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European warehouse OR fulfillment company

Shipping, VAT, euro merchyant account



5:27 am on Nov 2, 2008 (gmt 0)

10+ Year Member

We sell widgets from USA. Online, off cause. The widgets are ~12*6*2 inches and weight ~1.6 lbs (5*15*30 cm, 0.75 kg) Shipping to Europe is too expensive and slow. We want to hire a European fulfillment company OR open our own warehouse. So I have several questions:
1) What to do with VAT? Looks like Spain is the best place to settle the new base - because VAT is 16% - lower then other countries.
2) What about shipping charges? Parcel rates from UK are cheaper then from Germany (excepting Germany and UK accordingly).
3) What to do with credit card companies cross-boarding restriction? How can we set up a merchant account in Euros and Pounds? Not a third party billing but a merchant account.
So, overall, which country is the best to set European warehouse?

[edited by: Tsuren at 5:29 am (utc) on Nov. 2, 2008]


11:34 am on Nov 2, 2008 (gmt 0)

10+ Year Member

Hi Tsuren,

What's the average value of the widgets you're selling?



3:43 pm on Nov 2, 2008 (gmt 0)

10+ Year Member

jweighell, wholesale $32-$40 plus shipping from China (~$4 to USA) plus applicable taxes. Retail $65-$90 in USA plush shipping to the end consumer. European retail prices is a little bit higher - 60-100 Euros.

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