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How should the profit of goods imported on behalf be calculated? What are the key points?

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I'm planning to do the business of importing goods on behalf recently, but I'm not quite sure how to calculate the profit. For example, besides the price of the goods themselves, the involved costs also include customs declaration fees, transportation fees, etc. How are these reflected in the profit calculation? In addition, what is the general charging standard of agency fees? Does it have a great impact on the profit? I hope experienced friends can explain it to me. How on earth should the profit of goods imported on behalf be calculated?

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Professional consultant answers

James Liu
James LiuYears of service:10Customer Rating:5.0

Foreign trade tax refund consultantConsult

The calculation of the profit of goods imported on behalf lies in clarifying the income and costs. In terms of income, it is usually the agency fee charged to the entrusting party. The common charging standards of agency fees are based on a certain proportion of the value of the goods, such as 1%-5%, or charged as a fixed amount per single ticket, ranging from several hundred to several thousand yuan. Costs include multiple parts. The goods procurement cost is the foundation. In addition, there are logistics-related costs such as customs declaration fees, inspection fees, transportation fees (international and domestic sections), storage fees, as well as possible tariffs, value-added taxes and other taxes and fees.

The profit calculation formula is: Profit = Agency Fee - (Goods Procurement Cost + Various Logistics Costs + Taxes and Fees + Other Costs). For example, when importing a batch of goods with a value of 1 million yuan, if the agency fee is charged at 3%, which is 30,000 yuan, the goods procurement cost is 800,000 yuan, the logistics and other costs total 50,000 yuan, and the taxes and fees are 100,000 yuan, then the profit is 30,000 - (800,000 + 50,000 + 100,000) = -920,000 yuan, which indicates that there is a loss in this import on behalf. Therefore, accurately accounting for various costs and reasonably formulating the agency fee standard have a significant impact on the profit.

Andrew Huang
Andrew HuangYears of service:7Customer Rating:5.0

Supply chain optimization expertConsult

When calculating the profit of import on behalf, don't forget to consider the cost of capital occupation. If the capital is borrowed, the interest should be included in the cost. For example, if the agency fee is charged according to the proportion of the value of the goods, the higher the value of the goods, the more the agency fee will be, and the profit may be higher, but the costs also need to be well controlled, otherwise the profit will be hard to guarantee.

Joseph Zhou
Joseph ZhouYears of service:10Customer Rating:5.0

Senior foreign trade managerConsult

Also pay attention to exchange rate fluctuations. If the imported goods are settled in foreign currencies, and the exchange rate changes from the time of signing the contract to the time of payment, it will affect the cost. For example, if the exchange rate of the US dollar is 6.5 when signing the contract and becomes 6.8 when paying, the cost will increase, and the profit will naturally be affected.

Robert Chen
Robert ChenYears of service:6Customer Rating:5.0

Customer service consultantConsult

When calculating the profit, don't ignore the storage cost. After the goods arrive at the port, if they cannot be picked up in time, the generated storage fees will have a great impact on the profit. Therefore, communicate with the entrusting party in advance about the pick-up time to reduce the storage cost.

Michelle Chen
Michelle ChenYears of service:3Customer Rating:5.0

Business coordination consultantConsult

When calculating the profit, consider the cost of unexpected situations, such as inspection fees. If the goods are inspected by the customs and there are problems that need to be rectified, it will also cost money, and these should be estimated in the profit calculation.

Amanda Yang
Amanda YangYears of service:3Customer Rating:5.0

Cost control consultantConsult

In the profit calculation, the labor cost should also be calculated. For example, the salaries and benefits of employees handling the import business are all part of the cost. Don't forget to include them when calculating the profit.

Jennifer Wang
Jennifer WangYears of service:4Customer Rating:5.0

Market development consultantConsult

The agency fee standard can also be negotiated with the entrusting party. If the business volume is large and there is long-term cooperation, the proportion of the agency fee may be appropriately reduced, but a small profit on a large volume can also ensure the profit. It needs to be comprehensively weighed.

William Yang
William YangYears of service:5Customer Rating:5.0

International logistics consultantConsult

When calculating the profit, it depends on the type of imported goods. Some goods have complex regulatory conditions and high customs clearance costs, so the profit margin is relatively small. These characteristics should be fully considered when calculating.

David Li
David LiYears of service:6Customer Rating:5.0

Senior customs declaration consultantConsult

For the profit of import on behalf, also pay attention to market competition. If the competition in the import on behalf business in the market is fierce, the agency fee may be pushed down. It is necessary to improve the profit by optimizing the costs.

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