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Do you know how much it costs to operate on behalf of Amazon?

07/18/2022
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Do you know how much it costs to operate on behalf of Amazon?

As the head platform of cross-border e-commerce, Amazon has been well-known by the Chinese in recent years. Its mature and stable platform traffic, huge profit growth index, and long-term sustainable returns all make domestic sellers eager to move in and want to settle in as soon as possible. Amazon does cross-border e-commerce.

But last year's "banning tide" of Chinese sellers undoubtedly dampened the enthusiasm of sellers to go overseas to a certain extent. In fact, looking at the essence through the phenomenon, this shows that the Amazon platform is moving towards another mature stage.

The tightening of platform rules is by no means an isolated case. Taking the previous crackdown on Taobao in China as an example, the era of Taobao brands is ushered in after a painful recollection. Cross-border going overseas still has dividends, and it is a big track for the continuity of e-commerce. Sellers should focus on long-term value dividends and become more professional and mature. In the era where the leftover is king, sellers should not regret stopping before they enter the market.

At present, Amazon's operation mode mainly includes self-operation and agency operation. What is the essential difference between the two? This article will make the following analysis from the dimensions of time, personnel, cost, and risk.

1. Time

Immediately put into operation is what every seller is eager to do, but the market environment is changing rapidly. Taking advantage of the bonus period, grasping every minute and every second is the key to grasping wealth. In terms of time selection, it takes at least 4-6 months to build a self-built team. On the other hand, the agency operation has an advantage in terms of time, because it can use the existing perfect team equipment and rich practical experience of the agency operation company to help sellers quickly do cross-border e-commerce business, and save the time for team formation and running-in period in the middle. , and the seller can also effectively reduce the cost of trial and error time. Opportunity equals opportunity, we recommend you to "check in" quickly and comfortably.

2. Personnel

In terms of talent matching, self-operation requires a self-built team, and the existing mature operation team is applied on behalf of the operation. The scarcity of cross-border e-commerce talents in the market has limited the stability of the recruited team. It is difficult to build, retain people, and perform performance appraisal. These problems are very difficult for self-operated sellers. In the early stage of store building, the cost of self-operated team management is much higher than the cost of agency operation, which has become the main reason why many sellers seek help from agency operation companies.

3. Cost

In terms of operating cost accounting, the self-built team needs to pay various expenses such as computers, office space, decoration, water and electricity, wages, etc., at least about 30,000 yuan per month. The seller who chooses the operating company only needs to pay the basic service fee, and later adopts the method of charging points for sales, that is, the method of charging commissions when the store makes sales profits.

4. Risk

Self-built teams need to bear investment risks and team professional risks. If a small team wants to operate, operators are indispensable. If they build their own team, the seller will face the impact of the loss of personnel during the operation of the store. Compared with the self-built team, the professional operation team is more stable and mature, with higher team collaboration ability and efficiency, and less risk.

To sum up, the advantages of agency operation compared to self-operation are obvious. Sellers can complete basic store operations by finding a reliable and professional operating company. How to evaluate it? It is recommended to consider the following points:

1. It is necessary to conduct an on-site inspection of the operation team, the scale of the company, the proportion of operation personnel, the company background and word-of-mouth investigation, etc.

2. In the process of cooperating with the agency operation, select the operation team and personnel with high professional level, maintain effective communication, and encourage compatibility. At the same time, the operating company is required to do a good job in daily data statistics, cost control and budget, and profit margin accounting.

3. Discuss with peer store data and fee commission method, and whether the operation plan is feasible.

4. Contract review, whether the contract services and terms are detailed, to avoid subsequent disputes.

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