Attention Taiwan cross-border sellers! Do you want to open a store on Amazon.com and make profits in the long run, but you don't know how to judge the effectiveness of your business? Many e-commerce entrepreneurs see a steady stream of orders but still lose money, what is the truth?
The seemingly simple figure of gross profit hides the secret of the sustainability of your business model! In this article, we will analyze the 6 key indicators on the income statement, so that you can get a full picture of your business.
First of all, let's get to know the income statement, a financial statement that records all the revenues and expenditures over a specific period of time. By comparing the profit and loss statements of different periods, you can even see the growth trend of your company, which is especially important for cross-border e-commerce sellers.
The most eye-opening thing is that many sellers only focus on operating income, but ignore the more important operating margin! Gross profit (revenue minus direct costs) is the real indicator to determine the market value of the product. The higher the gross profit margin, the stronger the competitiveness of your products, the more secure the long-term operation.
You know what? It's in theAmazons open a storeWhat items are included in the operating costs? Let's take North America as an example:
- Setup Fee: $0.99 per item for Personal Plan or $39.99 per month fixed for Professional Plan
- Sales commission: 8-15% depending on product category
- Amazon Logistics Fee: Includes warehouse fee, delivery fee, etc.
- Operating expenses: personnel, packaging, advertising, etc.
For cross-border brands, it is important to grasp the gross profit formula: (operating income - operating costs) / operating income × 100% = gross profit margin. This figure directly reflects whether your product has enough profit margin.
Do you want your gross profit to grow steadily? In addition to regularly reviewing your profit and loss statement, choosing a reliable platform such as Amazon Amazon Global Store is even more crucial. Currently, it has opened 14 overseas sites and over 400 operation centers in Taiwan, and provides free operation tools, tax calculation and official logistics services to help you precisely control costs and improve profitability.
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# Amazon Global Store # Cross-border E-commerce # Operating Gross Profit # Profit and Loss Account # E-commerce Entrepreneurship # Taiwan Seller # Financial Management # Cross-border Branding # E-commerce Profit # 2025 Financial Planning