Amazon FBA pros and cons and tariff calculation issues

Time:2017/7/12 14:57:16

I. advantages and disadvantages of Amazon FBA
The full name of FBA is Fullfillment By Amazon, and the Chinese translation is called Amazon logistics. It is provided by Amazon, including warehousing, picking, packaging, delivery, collection, customer service and return processing of one-stop logistics services.
Advantages of FBA:
1, improve Listing rankings, help sellers to become specialty sellers and grab shopping carts, improve customer confidence and increase sales
2, many years of rich experience in logistics, warehouses around the world, intelligent tubes
3 、 delivery speed is super fast (warehouse mostly close to airport)
4, 7*24 hours, Amazon professional customer service
5, erase the bad disputes caused by logistics
6, the price of more than 300USD products exempt from all FBA logistics costs
The pain point of FBA:
1, generally speaking, costs are slightly higher than domestic shipments (especially FBA deliveries on non Amazon platforms), but it also depends on the weight of the product
2, poor flexibility (common short board, all overseas positions but the other third parties or overseas positions can have special Chinese customer to deal with some problems in FBA, but only with the English and customer communication, and communicate by email reply not to the third party warehouse overseas customer service so in a timely manner)
3, the FBA warehouse will not provide clearance service for the seller's head shipment
4, if the preliminary work is not done, the label scanning problem will affect the warehousing of goods, and even can not enter the library
5, the return address only supports the United States (if you are an American site of FBA)
6, customers want to return, you can return, do not need to have too much communication with FBA (return is too random, to the seller a lot of trouble)
In addition, FBA does not accept the following services:
If the seller's FBA products involve the following, Amason will not be able to deliver and return the goods to the seller as soon as finds out, and Amason has the right to destroy such products.
1, Products prohibited for sale on Amazon.com. on the Amazon platform expressly prohibited products (such as tobacco products including electronic cigarette, alcohol, gunpowder, guns, knives, perishable products, toxic and harmful substances, drugs)
2, Gift, cards, gift, certificates, and, other, stored, value, instruments (gift cards, gift certificates, other stored value tools products)
3, Extremely large or heavy products (large or heavy products)
4, Damaged, or, defective, Units. (damaged and defective products), Note:, Used, condition, may, have, damage, as, long, products, as, the, product, is,, labeled, with, condition, the, appropriate
5, Products, that, have, been, illegally, replicated, reproduced, or, manufactured. (illegally copied or produced products)
Product, that, do, not, comply, with, any, agreement, between, Amazon, and, Seller, (any product that did not follow the terms of the contract between the Amazon platform and the seller)
Two, the calculation of tariff collection
Customs tariff threshold of cities in the world
British threshold: 15 pounds
Composition of a comprehensive tariff:
VAT (value added tax) + DUTY (Guan Shui) + ADV (customs clearance, incidental expenses)
VAT = (value (declared to customs) + freight +DUTY) X 20%
DUTY = value X, product tax rate
Australia starting point: 1000 Australian dollars
Composition of a comprehensive tariff:
DUTY + GST + ADV (customs clearance fees)
GST = UK VAT (value (declared to customs) + freight + DUTY) X 10%
DUTY = value X tax rate
Us starting point: $200
Composition of a comprehensive tariff:
DUTY (customs) + ADV (customs duties)
DUTY = value X tax rate
EU threshold: 22 euros
Composition of a comprehensive tariff:
VAT = (value (declared to customs) + freight +DUTY) X 19%
DUTY = (value + freight 70%) X product tax rate
The Swiss tariff starts at 100 Swiss francs. (Switzerland was not a member of the European Union, a neutral country)
Base tax rate; /WTO tax rate
"WTO" here means the MFN (MFN) tax rate, the tariff rate of a country's imports from its most favoured nation.
Have a bilateral or multilateral trade agreements, MFN treatment is one of the important terms of the general agreement on Tariffs and trade, according to the provisions of this article, preferential, exemption and privilege of the Contracting States between now and in the future to third countries in trade also give the other Contracting Party, reflected in the tariff. Is the most favored the IRS, this form of tariff concessions is reciprocal.
The most favored nation tax rates are now applicable to trade between the member countries of the world trade organization, and the MFN tax rate is the normal rate. In general, GSP and the preferential tariff in the free trade zone are tariff relief on the basis of the WTO tariff.
Base tax rates: the preferential arrangements for some ASEAN countries, such as the preferential base, the nuclear and the starting tariff.
Preferential duty rate: the preferential tariff tariff lower than the ordinary rate levied on imported goods from a particular beneficiary.
The preferential tariff is generally beneficial, through international trade or tariff agreements, agreements of mutual preferential tariff treatment; but there are unilateral, goods give beneficiaries of one-way preferential tariff treatment does not require reverse incentives, such as the GSP preferential tariff; WTO to implement multilateral common MFN tariff, contracting any party to all parties.
At present, preferential tariff includes two kinds: GSP preferential rate and free trade zone preferential margin.