The Amazon e-commerce platform is like a blue ocean, with a large number of new sellers every day, containing endless business opportunities. However, how to stand out from many sellers and become a seller with unique competitive advantages, first of all, it is necessary to clearly understand that the platform cost is one of the keys to success.
1. Unveiling the veil of Amazon store opening costs.
The costs of opening an Amazon store mainly include: monthly subscription fees, sales commissions, product costs, logistics costs and other potential costs.
Amazon’s sales plans are divided into professional plans and personal plans. The professional plan pays a fixed subscription fee every month, while the personal plan charges a fee based on each sold item. The costs of the two constitute the basic operating costs of the Amazon platform, but the specific amount varies depending on the sales area and product type.
The sales commission is part of the cost extracted by the Amazon platform from each transaction. The percentage of the sales commission usually varies depending on the type of product, but it is one of the important sources of income to support the stable operation of the platform.
Product cost, that is, the cost of producing goods in the supply chain, is also one of the key costs of entering Amazon. This covers possible costs such as raw material procurement, production and processing, and packaging. The production costs of different commodities vary according to their types, and the proportion of their cost structure depends on the product range.
Logistics costs are the costs of delivering goods from the supply chain to Amazon warehouses, including transportation, warehousing and other links. It accounts for a relatively high proportion of the entire cost system and is an important part of Amazon’s e-commerce operations that cannot be ignored. Different logistics models and supply chain strategies will have an impact on this cost.
In addition to the above costs, there are a series of potential costs to consider. Advertising, the selection of third-party service providers and participation in relevant training courses may incur additional costs. These costs will directly or indirectly affect the seller’s operating strategy and profit model.
Second, successfully invest in Amazon and accurately calculate costs.
For novice sellers, entering the Amazon platform requires a detailed understanding and accurate calculation of these costs. Only when the cost structure is clearly understood and incorporated into the operating plan can better formulate strategies and improve competitiveness.
The Amazon e-commerce platform has brought a vast market for sellers, but it is not smooth sailing to stand out in this market. Accurately understanding the costs will help sellers overcome difficulties in competition and achieve stable and sustainable operations.