FBA Double TAX?


#1

Hi I am new to this amazon and I have chosen to do it with FBA. I am being made to pay tax twice. Is this normal?. Some of my products are making me pay nearly £10 on FBA fees when I know a friend who sells the same products and only has one tax showing in her account for all her products. Which means I cannot compete with pricing.


#2

Yes it is. The breakdown shows the tax you paid on the sale commission, ie the fee you pay on every item when it sells and then the tax you pay on the Fulfilment of the item, ie when Amazon pick, pack and despatch it for you. The two transactions are separate because Amazon are charged taxes themselves on sales of items and fulfilment of items.

Are you a professional seller or an individual seller? And what is your friend? This might explain discrepencies because as a Pro seller, you pay less in final fees than an individual seller, but you pay £30 a month subscription fee.


#4

Thank you for your reply

I pay 30 pounds subscription every 10th of the month as far as I am aware. A lot have changed since I first started in October. My UPS pick ups went from £4.32 and then randomly went up to charging me to £8.13 for the same weight and size packages. But thank God its now only £6.74

Also FBA seems to take more than half the amount of sales I make compared with the expenses everytime, is this normal?


#5

it depends on the weight, size of the product etc

all the fees would have been available for you to check BEFORE you sent in your items

You need to look at whether or not you can afford to raise your prices or if not - is FBA a viable option for you

Did your friend tell you all about FBA or did you read up on the seller university ?


#6

Thank you for your reply
My friend taught me to sell FBA but she is still learning too. This helps a lot thanks.


#7

quick question- are you UK based ?


#8

Yes I am
Can I change to Pro seller if I am not already on it?


#9

yes - you can upgrade to pro seller at any time - it works out better for you if you are selling 33-34 items per month

as your friend is also new i suggest you have a read through the seller university pages

also - just to note that you shouldn’t share any account details with your friend - don’t even log onto your account on each others devices


#10

How can I change to pro seller? Would you recommend it ?

Thank you for the advice I will look into it more.

Why is that not legal or will that cause problems ?
She does not log into my account she just looks at it when I have a problem.


#11

its not illegal but if there are links between your and your friends account ie same phone number or same ip address, amazon will think you have 2 accounts and that is not allowed under most circumstances

pro seller is recommended if you sell over 33-34 items a month

and you can upgrade going through your account settings - account info


#12

You are already on the Professional seller plan…above you state you are paying £30 per month prescription


#13

@Kevanden - well spotted :wink:


#14

So how is my friend getting charges less with no tax on FBA just the first Tax?


#15

I have no idea, more information will be needed to work that one out. Is your friend on the professional plan as well?.

You say that your friend has been teaching you but also say your friend is new as well…that’s not a good start although you could both read seller university together along with the Forum threads.

If you can try to give some example relating to one of your products along with the exact fees you have been charged for it via FBA then maybe someone could assist with whether it looks right or not


#16

Are you sure your friend isn’t? And is that image of fees from Amazon UK?


#17

If you are not Vat registered with Vat no logged with Amazon then you will be charged Vat. Everyone pay Vat, those of us that are vat registered claim in back one way or another.


#18

Here is a picture of a product I sell
At £4.14 where I ended up losing 25p due to the extra tax with FBA

Although my friend sold it for the same price at £4.14 but she has ended up with a profit of 19p or so. Due to the fact that she only had one tax on her transaction.


#19

Yes I am sure
And yes they are from Amazon Uk
What if it was Amazon EU?


#20

Okay, well that looks right to me. The first tax is for the referral fee, the second for the FBA fees - (pick pack deliver)

@The_Little_Shop @Retro_Emporium - does that look right to you - my heads spinning at the moment :smile:


#21

Ahh yes I am not VAT registered because hmrc told me I do not need it until i reach 85000?