Does Companio Support Companies That Manage Physical Goods?
In general, we don’t support companies dealing, selling, buying, managing, exporting, or importing physical goods. We don't recommend to have an Estonian company if the goods, warehouses, or facilities of the company are kept outside of Estonia.
If you have an online shop following the dropshipping business model, then Companio supports your activity and you can start your business with us. What is a dropshipping business model?
If you have an online store that follows the dropshipping business model, then you can indeed open your company with us. Check out the requirements for dropshipping businesses here.
Let's see a couple of examples of activities that are considered dropshipping (and, thus, are allowed), and activities that are not considered dropshipping for Companio (and hence, are NOT allowed):
Your business runs an online shop selling watches.
The watches are stored by a Chinese provider in a Chinese warehouse.
A customer from Germany buys a watch (a physical good) from your online shop.
The customer pays 1000€ for the watch.
Your business instructs the Chinese provider to send the watch to the customer.
The provider ships the watch directly to the customer.
The provider charges your business 700€ for the product and shipping.
Your profit is 300€.
Important notes:
Your business has a logistic arrangement with the Chinese provider to ship the goods directly to the customer, with shipping costs charged to your business; or
Your business has an agreement with a shipping/logistics company that delivers the goods from the supplier to the customer; or
Your business uses Amazon FBA to store the goods in Amazon warehouses.
Your business runs an online shop selling watches.
Your business buys the watches and they are shipped to your house or warehouse in your country, either on demand or beforehand. This watch costs 700€.
A customer from Germany buys the watch (a physical good) from your online shop.
The customer pays 1000€ for the watch.
You or your business sends the watch via postal mail to the customer.
Your profit is 300€.
Important notes:
You or your business handles the purchase, collection, or retrieval of the watches, shipping them from the provider to your country.
You or your business sends the watches (directly or via a postal/shipping company) from your country to the customer’s address.
The shipment of the watch (either to you initially or to the customer later) is managed by you or your business, involving your company in a physical sale in a country other than Estonia.
If you have an online shop following the dropshipping business model, then Companio supports your activity and you can start your business with us. What is a dropshipping business model?
If you have an online store that follows the dropshipping business model, then you can indeed open your company with us. Check out the requirements for dropshipping businesses here.
Let's see a couple of examples of activities that are considered dropshipping (and, thus, are allowed), and activities that are not considered dropshipping for Companio (and hence, are NOT allowed):
Example of a dropshipping business model that's supported by Companio
Your business runs an online shop selling watches.
The watches are stored by a Chinese provider in a Chinese warehouse.
A customer from Germany buys a watch (a physical good) from your online shop.
The customer pays 1000€ for the watch.
Your business instructs the Chinese provider to send the watch to the customer.
The provider ships the watch directly to the customer.
The provider charges your business 700€ for the product and shipping.
Your profit is 300€.
Important notes:
Your business has a logistic arrangement with the Chinese provider to ship the goods directly to the customer, with shipping costs charged to your business; or
Your business has an agreement with a shipping/logistics company that delivers the goods from the supplier to the customer; or
Your business uses Amazon FBA to store the goods in Amazon warehouses.
Example of a business model that is NOT supported by Companio
Your business runs an online shop selling watches.
Your business buys the watches and they are shipped to your house or warehouse in your country, either on demand or beforehand. This watch costs 700€.
A customer from Germany buys the watch (a physical good) from your online shop.
The customer pays 1000€ for the watch.
You or your business sends the watch via postal mail to the customer.
Your profit is 300€.
Important notes:
You or your business handles the purchase, collection, or retrieval of the watches, shipping them from the provider to your country.
You or your business sends the watches (directly or via a postal/shipping company) from your country to the customer’s address.
The shipment of the watch (either to you initially or to the customer later) is managed by you or your business, involving your company in a physical sale in a country other than Estonia.
Updated on: 16/07/2024
Thank you!