods are stored.
     
    Posted: Mar 15, 2019 By: Mr D Member since: Feb 12, 2017
    #6
  7. Taobao agent

    Taobao agent UKBF Contributor Full Member

    67 0
    Thanks for your Info!
     
    Posted: Mar 18, 2019 at 9:20 AM By: Taobao agent Member since: Jul 23, 2018
    #7