Pricing model for e-commerce businesses17. September 2020
Accounting processes for online sellers of physical goods can vary, depending on the exact nature of their business model and processes these sellers have in place. For such businesses, we offer our services, based on a “base fee + additional services” model.
NB! Please note that Estonian VAT of 20% will be added to all fees quoted below.
The Base Fee of €99 per month covers the following accounting services.
- Booking up to 25 monthly purchase invoices/receipts
- Booking up to 1,500 sales invoices
- One Amazon marketplace or other sales channel
- Up to 2 bank accounts OR payment gateways (e.g. TransferWise + Stripe)
- Up to 3 account+currency sets (e.g. Tranferwise EUR and TransferWise USD are 2 separate sets)
Additional services and fees
Additional fees are charged only in case they specifically apply to your business model. The additional fee rates shall be fixed in our contract with your company. In case your business grows or your business model changes, please let us know, so we can adjust the additional fees if needed.
Additional fees for e-commerce companies (i.e. companies selling physical goods online, using various e-commerce portals such as amazon.com, Shopify, Etsy, etc) are given in the table below
Table #1 – additional accounting fees for e-commerce businesses
|Service||Details||Additional charge per month|
|Additional Amazon marketplaces|
|As your business grows, you may wish to start selling your goods on more than one marketplace. Amazon provides data separately about each marketplace and also our accounting services separate the different marketplaces|
Extra charge applies in case you use several Amazon marketplaces (such as amazon.de, amazon.co.uk, amazon.it, etc).
|€45 per each additional marketplace|
|Additional sales channels||A “channel” can be an e-commerce platform such as Shopify or your own website or any other additional tool you use to sell your product|
Extra charge applies if you sell your products in different channels.
|€45 per each additional sales channel|
|More than 25 purchase invoices per month||In addition to invoices we also accept receipts (e.g. hard copy paper slips, issued by the seller’s or service provider’s cash register).||€25 In case your company has in total 26-50 purchase invoices per month|
Additional €25 for each additional 25 invoices (starting from the 1st invoice that exceeds the limit)
Note for dropshippers: in case you are buying your goods from one or few sellers, and these sellers can issue a combined invoice for all your purchases of a month, such invoice shall be considered as one invoice, regardless of how many items are listed on the invoice.
|More than 1,500 sales transactions per month||In case of Amazon, you need to give us access to your Amazon Seller’s account, so we can extract all the relevant data.|
In case you do not give us access directly to your sales software (such as your Amazon or Shopify account), you need to provide us your sales data using this template.
|€25 In case your company has in total 1,501-2,000 transactions per month|
Additional €25 for each additional 500 transactions (starting from the 1st transaction that exceeds the limit)
|More than 2 bank accounts (or payment service provider accounts)|
|€25 for each additional account|
|More than 3 currency+bank account sets.||For example:|
1. Transferwise account in USD
2. TransferWise account in EUR
3. Transferwise account in GBP
4. Payoneer account in USD
5. Payoneer account in EUR
Equals total 5 currencies
|€25 for each additional currency/account set|
Keeping exact inventory of your goods can be an important element of managing an e-commerce business. You may need detailed information about how many items of each Stock Keeping Unit (SKU) you currently have available, in which (Amazon) warehouse these units are located and what is their value.
Amazon itself does not provide such information for you in sufficient detail. Many e-commerce businesses therefore use additional software applications that can be linked up with their e-commerce sites, such as Amazon, Shopify, Etsy and/or their own various web-shops. This way an integrated and wholesome information can be obtained that will support the strategic planning of your business.
E-Residency Hub does not provide inventory keeping services. We recommend the following applications, which our clients often use. These applications provide information about your company’s inventory:
We recommend that you check out the possibilities of these platforms. As your accounting service provider, we only need input from you about the year-end value of your inventory. In case you require us to include your inventory value in your company’s balance sheet on a given day or a profit & loss statement for a given period, you must give us the inventory value at these specific dates.
A company sells their products on amazon.de and amazon.com marketplaces
- They have 1,530 sales transactions and invoices per month
- They have 30 purchase invoices
- 7 different fees that they pay to Amazon for promotions, handling, packaging, etc
- 23 purchase invoices from producers of the product
- 3 accounts: TransferWise, PayPal and Payoneer
- 4 currencies in total:
- TransferWise account in USD
- TransferWise account in €
- PayPal account in USD
- Payoneer account in GBP
The monthly accounting costs for such a company would be the following
|Base fee for e-commerce||€99|
|+1 extra Amazon marketplace||€45|
|1,501-2,000 sales transactions||€25|
|26-50 purchase invoices||€25|
|+1 additional bank account||€25|
|+1 additional currency||€25|
|Total monthly cost for services||€244|
|Estonian VAT of 20%||€48.80|