Our ultimate concern when operating a store must be profits. Only with profits can we have a sustainable living space. Only by clarifying your own operating costs can you estimate an appropriate sales price and achieve your profit target.
Store operations are generally divided into two situations, and different costs must be considered for different situations.
(1) Run the store part-time by yourself. In addition to the purchase cost of goods, we also need to consider express delivery costs, packaging costs, return costs, promotion costs, exchange rate losses, and our own time costs.
(2) If we operate the store as a company, we need to hire employees to operate it, and we must also consider hidden costs, including tax costs, labor costs, site costs, water and electricity costs, depreciation fees, etc.
As for tax costs, some regions will provide preferential subsidies for cross-border e-commerce companies. We can consult the local responsible departments to learn about relevant policies, such as the Investment Promotion Bureau and the Commerce Bureau. Regarding labor costs, for non-core positions, we can recruit part-time workers. Compared with recruiting regular employees, we can save five insurances, one housing fund and basic salary. Regarding site costs, water and electricity costs, settling in a school incubation base or a local incubation industrial park will save some costs.