Amazon, eBay, Paypal, Mallgroup.cz and Alibaba fees explained

Amazon, eBay, Paypal, Mallgroup.cz and Alibaba fees explained

So you want to start in Ecommerce?

Well, you came to the right place because I am registered on all of these platforms as a seller. And I will go into detail on how this business works.

First things first for Amazon and Mallgroup.cz you need to have a registered company. I would never register as a sole trader because of the high tax and other problems that you have with capital.

I registered a company outside the EU because of some really good reasons. They mostly have to do with tax and pricing. Needless to say I got my fist company up and running for only 60€ in 3 days. But i cant share this method in public if you want to know more write me an email and I will explain in detail how easy it is.

For eBay you can register as an individual you don’t have to have a company.

Amazon fees:

Amazon charges a 12-20% fee. through most fees are around 15%.
That means if you price your product for 100$ they take 15$ right out of the bat. then there is a monthly fee which is 40$. or you can have the free plan but you have to pay 1$ for every product you sell.


And then there is the Alibaba transaction fee which is also 3% if you purchase your products there. And don’t forget the import Tax which is around 20%. And then there is shipping which depends on how many products you order so I won’t calculate shipping into this.

Then you have shipping fee which is different for every product
I am paying around 15-20$. But i am shipping big boxes that weight around 18kg

eBay Fees:

eBay charges a 10% fee on most items. Then there is Paypal Fee which is 3%.
So its basically a 13% fee.
Then you have shipping fee which is different for every product
I am paying around 15-20$. But i am shipping big boxes that weight around 18kg

Mallgroup.cz

Then we have mallgroup.cz which is a company located in Czech republic which operates in Czech Republic, Slovakia, Poland, Hungary, Slovenia and Croatia.

So basically their fees are around 15% Flat.
Then you have shipping fee which is different for every product
I am paying around 15-20$. But i am shipping big boxes that weight around 18kg

Alibaba heaven for reselling your products

This is your main shop for products. I am shopping here for almost everything. Alibaba charges a 3% fee when you purchase a product + shipping and then you have to pay import TAX which is different in every country. And it ranges from 19-22%. I live in the EU.

Basically eBay, Amazon, and Mallgroup.cz are just glorified Alibaba vendors with higher prices. I mean 90% of the stuff you see there you can find on Alibaba. The only difference is the brand name.
There is an alternative for Alibaba but it’s only in Chinese language. And it’s basically the same interface as Alibaba but with lower prices. I am giving this info away for a small fee also. Just write me an email.

Taxes on your products

Every time you sell something you need to pay a TAX also. This tax is around 9.5% in most EU countries.

So the calculation is like this –>

So before you make your first purchase think it through and calculate everything because it can get costly and you can end up in the negative territory.

Summary

So to sum it all up. Its best to have an example.

You purchase a product on Alibaba that costs 20$.
And let’s say shipping from china is 0$.

20$+3%Alibaba transaction fee = 20.6$
20.6 +20% Import Tax = 24.72$

Then You want to resell that product on eBay for 50$.

50$-9.5% VAT = 45.25$
45.25-13%eBay Fee= 39.4$
+shipping cost lets say its around 4$. = 35.4

So total profit: 35.4$-24.72$= 10.68$ of profit.

Now all those fees are a big ripoff in my opinion but that’s how this system works.

In the best scenario, you are hoping to get a 30% profit. So if you invest 10 000$ in products you are hoping to gain 3000$ back. But from my own experience, the margin is much lower. I talked with a lot of people in person how much they make and they all agreed with me that you need to invest a lot of capital to gain some cash usually 10-30%. But its a lot better than saving your money in a bank where inflation is eating it away.

If you have more questions about this you can always write me an email.



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