Put every penny on the edge ! I believe that every Amazon seller wants to do this, but the operation of Amazon is a process of spending money. The cost of each link is high, and it may be a little distracted.
When you are ready to open a store on Amazon, you need to consider many aspects and make a detailed store opening plan. The most important question is: "How to minimize the cost?"
Around this problem, Xiao B starts from the following aspects to analyze the way to save money.
When opening a store on Amazon, the selection of categories is very important. It is necessary to consider the color, volume, and whether multiple SKUs of the product are operated. The purchase cost of the product will be the main cost of opening a store. In order to save costs, it is recommended to choose products that are just needed.
You can save money in three ways:
●Sales commission, choose the category with lower commission.
The amount of commission charged on Amazon varies by product, with most products ranging from 15% to 15% , depending on the product category, such as 8%-15% for mother and baby products; 6% for personal computers ; furniture and lighting: 15% ; pet supplies : 15% ; 8 % around the camera . Choosing a category with a lower commission means reducing the sales commission you pay to Amazon , so think carefully about your product category .
●Commodity volume, small and light commodities have logistical advantages.
The Amazon Small and Light program has been launched in the United States, Europe, and Japan. Fulfillment fees per item are generally lower than standard FBA fulfillment fees. In the U.S., the FBA Small and Light program has a weight limit of 3 pounds , a price limit of $ 8 , and a size limit of 18 x 14 x 8 inches .
●Procurement of products, reducing the cost and ordering in small batches.
Whether a product needs to have multiple SKUs or a single SKU is related to the formulation and execution of the entire operation strategy. In order to control costs, reduce risks, avoid multiple SKUs , and avoid blindly optimistic large-scale purchases in the early stage of new products, it is easy to accumulate inventory. Don't be afraid of losing face. During the procurement process, you must communicate with suppliers tirelessly. Even if the price is reduced by a dime, your product will have a market advantage of a dime more than competing products.
For the logistics from domestic to overseas, the shipping time is slow but the price is cheap, and the air transportation is fast but the cost is high. The combination of multiple logistics channels can save logistics costs.
1. High-value and large-scale products are suitable for shipping. It is best to sign a contract with a shipping company. In addition, you can establish your own overseas warehouse to better control the rhythm. Cooperation with local express companies can further reduce logistics costs.
2. Light-weight and small-volume products can be used in combination with air and sea transportation. Multiple logistics providers compare prices, deliver multiple batches, keep up with the operation plan, avoid the rising cost of stocking during peak periods, and control logistics costs.
3. Warehousing costs
Amazon FBA fees include storage fees, order processing fees, sorting and packaging fees, weighing processing fees and some other paid services. Reducing FBA fees can also save a lot of costs.
1. Separate and combine positions
Products will be processed in separate warehouses by Amazon by default, which can better ensure the safety of products and improve the reasonable utilization of warehouses . Separating positions is cumbersome and will charge an additional head-way fee , but it can bring traffic support and seize the weight. Closing warehouses can save time and logistics costs, and is more convenient for packaging and delivery, but it will lose Amazon's pit .
2. Optimize packaging
The packaging size grade of the product determines the different fees for FBA . Sellers should actively optimize packaging to make products fit into smaller packages and save costs.
Dark money saving tips:
Amazon product data is obtained by comprehensive consideration of the data filled in by the seller's back office and the actual measurement results, and then charged accordingly. When the FBA is put into the warehouse for the first time , the seller needs to fill in the product size and weight in the background, which can be slightly smaller than the actual value. Amazon will charge according to the data filled in by the seller, not necessarily the actual measurement result.
4. Service fee
In the process of being an Amazon store, sellers need to use various services in each operation link, and every stroke is a cost.
Amazon's collection involves the security of funds. There are many third-party collection tools on the market. When there are many choices, you should consider the three aspects of security, service and rates to choose the appropriate collection tool. It is recommended to deploy multiple collection companies to diversify risks and appropriately reduce service fees, such as exchange losses, which can save a lot of money in a year.
Not all sellers do reviews, but almost all Amazon products do. The cost of the evaluation includes principal and commission (service fee), which is a considerable cost, but it is a shortcut for launching new products, and even old products and popular models can be used with evaluation. There are many evaluation platforms on the market. It is very important to choose a professional, reliable and good service platform, and some platforms will launch commission promotions for Amazon's big events, which can also save a lot of costs.
5. Advertising costs
Amazon CPC advertising is the first way for sellers to get traffic by paying. The creation of a new ad must first solve a problem: how to set the Bid bid? Xiao B provides you with 3 methods, I hope it will help you.
1. Pick up leaks at low prices
According to the unit price of the product, Bid can be set like this:
The unit price of the product is 0-20 US dollars, and the bid setting is 0.1-0.3 US dollars;
The unit price of the product is 20-60 US dollars, and the bid setting is 0.3-0.6 US dollars;
The unit price of the product is more than 60 US dollars, and the BID setting is 0.6-1.2 US dollars;
Start with a lower bid and gradually adjust your CPC.
2. Estimate high prices
Higher bids can quickly collect click history and adjust bids gradually, but this method is expensive and can burn through profits accidentally. In order not to lose money, scientific estimation is required.
Here is a calculation formula : initial bid = (target ACOS * product selling price * product conversion rate) * 1.5
The amount of target ACOS depends on your upper limit ACOS . If the upper limit ACOS is 25% , the target ACOS must be lower than 25% , otherwise advertising is doomed to loss.
The bid you set is the maximum limit. Amazon’s actual bid will be lower than the bid. It is recommended to increase the bid by 50% , and the chance of getting on the home page is higher, which is also the most suitable bid.
3. Keyword filter
Operators need to regularly screen keywords. They can use board matching to set appropriate BIDs . After a period of running words, they can select high-quality keywords for combination, and finally leave keywords with high conversion rate and money .
The above three Amazon CPC gameplays can be used together. The new product has no conversion rate when it is launched. You can refer to the conversion rate of your peers. After the product has been running for a period of time, you can get the conversion rate of your own product and then make adjustments. The data is dead, but people are Live, be sure to continue to optimize and adjust your ads.
Amazon sellers have a long way to start their own business. The ultimate goal is to make money. However, there are many fixed and hidden costs that need to be spent on the way forward. As an Amazon seller, you need to know how to minimize costs. Xiao B provides 5 ways to save money for seller friends, because money not only needs to be earned but also needs to be saved. Save a little or 10 % in each ring. % profit, why not!