I am using alibaba mobile app so not ablereachable to give link. But I found a manufacturer on indiamart. They give me 231+ 28%GST = 296(excluding shipping from rajkot to gurgaon).
Lets take shipping cost 10rs per piece equals 306 net landing cost.
When I calculate amazon FBA fees it equals approx 247 including shipping, fixedb cost, packing, warehouse charge & 18% service tax.
Now my expenses on one product is 306+247= 553.
If I sell it on amazon at 600( which other sellers sells) than I get only 47rs profit. And one more thing this 600 price is including 28% tax.
If I talking about taxes then 28% on 231 is 65 and tax on selling price 600 is 168. So net payable tax to government is 103 rs.
Lets calculate again.
Buying = 231+10(shiping)+20(branding of my own)= 261
Amazon FBA= 247
Government tax= 103
Sell price= 600
Profit= Sell- (buy + FBA + tax)
= 600- (261+247+103)
= 600 – 611
PROFIT= -11
I am buying product at 231 and sell at 600 but middle expenses eat all profit. What should I do now.
