1. Procurement cost
For brand FBA sellers, because they need to prepare goods in advance to FBA overseas warehouses, the procurement cost of products accounts for the vast majority of business funds, and the procurement costs will also involve new product mold opening fees, bulk procurement fees and product certification fees. Mold opening fees are R&D expenses. For standard small products, the cost is generally 20,000 to 50,000 yuan, and the unit price is 5 to 30 yuan. The later batch purchases are divided into 3 batches according to the conventional FBA test process. The first batch: 150 to 200 pieces; the second batch: 500 to 1,000 pieces; the third batch: more than 1,000 pieces. Category certification includes CE, ROHS, CPSC, etc., which depends on the specific product and platform requirements.
The above can roughly estimate the investment amount of the first batch of products. The purchase plan for testing and bulk goods should also refer to the actual IPI inventory capacity rules of the seller’s store.
2. Warehousing and logistics
1) FBA first leg
Depending on the target market, there are three conventional transportation options, namely air, sea and land. Among them, air freight is 57 yuan/kg, and it takes 7 days to enter the warehouse; sea freight is 13 yuan/kg, and it takes 35-45 days to enter the warehouse; land transportation (dedicated truck transportation) is 19 yuan/kg, and it takes 15 days to enter the warehouse.
The above data is for your reference only. For the actual charges and timeliness, you can consult your freight forwarder.
2) Local delivery
After the product enters the warehouse, Amazon will be solely responsible for delivery and after-sales. Generally, the price of FBA delivery is higher than 3 US dollars, and the delivery time is 1-3 days. Compared with domestic self-delivery operations, FBA has obvious timeliness advantages, which is also one of the reasons why local delivery is converted to FBA.