A product advertised at 4 € by a supplier outside the European Union almost never costs just 4 € by the time it reaches your stockroom. Comparing that price with a French wholesaler without including the other costs leads to overestimated margins.
Calculate the landed cost
Landed cost includes everything needed to make the product ready for sale: purchase price, international shipping, insurance, customs duties, freight forwarder or carrier fees, final delivery and compliance expenses.
The import VAT tax base may also include incidental costs such as commission, packaging, transport and insurance to the first place of destination, depending on the applicable rules.
Do not confuse VAT with a final expense
For a VAT-registered business in France, the reverse-charge mechanism allows import VAT to be reported and deducted simultaneously when deductible. VAT does not therefore necessarily have the same economic impact as customs duty, but it must be handled correctly.
Allocate fixed costs
An order may incur the same customs clearance fees whether it contains 50 or 500 units. Allocate these costs per unit or product family using a consistent method.
Account for breakages and delays
Fragile, liquid or heavy products may lead to greater losses. A delay of several weeks can also make a seasonal import pointless. The true cost should therefore include a reasonable allowance for incidents you have encountered.
Compare with local purchasing
A wholesaler such as Esotericæ may seem more expensive per unit than an overseas factory price, but it can eliminate some customs, compliance, MOQ, lead-time and administration costs. Always compare total landed costs and overall risk.
See also our guide to importing from outside the EU.
Official sources
French Customs — Import VAT · French Customs — Preparing for customs clearance