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Dropshipping in Andorra: a highly profitable business model

Dropshipping in Andorra: a highly profitable business model

What is dropshipping?

Thanks to the facilities it offers, dropshipping has without doubt become a very profitable internet business model. All you need to do is create an online shop to sell third-party products, without the need to store or buy them in advance. This translates into savings on stock and logistics that can be invested in the design, and positioning of your e-commerce or in the promotion of your products. This business model means that you simply act as the intermediary between the customer and the supplier.

Advantages of dropshipping

The presence of these types of shops on the internet has increased many times over because they offer real opportunities for growth and revenue:

You don’t need a large infrastructure: there’s no need to worry about buying products or the cost of maintaining a logistics service to receive, store and deliver your goods.

Creating an e-commerce site is affordable: there are quick and simple solutions for this type of service such as the Shopify platform, which allows you to create an online shop in just a few steps.

The market is huge: online commerce is growing every day. There are many users who prefer to buy from smaller, specialised websites that focus on a specific niche, rather than large sites such as Amazon or AliExpress. Users prefer to have direct contact with a shop where they can find the product they want in an easy and much faster way.

Taxes on dropshipping

As with any economic activity, once you have a fixed income that exceeds the national minimum wage, you will have to pay taxes and register as self-employed. The taxes you pay will include VAT, if the products you sell come from a European Union country, and income tax – the tax on profits.

Dropshipping in Andorra

Another great advantage of dropshipping is that you can manage your company from anywhere in the world. You can create your online shop and enjoy your income wherever you want. In this regard, Andorra offers highly beneficial tax advantages when creating a company. It has the lowest value-added tax on products and services in Europe at 4.5% (IGI), and you will only pay 10% tax on profits. In addition, the annual maintenance fees for a company are a maximum of 850 euros.

At Advantia Assessors, we will be happy to advise you on all the arrangements you need to make to launch your dropshipping business in Andorra.

Feel free to contact us for more information.