Did you know? The cost structure of running an Amazon cross-border e-commerce business is much more complicated than you might think! This is a realistic issue that every Taiwanese cross-border seller must face before opening a store. After all, in a global e-commerce platform, only with a thorough understanding of the cost components can you develop a precise selection and pricing strategy to ensure profit maximization.
Today I'm going to systematically analyze for all e-commerce entrepreneurs.Amazons open a storeThe complete cost structure of your business. Using the North American station as an example, your business will face the following five major cost items:
- Amazon North America Professional Sales Program: $39.99USD/month (fixed cost)
- Sales commission: fluctuates between 8%-15% depending on the category.
- First-trip transportation cost (from Taiwan to Amazon US warehouse) + US import duties and taxes
- Amazon Logistics (FBA) Fees
- Product costs, target margins and other operating expenses such as advertising
The real challenge is that, while site commissions and sales commissions are relatively fixed, it is the three variable costs of first-haul transportation, FBA fees and advertising that are at the core of cross-border brand owners' concerns.
There are four main modes of international logistics that you would never expect to find when it comes to first-haul transportation, and they vary greatly in terms of time and cost:
- International courier: fastest but most expensive
- Air transportation: faster, more expensive
- Air-sea transportation: speed and cost are in the middle of the pack
- Sea freight: slowest but least expensive
The most surprising thing is that many new sellers don't know how to choose the right transportation method for them. According to experience, goods within 200 kilograms can consider express or air freight; more than 3 cubic meters is recommended to use sea freight. The key is to combine your own sales plan and inventory management to make the best decision.
When it comes to advertising, many Amazon sellers are confused about their on-site advertising budget in the early stages of operation. In fact, it's hard to use a fixed number or ratio to measure good or bad advertising investment, but I can share some practical ideas:
- Understand the competition in the product category first and set clear objectives
- Determine whether you want to go for aggressive expansion or steady growth.
- Initial use of automated advertising, regular analysis of reports
- Convert high-performing keywords into manual ad placements
- Continuously optimize advertising strategies and remove ineffective keywords
In addition to these three core costs, don't forget to consider returns and product damage rates, which are often overlooked but can quietly eat into your profits!
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# Amazon Global Open Store # Cross-border E-commerce #FBA Logistics # Open Store Cost Analysis # Taiwan Sellers # E-commerce Entrepreneurship # North America Open Store # Cross-border Exporters # 2025 E-commerce Trends
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