Have you noticed? More and more Taiwanese cross-border sellers are joining Amazon's global store, but very few of them can really grasp the cost structure accurately. How to shift from OEM mentality to brand management? How to accurately calculate the costs? This article will provide you with all the answers.
In the previous article, "A must-see guide to calculating the cost of setting up a store for new sellers", we've already had a general overview of theAmazons open a storeWe will analyze the basic cost items of your product. Next, we'll take a closer look at the complete cost structure from manufacturing to sales to help you accurately assess your product's profitability.
Can you believe it? Many companies that were very successful in the traditional manufacturing industry have frequently stepped on the wrong foot when they transformed into Amazon. The biggest problem is that they used the traditional OEM mentality to calculate costs, ignoring the complexity of branding. The shift in mindset from factory to brand means a complete reorganization of the cost structure.
Common costs of selling on Amazon include: production costs (product manufacturing, purchasing), logistics costs (sea/air freight, warehousing, returns), marketing costs (advertising, promotions), and other costs (sales commissions, cross-border flow fees, monthly fees for sales programs). Each of these has a direct impact on your bottom line.
For example, the Amazon Pro Sales program charges $39.99 per month, while sales commissions fall between 8-20% depending on the category. Logistics costs are further divided into two major components: the first leg (from the factory to the Amazon warehouse) and the last leg (from the Amazon warehouse to the consumer).
What really helps you to realize cost reduction and efficiency is the official Cost Profit Calculator developed by Amazon. This Excel tool can automatically calculate the detailed cost structure and percentage by filling in just a few basic information. It is very simple to fill in all the "orange box" cells, including product packaging information, product pricing costs, Amazon FBA fees, advertising budgets, etc. The Excel calculator can be used to calculate the cost structure and percentage.
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, so you can make your cross-border e-commerce journey less detour. From product packaging information and product pricing costs to Amazon FBA fees and advertising budgets, every aspect is important.
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# Amazon Global Store # Cross-border E-commerce # Taiwan Sellers # Cost Analysis # Profit Calculation #FBA Logistics # E-commerce Entrepreneurs # Cross-border Branders
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