How do I calculate profit margins when importing from China?

Use the complete landed cost formula: Product Cost + Agent Fee + (International Shipping ÷ Units) + Customs/VAT + Packaging + (Platform Fee × Selling Price) + Domestic Shipping to Customer = Total Cost Per Sale. Then: Selling Price − Total Cost = Profit Per Unit. Margin % = (Profit ÷ Selling Price) × 100. Through Fishgoo at zero agent fee, one entire cost layer is eliminated.

What profit margin should I aim for when importing?

Above 50%: excellent, import confidently. 30-50%: good, viable if demand is validated. 15-30%: thin, only works at high volume (50+ units monthly). Below 15%: not viable for small sellers — platform fees and unexpected costs will consume the profit. These thresholds account for returns, unsold inventory, and seasonal fluctuations.

Does the agent fee really affect profit margins?

Significantly at scale. At €2,000 annual sourcing: 5% fee = €100 lost. At €5,000: €250 lost. At €10,000: €500. Through Fishgoo at 0% service fee, every euro of these savings flows directly to your bottom line. Over 12 months of active reselling, the cumulative savings fund an entire additional product line — essentially free inventory.

How do I account for returns in my profit calculation?

Budget 5-10% of revenue for returns and refunds. On a €22 product: €22 × 7.5% = €1.65 average return cost per unit sold. Subtract this from your per-unit profit for a conservative estimate. Return rates vary by category: jewelry and accessories typically see 3-5% returns, clothing 8-15%, electronics 5-8%. Building the return rate into your margin calculation prevents unpleasant surprises.

What's the break-even formula for China imports?

Break-Even Units = Total Initial Investment ÷ Profit Per Unit. Example: 30 units of silver rings at €99 total investment (product + shipping). Profit per unit: €12.50. Break-even: 99 ÷ 12.50 = 8 units. Sell 8 rings and you've recovered your entire investment. The remaining 22 units are pure profit. Through Fishgoo at zero fee, your investment is lower, so break-even comes faster.

China Import Profit Calculator: Know Your Numbers 2026

China import profit margin calculator with worked examples

The most common mistake new importers make isn’t choosing the wrong product. It’s not calculating the full landed cost before ordering. You spot a product on Taobao for ¥15 (roughly €2) and start imagining €15 selling price — “7.5x markup, this is going to be amazing.” Then reality arrives in layers: shipping adds €0.80 per unit, VAT adds €0.60, Etsy fees take €2.80, domestic shipping to the customer costs €3, packaging adds €0.40. Your “€2 product” actually costs €9.60 to get to a customer. Your “7.5x markup” is actually 1.56x. Still technically profitable at €5.40 per sale, but a completely different business than the 7.5x fantasy.

I learned this the expensive way. My second month importing from China, I calculated margins based on product cost only — ignored shipping, ignored platform fees, ignored packaging. My “60% margin” product was actually running at 32% after all costs. Not fatal, but €280 less profit than I’d projected over 2 months. That was the month I built a proper cost spreadsheet. Every order since has been calculated to the cent before I click “buy.”

This article gives you the complete formula, worked examples across three platforms, and the decision framework that tells you whether a product is worth importing before you spend anything.

The Complete Landed Cost Formula

Every cost that stands between “product on Taobao” and “money in your account after sale”:

Cost layer	What it is	How to calculate
1. Product cost	Price on Taobao/1688	¥ price ÷ 7.2 (current rate)
2. Agent service fee	Commission on purchase	0% with Fishgoo / 3-10% with others
3. Exchange rate margin	Spread on currency conversion	~1-1.5% of product cost
4. International shipping	China → your country	Total shipping ÷ total units in parcel
5. Customs duty	Import tax (if applicable)	Varies by country and product category
6. VAT / sales tax	Destination country tax	Often included in tax-free shipping lines
7. Packaging	Tissue, box, card, sticker	€0.10-0.40 per order
8. Platform selling fee	Etsy/Amazon/eBay commission	10-40% of selling price (platform-dependent)
9. Domestic shipping	You → customer	€2.50-5 depending on carrier and country
10. Return allowance	Budget for refunds	5-10% of selling price

Profit Per Unit = Selling Price − (Sum of all 10 cost layers)

Margin % = (Profit ÷ Selling Price) × 100

Worked Example 1: Silver Ring on Etsy (France)

Cost layer	Calculation	Amount
Product cost (1688)	¥18 ÷ 7.2	€2.50
Agent fee (Fishgoo)	0%	€0
Exchange rate margin	€2.50 × 1.5%	€0.04
International shipping share	€24 parcel ÷ 30 rings	€0.80
Customs/VAT	Tax-free line, included	€0
Packaging	Tissue + card + small box	€0.35
Landed cost per unit		€3.69
Etsy listing fee	Fixed	€0.20
Etsy transaction fee (6.5%)	€22 × 6.5%	€1.43
Etsy payment processing	€22 × 4% + €0.30	€1.18
Domestic shipping (Colissimo)	Lettre suivie	€3.00
Return allowance (5%)	€22 × 5%	€1.10
Total cost per sale		€10.60
Selling price		€22.00
Profit per sale		€11.40
Net margin		51.8%

51.8% margin. Healthy. At 30 rings/month: €342/month profit. The zero agent fee from Fishgoo saves €0.13/unit versus a 5% agent — small per ring, but across 360 rings/year: €46.80 preserved. That’s 18 free rings worth of margin.

Worked Example 2: Desk Organizer on Amazon FBA (Germany)

Cost layer	Calculation	Amount
Product cost (1688)	¥12 ÷ 7.2	€1.67
Agent fee (Fishgoo)	0%	€0
Exchange rate margin	€1.67 × 1.5%	€0.03
Shipping to self	€35 ÷ 50 units	€0.70
German customs (Einfuhrumsatzsteuer)	19% on declared value	€0.45
FBA inbound shipping	DHL parcel share	€0.40
Landed cost (at FBA)		€3.25
Amazon referral fee (15%)	€16.99 × 15%	€2.55
FBA fulfillment fee	Small standard	€3.00
FBA storage (1 month avg)	Small item	€0.50
PPC advertising	Average per unit after optimization	€1.20
Return allowance (5%)	€16.99 × 5%	€0.85
Total cost per sale		€11.35
Selling price		€16.99
Profit per sale		€5.64
Net margin		33.2%

33.2% margin — thinner than Etsy because Amazon takes a bigger cut (referral + FBA fulfillment). Still viable at volume: 60 units/month = €338/month. The math only works because Fishgoo‘s zero fee keeps the landed cost under 25% of the selling price. With a 5% agent fee, landed cost rises to €3.33 → margin drops to 32.7% → the buffer for unexpected costs shrinks dangerously.

→ Full Amazon FBA sourcing guide

Worked Example 3: Watch Strap on eBay (UK)

Cost layer	Amount
Product cost (1688 watch strap)	€2.20
Agent fee (Fishgoo)	€0
Exchange + shipping share	€1.00
UK VAT + Royal Mail handling	€0.80
Packaging	€0.25
Landed cost	€4.25
eBay final value fee (12.8%)	€1.92
PayPal/managed payments	€0.65
Domestic shipping (Royal Mail)	€2.20
Return allowance (3%)	€0.45
Total cost per sale	€9.47
Selling price	€15.00
Profit per sale	€5.53
Net margin	36.9%

Platform Fee Comparison: Same Product, Different Margins

Platform	Total fee structure	Typical total fee %	Your margin on a €3.50 landed cost, €20 sale
Etsy	€0.20 listing + 6.5% transaction + 4%+€0.30 payment	~13-15%	~52%
eBay	12.8% final value + €0.30	~14-15%	~50%
Amazon FBA	15% referral + €2.50-5 fulfillment + storage	~30-40%	~32%
Vinted	Buyer pays fees	~0-5%	~68%
Instagram / Direct	Payment processor only	~2-3%	~72%

The same product at the same selling price yields vastly different margins depending on platform. Vinted and direct sales maximize margin; Amazon FBA maximizes volume. Most successful resellers use 2-3 platforms simultaneously — Etsy for brand-building, Amazon for volume, direct for repeat customers.

The “Should I Import This?” Decision Rule

Calculated margin	Verdict	Action
Above 50%	Excellent	Import with confidence. Scale aggressively.
35-50%	Good	Import if demand is validated through test order.
20-35%	Marginal	Only viable at 50+ units/month. Thin buffer for returns and surprises.
Below 20%	Not viable	Platform fees + returns + one bad month = loss. Don’t import.

Run these numbers before your first order, not after. The 5 minutes of calculation prevent the 5 weeks of waiting-and-hoping that follows an uninformed import decision.

→ Complete importing starter guide

→ Understanding all agent-related costs

Break-Even Analysis: When You Get Your Money Back

Formula: Break-Even Units = Total Initial Investment ÷ Profit Per Unit

Scenario	Investment	Profit/unit	Break-even
30 silver rings via Fishgoo	€99	€11.40	9 units (30% of order)
50 desk organizers via Fishgoo	€118	€5.64	21 units (42% of order)
20 watch straps (test order)	€65	€5.53	12 units (60% of order)

The jewelry example is striking: sell 9 rings out of 30 and you’ve recovered your entire investment. The remaining 21 rings are pure profit. This is why jewelry is the most popular Taobao resale category — the margin structure means you’re playing with house money after selling less than a third of your inventory.

FAQ

How do I account for unsold inventory?

Budget 10-15% of inventory as potentially unsold (styles that don’t resonate, seasonal products past their window). At Taobao’s source pricing, unsold inventory is a minor cost — 10 unsold rings at €2.50 each = €25 write-off. The same unsold inventory from a domestic wholesaler at €10/unit = €100 write-off. Low source cost makes inventory risk manageable.
Should I charge for shipping or offer free shipping?

“Free shipping” with the cost built into the product price converts 15-25% better than itemized shipping on most platforms. A €22 ring with free shipping outsells a €18 ring + €4 shipping — even though the buyer pays the same total. Build domestic shipping cost into your selling price and advertise “free shipping.”
How does currency fluctuation affect margins?

The CNY/EUR rate fluctuates 3-5% annually. At typical import volumes (€100-500/month), a 3% swing = €3-15/month variance. Not significant enough to hedge, but worth checking the rate before placing large orders. Fishgoo’s ~1.5% exchange rate margin is fixed and lower than most agents or banks.
What’s the most overlooked cost in import profit calculations?

Return handling cost. A returned item costs you: the product (if unsellable), the domestic shipping you already paid, the platform fees already deducted, and your time processing the return. A single return on a €22 item costs roughly €8-10 in total losses. At a 5% return rate on 30 sales/month, that’s 1.5 returns = €12-15/month in hidden cost. Build it into your baseline calculation.
Does the zero agent fee really matter at small volumes?

At 10 units/month from a €2 source product: 5% fee = €1/month. Trivial. At 100 units/month: €10/month = €120/year. At 500 units/month: €50/month = €600/year. The fee’s impact scales linearly with volume. Starting with Fishgoo at zero fee means you never have to switch agents as you scale — the cost advantage only grows over time.