China Import Profit Calculator: The Spreadsheet That Prevents Expensive Mistakes
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…
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.
Margins improve with volume, and part of that is the rate you get rather than the price you pay. Fishgoo’s Premium Rewards tiers lower per-order costs as monthly volume grows.
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
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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.
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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.”
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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.
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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.
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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.
→ Start with the lowest cost basis — Fishgoo, zero fee, 1688 wholesale access
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