The Amazon platform is a platform that many domestic sellers are flocking to. Every year, many new sellers enter Amazon and many sellers exit Amazon in the cross-border torrent. You enter Amazon to make money, you quit because you don’t make money. The platform changes to different sellers. If you want to make money on Amazon for a long time, then Amazon operations must increase revenue and reduce expenditure. Today we will talk about how to increase revenue and reduce expenditure in Amazon operations.
First, regarding store rent.
There is no way to save on the cost of shop rental by doing professional manicure. Because the store occupies Amazon’s resources, it must pay a certain amount of rent. Amazon’s fees vary from site to site. You can also register as an individual seller, which can save some costs but the resources that individual sellers can use will be correspondingly fewer. Please consider carefully.
Second, the purchase cost of goods.
When selecting products, you need to do research. Products with market prospects are the focus of your attention. Some products need to purchase samples first, and some samples cannot be returned. Dear sellers, please remember that this is also part of the cost. When you decide to sell a certain product, you need to negotiate the purchase price with the manufacturer and lower the purchase price of the product as much as possible.
Third, pay attention to the first-way freight.
When Amazon sends FBA, there will be a first-leg shipping fee. You can choose between express delivery, dedicated line and sea shipping. This part should be decided based on the product itself and the logistics timeliness you want. This part is also a cost. If the products you sell are light and small and the profit is acceptable, you can choose express delivery or dedicated line. If the product you are selling is bulky, shipping by sea is the best way.
Fourth, Amazon’s commission.
Amazon charges a certain percentage of commission for products sold in each category. This cost must also be taken into account when calculating the selling price.
Fifth, FBA warehouse processing fee.
FBA provides convenience to international sellers, and the fees are reasonable. Amazon charges different fees for products of different sizes and weights, and sellers must take this factor into consideration.
Sixth, the cost of advertising.
If you want high store traffic, it is not enough to rely solely on natural traffic. Then you have to place ads. Advertising will inevitably incur costs. Different types of products compete differently, and the advertising fees are also different. You should also consider the cost of advertising when selecting products. Advertising techniques are also important, as they will affect the level of advertising costs. Only by continuously optimizing product listings and increasing the conversion rate of products can we save costs. If the listing conversion rate is high, the cost of advertising will be relatively low.
It is a science to do a good job in increasing revenue and reducing expenditure in Amazon operations. In addition to the points mentioned above, there are also various other expenses such as evaluation fees, after-sales processing fees, and so on. Therefore, to run a store well, one must understand finance very well. Only with healthy cash flow can the store continue to operate.