Free tool · Is it worth importing?
What will you actually make on each unit?
Many sellers only find out their margin has gone after the first shipment. Put in the landed cost and what each sale costs you, and see the profit per unit, the break-even price and the most you can pay to land each unit.
How it’s worked out
- VAT on the sale: if you are VAT registered, a sixth of a 20% VAT-inclusive price goes to HMRC. You reclaim the import VAT separately, so the landed cost here should exclude it.
- Fees and advertising are taken as a share of the price the customer pays, VAT included; fixed fees and fulfilment per unit.
- Returns: each unit you can’t resell loses its landed cost, spread across the units you do sell.
- Margin is profit as a share of the price before VAT. Income tax on the profit is not included.
More free tools for importers
- Landed-cost calculatorDuty, anti-dumping duty and import VAT for your product, from live UK Trade Tariff rates.
- Quote comparerPut up to four supplier quotes side by side and see which is really the cheapest to land.
- Price checkIs a quote too cheap to be real? Compare it with what UK importers declare per kilo and the metal in it.
- Plan my importFour short steps give one plan: landed cost, UK rules and documents, the order-by date and supplier checks.
- Supplier checkDecode the code on a Chinese business licence and run the warning signs before you pay.
- Payment safety checkCheck the bank details before you pay a supplier, and what to do if they change.
Questions about margins
How do I work out the profit on a product imported from China?
Start from the landed cost per unit (price, freight, duty and import costs), then take off everything each sale costs: VAT on the sale if you are VAT registered, marketplace or payment fees, fulfilment and postage, advertising and returns. What is left is your profit per unit.
Do I charge VAT on products I sell?
Only if you are VAT registered. Registration is compulsory once your taxable turnover passes £90,000 in 12 months. If you are registered, a sixth of a 20% VAT-inclusive price is VAT you pay to HMRC.