Amazon vs Market Express Calculator

Compare total costs: Amazon FBA vs Market Express with Nevada LLC

See glossary for term definitions

Amazon Programs

Compare costs across FBA, Accelerator, Global Selling, AWD, and more

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eBay Marketplace

8 fee categories vs 2 — see the cost breakdown

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Shopify Platform

Platform + marketing costs — see the hidden expenses

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2025 Reciprocal Tariffs in Effect: New US tariffs have significantly changed import costs. Many FTA benefits (KORUS, etc.) are now overridden. Rates shown are the reciprocal tariff rate — actual duty is the higher of the HTSUS rate or this reciprocal rate. Verify with a licensed customs broker.
Understanding Import Costs:
• Tariff = Tax rate (%) set by law
• Duty = Actual amount ($) you pay = tariff rate × customs value
• MPF = Merchandise Processing Fee (0.3464%, min $31.67, max $614.35) — applies to ALL imports
• Ad Valorem = "According to value" — duty calculated as % of goods value

Your Business Details

$500,000per year
$100≈ 5,000 units/year

Section 301 tariffs; additional tariffs may apply

25%≈ $125,000 profit

Plus $800 minimum franchise tax

Break-Even Analysis

With China goods at 25% tariff, Market Express beats Amazon at approximately $0 annual GMV.

Amazon May Be Better at This Volume

$0 /year
Duty + MPF Savings
$0
Fee Savings
$0
Tax Savings
$0

US Tax Comparison

Estimated Annual Profit$0
Federal Tax (21% - both scenarios)$0
California State Tax (8.84%)$0
Nevada State Tax (0%)$0
State Tax Savings (Nevada)$0

Amazon FBA Path

Import Duty (25% × 100% value)$0
MPF (0.35% of value, capped)$0
Amazon Referral Fee (15%)$0
FBA Pick/Pack/Ship (~$4.75/unit)$0
FBA Storage Fees (est.)$0
Total Amazon Cost$0
Effective rate: 0.0%

Market Express Path

Import Duty (25% × 50% value)$0
MPF (0.35% of 50% value, capped)$0
Annual Membership$0
Fulfillment Fee (10% above $125K GMV)$0
Total Market Express Cost$0
Effective rate: 0.0%

Your Annual Membership Includes

Both foreign and domestic vendors receive identical services. The only difference is foreign vendors get US LLC formation included. Choose 1-year ($30,000) or 2-year commitment ($24,000/year).

Core Services (All Vendors)

Fulfillment Services

  • 3 EURO1 pallet positions
  • Pick, pack & ship fulfillment
  • $125K GMV included
  • Inventory management
  • Returns processing

Pooled Services

  • Enterprise shipping rates
  • UPS, FedEx, USPS discounts
  • Lower CC processing fees
  • Volume-based pricing

Support & Service

  • US-based fulfillment support
  • Real people 8AM-6PM PST
  • Onboarding assistance
  • Dedicated account manager

Protection & Insurance

  • Warehouse property insurance
  • Liability coverage
  • Goods in transit coverage
  • Loss/damage protection

Foreign Vendors

Additional services included

US Entity Formation (Included)

  • Nevada LLC formation & filing
  • EIN (Tax ID) registration
  • US business bank account setup
  • Registered agent service
  • Annual state filings & compliance

Duty Optimization

  • Transfer pricing structure
  • ~50% import duty reduction
  • Customs documentation
Annual Cost: $30,000/year (annual prepaid)
All core services + LLC formation + duty optimization
Or $2,800/month ($33,600/year) • 2-year commitment required

Domestic Vendors

Same great services

Domestic vendors receive all the same core services as foreign vendors:

  • 3 EURO1 pallet positions
  • Pick, pack & ship fulfillment
  • $125K GMV included
  • Enterprise shipping rates
  • Lower CC processing fees
  • US-based support
  • Insurance & protection
Note: LLC/EIN formation not needed — you already have a US entity.
Annual Cost: $30,000/year (annual prepaid)
Or $2,800/month ($33,600/year) • 2-year commitment required
Domestic vendors: $1,000 off first year

Optional Add-On Services (All Vendors)

Business Credit Establishment
$5,000
Build US business credit history
Additional Storage
$50/pallet/mo (Std) • $35/pallet/mo (Vol)
Beyond 3 EURO1 pallets included
Li-Ion Battery Handling
$5-100/pkg
Varies by battery size
US Softphone Service
$25-40/mo
Make/receive calls on US number
Priority Fulfillment
Custom
Same-day/next-day shipping
Lead Generation
Custom
US market lead generation

Tax Structure: Disregarded Entity vs C-Corp Election

Why This Matters: Your US LLC's tax election affects both your tax liability AND which services you can safely use without creating permanent establishment (PE) issues for your foreign parent company.

Disregarded Entity (Default)

By default, a single-member LLC is "disregarded" for tax purposes—the IRS looks through to the foreign parent. This means PE risk is higher.

Tax Implications:
  • • US LLC pays no separate tax
  • • Foreign parent reports US income
  • • If PE triggered: foreign parent pays US tax at up to 37%
  • • Form 5472 reporting required
PE Risk:
  • • HIGH — ME activities could be attributed to foreign parent
  • • Must limit services to storage/fulfillment only
  • • No dedicated sales teams allowed
  • • Customer service limited to fulfillment support
Best For:
  • • Vendors who only need fulfillment
  • • Countries with favorable US tax treaties
  • • Lower-margin businesses

C-Corp Election (Form 8832)

Electing C-Corp status makes the US LLC the taxpayer. The foreign parent is insulated from US tax liability beyond dividends.

Tax Implications:
  • • US LLC pays 21% federal corporate tax on profits
  • • Nevada: 0% state tax (vs CA 8.84%, NY 7.25%)
  • • Dividends to parent: 15% withholding (often 5-10% w/ treaty)
  • • Clear, predictable tax structure
PE Risk:
  • • LOW — US LLC is separate taxpayer
  • • All Market Express services available
  • • Can use dedicated sales teams
  • • Full customer service support
Best For:
  • • Vendors wanting enhanced services
  • • Higher-margin businesses
  • • Long-term US market commitment

Example: $100,000 Profit in US LLC

Disregarded Entity (if PE triggered)
US Business Profits:$100,000
US Tax (up to 37%):-$37,000
Net to Foreign Parent:$63,000
C-Corp Election
US LLC Profit:$100,000
Federal Tax (21%):-$21,000
Nevada Tax (0%):$0
Retained in LLC:$79,000
If distributed: Withholding (5-15%):-$3,950 to -$11,850
Net to Foreign Parent:$67,150 - $75,050

* Withholding rate depends on tax treaty with parent company's country. Many treaties reduce to 5-10%. Profits can also be retained in US LLC for reinvestment without immediate distribution.

Learn more about C-Corp Election |What is Permanent Establishment?

Amazon FBA vs Market Express: Tax Reality

Selling on Amazon FBA (No US Entity)

  • Amazon does NOT pay taxes for you. Amazon is a marketplace, not your employer.
  • Having FBA inventory in US warehouses creates tax nexus—you may already owe US taxes.
  • Many foreign sellers operate in a compliance gray area, risking back taxes and penalties.
  • Without a US entity, you cannot effectively use tax treaties or deduct US expenses.
  • If audited, you have no clean structure to defend.

Selling Through US Subsidiary (Market Express)

  • Your Nevada LLC is the taxpayer—clean separation from foreign parent.
  • Nevada = 0% state tax vs. California (8.84%), New York (7.25%).
  • Transfer pricing reduces customs value by ~50%, cutting import duties.
  • Proper books, tax filings, and audit trail for compliance.
  • Access to US banking, credit, and supplier terms.
Bottom Line: If you have significant US sales through Amazon FBA, you likely already have US tax obligations. A Nevada LLC provides a clear, compliant structure with the lowest state tax burden while enabling transfer pricing to reduce import duties by ~50%.

Why Nevada Over Other States?

Nevada Advantages

  • ✓ 0% corporate income tax
  • ✓ 0% franchise tax
  • ✓ No personal income tax
  • ✓ Strong privacy protections
  • ✓ Business-friendly courts

California Drawbacks

  • ✗ 8.84% corporate tax
  • ✗ $800 minimum franchise tax
  • ✗ Complex regulations
  • ✗ High cost of compliance

Delaware Drawbacks

  • ✗ 8.7% corporate tax
  • ✗ Franchise tax on shares/assets
  • ✗ Good for large corps, overkill for SMB
  • ✗ East Coast timezone

Disclaimer: These are estimates based on 2025 reciprocal tariff rates. Actual costs depend on your specific HTS codes, country of origin, and business structure. Tariff policy changes frequently — consult a licensed customs broker and tax professional for advice specific to your situation.

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