How Taxes Work with DropSure Orders

As global e-commerce continues to expand, staying compliant with local tax regulations is becoming increasingly essential for businesses. Among the most important tax systems that affect cross-border sales in the European Union are VAT, OSS, and IOSS. These systems not only ensure compliance but also help businesses streamline their operations and avoid costly mistakes. In this article, we will break down what VAT, OSS, and IOSS are, how they work, and how understanding these frameworks can help you stay ahead in the global e-commerce game as we approach 2025.   Here’s an table with Standard VAT Rate for some important countries:    Note: The United States does not have VAT; it only has sales tax. Sales tax is levied only at the retail stage, unlike in most countries where taxes are applied to the value added at each stage of the supply chain.   What is VAT ?   VAT is charged at each stage of the supply chain, including production, wholesale, and retail. At every stage, tax is applied to the “added value” of goods and services. The “added value” refers to the extra value created at each stage, like processing, transforming, transporting, and distributing the product. Example: Let’s say you’re a toy factory. You make a toy and sell it to a store. The store then sells it to a customer. At each step, from production to sale, a small tax is added. But each person only pays VAT on the “added value” they created, not the entire product.   Let’s walk through the process: Assume you buy a television at an electronics store, priced at 500 euros. The VAT rate is 20%. 1.Merchant Purchase (Wholesaler) The merchant […]

Confused about whether you should pursue dropshipping or traditional ecommerce? Don’t worry, you’re never alone, we have got your back with you step by step! Long Descrition In this article, we’ll break down the essentials of each so that you can decide which is best for your own goals! Things like operations management, customer service, inventory, and logistics will look slightly different, depending on which model you go with. Let’s get started to find the best for you! This guide elaborates on the core features to help you come to a decision that is right for your business. What is Dropshipping? Dropshipping is a super easy way to operate an online store without having to think about holding stock, filling boxes or sending products. When someone orders from your store, you forward the order to your supplier, who sends the product directly to the customer. That’s it! You never even have to touch the product. Source: Red Stag Fulfillment As seller, your job is to promote the products and care for your customers—answer any questions, resolve any issues, and ensure they’re happy. The supplier handles everything else: they manage the inventory, pack the order, and ship it directly to your customer. It means that you can concentrate on simply growing your business while they manage the logistics. What is Traditional Ecommerce? Traditional ecommerce is the business model most people are accustomed to. In this model, you maintain your own inventory of goods, and take care of all facets of your business. You oversee everything from inventory management to packaging and shipping. You are basically the perfect “store owner.” You’re responsible for creating and managing product listings, making sure you have […]

In the fierce competition of cross-border e-commerce, Temu and Amazon represent two distinct business models: Temu uses “ultra-low prices” as its weapon, relying on China’s supply chain resources and Pinduoduo’s traffic support to attract price-sensitive users, focusing on “dirt-cheap” small commodities and fast fashion; Amazon focuses on “quality and efficiency,” with a strict quality control system, global logistics network, and Prime membership ecosystem, catering to consumers across all income levels, especially meeting the long-term value needs of middle and high-income groups. The competition between the two is not just about price wars but also about the essence of consumer demand—choosing between “low-price fast consumption” or “quality assurance + efficient service.” This article will conduct an in-depth comparison from three dimensions: pricing strategy, quality control, and shipping and logistics, revealing their core differences and providing consumers with clear decision-making references. Price Temu Temu has ultimate low price.For example, a T-shirt on Temu might only cost 10 yuan or even lower. It sources directly from Chinese factories, eliminating the middlemen to earn the difference, and also uses platform subsidies to spend money, all to attract users. But the problem is, in order to reduce costs, the clothes might be made of cheap fabric, which pills and unravels after just a few wears. Temu directly connects with factories in Yiwu and Guangzhou, cutting out the middlemen, and with Pinduoduo’s money for subsidies, that’s why the prices can be so low. But the problems are: slow logistics (it may take more than 20 days to receive goods), and the packaging is also simple, making it easy for things to break; Some products may be sold at a loss, relying on attracting new users and […]