I never imagined that the cost structure of running an Amazon cross-border e-commerce business would be so complicated! This is a critical issue that every Taiwanese cross-border seller must face before opening a store. In the global e-commerce platform competition, a precise understanding of the cost components is the basis for effective product selection and pricing strategies.
Today I'm going to analyze for 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
- Sales commission: fluctuates between 8%-15% according to different categories.
- First-Haul Transportation (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
Tips: Different sites and different categories have their own commission standards, you can login to the official website of Amazon Global Store for more details.
In the whole cost structure, the station commission and sales commission is relatively fixed, and cross-border brand owners need to pay attention to the three major changes in cost: the first leg transportation, FBA fees and advertising. This is also a part of 80% that novice sellers tend to ignore.
There are four main modes of international logistics for first-trip transportation, and they differ significantly in terms of time and cost:
- International Express: Best Time but Highest Costs
- Air transportation: better time, higher cost
- Sea-Air Transportation: Time and cost in the middle of the pack
- Sea freight: slowest time but lowest cost
The biggest problem is that many newbies don't know how to choose the suitable transportation method for themselves. According to practical experience, goods within 200 kilograms can be considered to use courier or air freight; more than 3 cubic meters is recommended to use sea freight. The key is to combine with your own sales plan and inventory management to make the best decision.
In terms of FBA fee, we have listed the basic fee standard for you, including storage and delivery fee. For more detailed information, you can inquire in the seller's backstage, if there is any update to the seller's platform announcement shall prevail.
Don't ignore the cost of advertising anymore! Many Amazon sellers are confused about investing in onsite advertising at the beginning of their operations. In fact, we recommend:
- 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
- Converting high-performing keywords into manual ads
- Continuously optimize advertising strategies and remove ineffective keywords
In addition to these three core costs, don't forget to account for returns and product defects - invisible expenses that are often overlooked, but can significantly impact your bottom line!
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# Amazon Global Store Opening # Cross-border E-commerce # Taiwan Sellers #FBA Logistics # Store Opening Cost Analysis # E-commerce Entrepreneurship # North America Store Opening # Cross-border Exporter # 2025 E-commerce Trend
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