A large number of sellers urgently raised prices! Just now, Amazon officially implemented...

I had hoped that my luck would turn around this year, but the cross-border industry has been unlucky. At the beginning of 2021, many sellers lost money due to factors such as tax rate updates and exchange rate fluctuations!

After the new year began, the platform’s withholding of VAT, which has been talked about for so long, has finally arrived.

According to feedback from many sellers, orders placed on Amazon's UK site are now subject to 20% VAT withheld and paid directly during the sales process. Regardless of the product price or shipping costs, 20% VAT will be directly deducted.

In fact, Amazon officially announced this news a long time ago. In October last year, the official sent a wave of emails to remind sellers to pay attention to the changes in VAT policy after Brexit.

After Amazon officially withheld value-added tax, tactics such as “using preferential tax rates to make low declarations” have lost their operating space, and a large number of sellers have hurriedly begun to raise prices!

A seller said that the prices of his categories have all increased because 85% of Chinese sellers have low tax rates. After the tax reform, he has to pay an extra 500,000 in taxes every year . If he doesn't increase the prices, he will have to stop operating the UK site. There is really nothing he can do!

However, once the price is raised, the number of orders will plummet, which is extremely desolate! Some sellers sighed: When luck comes, heaven and earth will help, but when luck is gone, heroes are helpless...

In addition to Amazon’s tax payment obligations, the recent US exchange rate has also made many Amazon sellers particularly worried!

In recent days, the US dollar has faced several consecutive declines, which has made sellers who have undrawn balances in their accounts regretful! As of today, the offshore RMB against the US dollar has fluctuated upward, approaching the 6.44 mark. As of 9:34, the onshore and offshore RMB against the US dollar were reported at 6.4554 and 6.4410 respectively.

Currently, the US dollars in the pockets of cross-border sellers are shrinking. Since late May last year, the RMB exchange rate has been rising strongly, and has now risen by nearly 7%.

At the end of May last year, the US dollar exchange rate reached 7.17, but now it has fallen to 6.4, which means that for every 10,000 US dollars exchanged by the seller, the loss will be nearly 8,000 yuan, and for 100,000 US dollars, the loss will be nearly 80,000 yuan ... It's really enough to make people cry in front of the screen!

At present, how to stop loss is the most concerned issue for some sellers! If you want to stop loss, you must first learn to save!