Cross-border e-commerce Amazon operating costs and logistics selection strategy
In the field of cross-border e-commerce, Amazon, as one of the world’s largest e-commerce platforms, its operating costs and logistics options have always been the focus of sellers.
Operating cost analysis
Staff salary
When operating an Amazon store, especially for a small team that is new to the industry, staff wages are an important expense. Taking a small team (about 3 to 5 people) that manages 5 to 10 stores as an example, the average basic salary per person is about 5,000 yuan/month, covering multiple functions such as product research and development, listing maintenance, CPC advertising, and logistics management.
Office space
In the early stage, considering cost control, an office space of 30 to 50 square meters is sufficient, and the total expenses including property, water and electricity are roughly 5,000 to 10,000 yuan per month.
Company maintenance
- Agency accounting: In order to comply with Amazon’s new regulations, company registration has become a necessary condition. Small-scale taxpayers or general taxpayers need to keep accounts and file tax returns. It is recommended to outsource it to professional institutions. The average annual cost is about 1,500 yuan.
- Brand registration: Brand registration is indispensable when entering overseas markets. For example, the registration fee in the US market is about 3,300 yuan, while in the EU it is between 8,000 and 10,000 yuan.
- EU VAT: Depending on the laws of the country where you are located, VAT registration fees vary significantly, ranging from approximately 1,000 to 10,000 yuan. After obtaining the VAT tax number, you need to complete the annual tax declaration on time.
Operational software
Efficient operations are inseparable from the support of various auxiliary tools. In addition to free office software such as Flomo and Wolai, paid tools such as Statista, ZonGURU, Oalur, Semrush, etc. are also commonly used.
Logistics selection considerations
The main logistics options faced by Amazon global store sellers include cross-border logistics companies, Amazon FBA, and overseas warehouses.
Cross-border logistics company
For start-up sellers who do not have their own companies or products, cross-border logistics companies provide convenient solutions. However, its service quality and cost control directly affect buyer experience and store performance.
Amazon FBA vs overseas warehouse
What they have in common is that they need to prepare goods in advance, have a complete warehouse management system, can shorten delivery time, provide return and exchange services, have a fixed monthly fee, and are equipped with customer service support. However, the specific choice depends on the product characteristics:
- Amazon FBA: Suitable for small and light goods, and can receive more traffic support; the disadvantage is that the cost is high, and it is suitable for sellers with a certain economic foundation.
- Overseas warehouse: It can save costs for large or special items; in addition, it also provides higher flexibility and service diversity, such as customized packaging, return processing, etc.
To sum up, whether it is the preparation of start-up funds or the selection of logistics solutions, Amazon sellers should make reasonable decisions based on their own conditions. At the same time, considering the importance of logistics to the success of e-commerce, choosing the right partner is particularly critical.