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Taxes

Discussion in 'Black Hat SEO' started by rasmusk, Jan 5, 2014.

  1. rasmusk

    rasmusk Senior Member

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    Hello

    I've recently(2 month) back opened a really succesful webshop, and I was looking to expand into the UK.
    What a bad idea. Amazon ruins that market for sure.

    Lets take a look at this product. The product cost around 14 USD/piece @ 1000 pieces from China. I guess you can get around 10 USD/piece if you
    but 10k directly from manufactury.

    So sellers on amazon manage to sell this product for 13,5 pounds. Could someone explain me how this is possible?

    So VAT is 20%. After VAT is payed the seller have 10,8 pounds left. I don't know how much Amazon take in fees.
    Then theres expenses to boxes and bubblewrap.

    Then they also have free delivery in the UK. I don't know prices for this.

    I really can't imagine there will be payed a penny in taxes.
     
  2. Execute

    Execute Supreme Member

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    Well the people on Amazon could have a better relationship with the manufacturer and possibly get it for a lower price. But yes, 20% VAT and just type in Amazon expenses into Google and you should be able to find them. I know quite a lot of people that sell products on Amazon and I got the impression that it wasn't cheap and there were quite a lot hoops that they had to jump through. Good luck, I hope you can get it to work.
     
  3. kcampbell648

    kcampbell648 Newbie

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    Developing a relationship with manufacturers is crucial to succeeding on Amazon. It is literally how everyone making big money there does it as mentioned above.
     
  4. tony_d

    tony_d Elite Member

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    I'd suggest that you're paying too much for the product... $14/piece - can you give a clue as to what it is? Electronic items?
     
  5. Mike Saverio

    Mike Saverio Newbie

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    £10.8 = $17.7 at current exchange rate. Still more than the $14 per item paid
     
  6. Ballan

    Ballan Junior Member

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    That's just the reality of the UK market on a lot of categories. If you can make money elsewhere, do so and stop sweating on a way to make bugger all for a lot of pain.
     
  7. Beven

    Beven Elite Member

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    Possibly the manufacturers themselves selling the products.

    This has been known to happen.
     
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  8. kazhkaz

    kazhkaz Jr. VIP Jr. VIP Premium Member

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  9. ShadeDream

    ShadeDream Elite Member

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    He who laughs last, laughs longest.
    eBay is usually even worse.