Good to know about Taobao
- Huge range, low prices: The same product varies a lot in price and quality between sellers. Check reviews and sales counts.
- Buying-agent fee: Usually a % of the item price paid to an agent who buys for you. Set it to 0 if you buy yourself.
- Forwarder: Collects your orders at a warehouse in China and ships them to Korea, usually charged by weight.
How it is calculated
- Cost per item = (item price + local shipping) × exchange rate + agent fee + international shipping + extras + duty and VAT, divided by quantity
- Buying agent: duty-free if the item value (with local shipping) is 150 USD or less; above that, duty and 10% VAT on (items + international shipping)
- Stock import: duty and 10% import VAT regardless of value. General taxpayers recover the import VAT, so it is left out of cost
- Net profit = price in Korea − marketplace fee − cost per item − domestic courier − VAT
The 150 USD limit is the current rule. The government is reviewing the small-import exemption, so check Korea Customs notices. VAT for buying-agent businesses depends on how you file; check with a tax accountant.
Frequently asked questions
Is duty charged on Taobao agent purchases?
When the order clears customs in the customer’s name, it is usually duty-free up to 150 USD. Above that, duty and VAT apply to the whole amount.
What is the difference between buying-agent and stock import?
A buying agent buys after each order and ships straight to the customer. A stock import brings goods in under your name to hold as stock; duty and import VAT apply regardless of value.
Which exchange rate should I use?
The yuan rate on your card or transfer. The preset value is just an example.