Why does SPACEGOATS need to buy the products?

SPACEGOATS sells your products through its own Amazon accounts.

In order to legally and tax-compliantly sell products across multiple markets (EU, UK, USA, etc.), SPACEGOATS must own the goods. This allows SPACEGOATS to act as the seller, handle VAT registrations, EPR, packaging licenses, and manage all Amazon-related operations.

In short:

SPACEGOATS buys the goods from the vendor and sells them under the vendor’s brand to end customers on Amazon.

The vendor receives an invoice for the purchase price and has no operational obligations on Amazon’s side.

How is the purchase price calculated?

There are two ways SPACEGOATS determines the purchase price:

1. Backward Calculation (from retail price to purchase price)

Starting from the RRP (recommended retail price) or the target Amazon sales price, SPACEGOATS deducts all relevant Amazon- and logistics-related costs step by step to determine the net purchase price.

This follows the same logic as the Amazon FBA Calculator:

Example Calculation:

RRP / Amazon Sales Price
– Amazon Fees (Referral + FBA)
– VAT (country-specific)
– Storage Costs (FBA)
– Inbound Shipment Costs
– PPC costs (TACoS)
– SPACEGOATS Margin
– Risk Margin (e.g., for returns, price fluctuations)
= Purchase Price for the Vendor

This approach is used when SPACEGOATS defines the price strategy starting from the target retail price to ensure the product remains profitable and competitive on Amazon.

2. Forward Calculation (from wholesale to retail price)

Alternatively, the vendor provides a wholesale price, and SPACEGOATS calculates all costs and margins on top of it to reach the final Amazon retail price.

The resulting price is then reviewed to check if it’s market-competitive.

If it’s not, SPACEGOATS collaborates with the vendor to adjust packaging, logistics, or pricing to reach a viable market price.