Sellers who open a store on the Amazon platform need to operate the store, and there will be various expenses during the operation process. So what are the main expenses for operating the Amazon platform? This will be introduced in detail below.
1. Platform usage fees. The Amazon platform generally charges sellers certain platform fees, which mainly include registration fees, monthly fees, handling fees, and storage fees. There will be certain differences in platform fees between different Amazon sites. The specific platform fees are mainly as follows:
(1) Monthly service fee. The monthly service fee on the Amazon platform is generally US$39.9 per month.
(2) Commission fees. The commission fees for different Amazon sites and different products are also different. If the seller is in the United States, the general sales commission for mobile phone equipment and other products is 17%. Under normal circumstances, the minimum sales commission is US$0.3 per item.
(3) Withdrawal fees. The Amazon platform needs to pay a certain fee when withdrawing cash. The rate mainly depends on different payment companies. The withdrawal rate on the Amazon platform may be 0.3%, and the rate for withdrawing money to China is 1.2%. At the same time, some platforms have restrictions on the amount of cash withdrawals.
2. Warehousing costs. Storage fees are one of the main fees for Amazon platform operations. Storage fees are mainly charged based on the average daily volume of the seller’s inventory. The volume is mainly calculated based on the size and weight of the goods.
3. Advertising promotion fees. Advertising costs are the main expense for sellers in operations. Generally, factors such as the promotion intensity of on-site advertising and whether the products are popular need to be considered.
4. Logistics costs. Logistics costs mainly refer to the transportation costs of products from the production country to the destination country, mainly including domestic transportation fees, cross-border transportation fees, etc. Amazon’s logistics mainly includes FBM and FBA. Generally speaking, FBM costs are relatively low, there is no need to stock up on goods, and the flexibility is high.
The above content has given a detailed introduction to the costs of operating the Amazon platform. Sellers need to pay attention when operating. Some costs are indispensable, but some costs can be appropriately saved. For example, logistics costs, sellers can carefully understand various logistics methods and choose the appropriate logistics method, which can effectively save operating costs.