Three sentences to solve the problem of Amazon product profit assessment: understand the complete cost structure, make good use of the official calculation tools, and accurately grasp the profit margin. This article will take you from the OEM mentality to brand management, mastering the key to success in cross-border e-commerce.
In the previous post, "A Must-See Guide to Calculating Startup Costs for New Sellers," we had a primer onAmazons open a storeThis article takes a closer look at the complete cost structure from manufacturing to sales to help you accurately assess your product's profitability. This article looks at the complete cost structure from manufacturing to sales to help you accurately assess your product's profitability.
Can you believe it? The most common mistake made by many Taiwanese cross-border exporters when transforming into Amazon is to follow the original costing method. However, the change from OEM to brand operator means a complete reorganization of the cost structure. Originally, only the production cost was considered, but now it is necessary to pay attention to marketing, logistics, platform commissions and other aspects of the cost.
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 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.
What's even more surprising is that Amazon has developed an Excel calculator, which can automatically calculate the detailed cost structure and percentage by simply inputting a few basic information. This tool can not only help you assess the cost difference between FBA and self-delivery, but also help 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 you need to make your cross-border e-commerce business more secure. 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 Profit Calculation #FBA Logistics # Brand Operation # E-commerce Entrepreneur # Cross-border Going to Sea
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