E-Commerce is a good opportunity for companies in Andorra if they are correctly structured, since Andorra is a country with great motivation for international e-commerce businesses. This is due to its tax advantages and a secure legal framework with multiple operational advantages for your company, difficult to overcome by any other country in Europe. The corporate tax is 10%, and with a VAT regime that has its maximum rate at 4.5%.
We are expert specialists advising in how to create this type of companies in Andorra, such as lead generation, affiliates, e-commerce, among others.
Andorra is a country that is very well located to serve all Europe, since it is located between France and Spain. Its inhabitants are multilingual, as they speak Spanish and Catalan, and very often French, and even Portuguese. The costs of social security are very reasonable, which favors hiring in case of fulfillment support needs in general, or in the call center.
Companies can use both postal services of France and Spain, since Andorra depends on any of them. Goods that enter Andorra must go through Customs before entering Europe, given that the Principality doesn’t belong to the European Union. Although this implies more costs in customs paperwork and transport, these expenses can be compensated greatly by the Andorran prosecutor’s office, depending on the VAT rate applied to the country of destination and the type of product, and also by the type of taxation in the Principality of Andorra.
Dropshipping is the solution to avoid costly fulfillment operations through European warehouses, or for import and export. Using the Andorran database for billing goods shipments to the customer, directly from the product located anywhere in the world, as in the traditional dropshipping model.
Certain platforms like Ebay or Shopify offer easy entry into the international trade business, but you have to take into account the relationships with the supplier, in reference to shipping costs and VAT.
Some of the products that can fit into the e-commerce model in Andorra may be specific niche products, such as alcoholic beverages, nutritional supplements or products that may need specific licensing and regulation. The specific regulations have to be fulfilled, because Andorra must comply with international regulations in all these specific products.
Andorra can use part of its e-commerce operations using Amazon’s fulfillment, even if there are certain restrictions or a small momentary complication.
The fulfillment through Amazon, is today the best option for most online vendors and the preferred option for an e-commerce operator.
Fulfillment refers to all the stages which includes the manufacture of the product, its storage or distribution, and until it reaches the final customer.
Its geographical position gives advantages when it comes to supplying the rest of Europe. In addition, there’s multiple advantages about hiring workers. And, of course, advantageous taxation.
The use of Andorra as a billing base for shipments of products from anywhere in the world to customers is the solution to reduce the high costs of fulfillment operations.
Boosts trade in niche products, such as alcoholic beverages and nutritional supplements among others.
Another alternative would be fulfillment through Amazon, an increasingly popular option among online sellers.
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