Opening a store on Amazon's cross-border e-commerce platform is a type of investment. If you want to do cross-border e-commerce, you need to understand the cost first. Generally speaking, the cost of opening a store on the Amazon platform includes platform cost, product cost, brand cost, advertising cost, and logistics cost. Among them, the platform cost, product cost, and logistics cost are the inevitable expenses of the seller, and the advertising cost and brand cost are the costs that the seller chooses according to their own situation.
The platform cost is the cost of opening a store on Amazon. Amazon does not require third-party sellers to pay a deposit, but only requires sellers to pay monthly store rent and product commissions. The general rent for opening a full site on Amazon is $39.9 per month, and the product commission rate is 8%-15%. The commissions for different categories of products are different. In addition, the cost of the personal seller plan and the professional seller plan are different. If the seller has the idea of long-term cross-border e-commerce, it is recommended that the seller choose the professional seller plan to save costs.
The product cost is the cost for the seller to get the goods from the supplier. When choosing a supplier, the seller needs to comprehensively compare the supplier's products and prices, and choose products with high quality and low price. When choosing products, sellers should choose some products without patent trademarks to avoid infringement, and the cost of products is related to potential profits.
Logistics cost is a necessary cost for sellers. E-commerce is inseparable from logistics, especially cross-border e-commerce, which has long distances and higher costs. Among the necessary expenses, logistics is a large part of the expenses. If the seller chooses to do Amazon FBA, it involves the first-way delivery fee, storage fee and order removal fee. If the seller does self-delivery, the selected shipping method is different, and the cost is also different.
In addition to the above three necessary costs, there are also two non-essential costs, which sellers can choose according to their own circumstances.
Brand cost is an expense for sellers who have established their brand on Amazon. It takes a certain amount of time to establish your own brand and apply for brand registration on Amazon. Sellers can decide whether to register the brand according to the situation.
Advertising costs are the expenses for sellers to operate stores. Advertising can quickly bring traffic and conversions to sellers and increase store sales. Generally, sellers who do Amazon's no-source model do not need this expenditure, and only need natural traffic to increase sales. For sellers who have established a brand, ad spend increases the competitiveness of the brand.
After understanding the cost, the seller can choose the operation method that suits him in his own situation.