I had no idea that the cost structure of an Amazon sale was so complex! As a cross-border e-commerce seller, have you ever been troubled by how to accurately calculate the profit of your products? Today's article will unveil the mystery of costing for you, and help you master every penny of Amazon sales.
In the previous article, "Newbie Sellers Must See Guide to Starting a Store", we already have a general understanding of the basic cost items of opening an Amazon store. This article will go one step further and analyze the cost details from manufacturing to selling on the shelves, helping you to grasp the profit margins more accurately.
What I'm about to say may change your perception. When many Taiwanese manufacturers transformed into Amazon, the biggest misunderstanding was that they used the traditional OEM mentality to calculate costs. However, the cost structure of operating a brand is completely different from that of pure manufacturing! In addition to the manufacturing cost of the product itself, you also need to take into account the costs of marketing, logistics, platform commissions, and so on.
Did you know. The Amazon Pro Sales program charges $39.99 per month, while sales commissions fall between 8-20% depending on the category. Logistics costs are divided into two major parts: the first leg (from the factory to the Amazon warehouse) and the last leg (from the Amazon warehouse to the consumer). Not to mention advertising costs, return and exchange costs, etc. need to be taken into account.
The strong never confuse facts and opinions, while the weak are often confused about the true relationship between cost and profit. In order to help Taiwanese sellers to calculate accurately, the official Amazon has developed an Excel calculation tool, which can automatically calculate the detailed cost structure and percentage by simply inputting a few basic information.
This tool not only helps you evaluate the cost difference between FBA and self-delivery, but also helps you develop a more reasonable pricing strategy. Want to know how to use this powerful tool correctly? I'm going to show you step-by-step how to fill in all the information, from product packaging information, product pricing costs, to Amazon FBA fees, advertising budgets, every aspect should not be ignored.
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# Amazon Seller # Cross-border E-commerce # Cost Analysis # Profit Calculation # Taiwan Seller # E-commerce Entrepreneur #FBA Logistics # Brand Operator
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