More About Costs to Take into account

-Barcode costs – Not a huge amount, but not to he ignored, especially when you’re just starting out. The cost per barcode is much higher on small orders.
-Purchase price (FOB) – Initially this price is likely to be higher as you test the water with your product. Assuming you buy in larger quantities when reorder, the cost per unit should drop.
-Shipping costs – I urge you to use a US courier, as Amazon’s fulfilment centres have numerous rules when
it comes to accepting inventory. Although, they won’t say it, the fact is they prefer dealing with the likes of
FedEx or UPS (or any other large US courier company).
I’ve heard stories of people having to get UPS to collect their products from the courier they originally
employed just to get Amazon’s fulfilment centre to accept them. Alternatively use a UK-based freight
forwarder. I use Regional Express
(https://www.regionalexpress.co.uk), not least because they have a division experienced in delivering to Amazon’s fulfillment centres.

-Import duty – As per your commodity code.
-VAT on your imports – That adds 20% to your largest input cost. Ouch!
-VAT on your sales – I’ve registered for a flat rate of tax, so pay 7.5% VAT but can’t claim VAT back on purchases. What VAT arrangements you make are up to you. If you’re unsure, seek professional advice.
However, you should be aware that if, during the course of any 12 months, your taxable supplies exceed the VAT
registration threshold (£81,000), you are legally obliged to register for VAT.
-FBA costs – This is what you pay Amazon and covers storage, referral fee, packaging and postage. This Is
calculated using a number of factors including the of product, the weight and the size. (FBA costs are explained in detail later on in this chapter.)