Are taxes and fees required for returns on Amazon's European sites? How are they calculated?

Today, I will introduce you to the content of opening a store on Amazon. Now, more and more merchants are opening stores on Amazon. For Amazon merchants, they need to master a lot of store operation skills. Does Amazon's European site need to charge taxes for returns?

Taxes do not need to be refunded, as the money is not collected by the merchant. How much money will be lost by returning inferior goods? By observing and calculating the transaction list, we can find that it can be divided into the following situations:

The first one is that after the returned goods are received by the warehouse, they can be sold again.

The second type is that after the full refund is received, the item can no longer be sold. If you keep it, you will still have to pay storage fees. You can only discard it or remove it, and discarding it will also incur a disposal fee.

So what are the costs under these two conditions?

In the first case, if the customer is refunded the full amount after the return, how much refund can be received? The refund received does not include the delivery fee deducted from the first order, and 20% of the commission will also be deducted.

That is to say, if a return occurs, the actual cost is the return cost (which can be resold) = sub-delivery fee + 20% of the commission.

Take product v with a price of 15 as an example. Assuming the delivery fee is 2.41, the commission is 2.25, which means that if the product is returned, there will be a loss:

2.41+2.25*20%=2.86 USD. After the product is returned, it can be resold, but it still loses 2.86 USD. This fee accounts for 19.06% of the total selling price.

In the second case, product v is returned from the customer and is damaged. In addition to the cost, the loss should also include the original price of the product, which is equivalent to the factory price + the first-leg fee. Assume that the factory price of product v is 20, the first-leg fee is 8, and the rate is 6.3.

Return cost (not resaleable) = (factory price + first leg)/6.3 + delivery fee + 20% of commission + disposal fee (0.15).

vReturn cost = (20+8)/6.3+2.41+2.25*20%+0.15=7.45 USD.

v When not resaleable, the proportion of the sales price is 49.6%.

The rate at which the entire sector accounts for sales is determined by the rate of a single product * return. Assuming the gross profit is 30%, advertising expenses can be controlled within 10%. To ensure a net profit of 15%, the comprehensive fee for returns should not exceed 5%. I hope you understand.

Then, assuming the worst case scenario, each returned product is damaged and cannot be resold, the cost is higher. Of course, this extreme situation is also possible, so it is best to be mentally prepared for it.

Regarding the content mentioned at the beginning, I have introduced it to you in the above content. If you apply for a return on Amazon, taxes and fees will be charged. The logistics of cross-border e-commerce is relatively not that easy. I hope the above content can solve your problem.

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