Worried about the complexity of cross-border e-commerce costing? Be sure to get your hands on this systematic cost guide! For Taiwanese cross-border sellers, a clear understanding of the cost structure is a key foundation for developing selection and pricing strategies. Today, we're going to analyze the cost components of setting up an Amazon store for e-commerce entrepreneurs.
In the case of the North American site, for example, your business costs consist of five major components:
- Amazon North America Professional Sales Program: $39.99USD/month
- Sales commission: Rate fluctuates between 8%-15% for different categories.
- First-Haul Transportation + U.S. Import Duties and Taxes
- Amazon Logistics (FBA) Fees
- Product costs, target margins and operating expenses such as advertising
The biggest problem is that among these costs, the station commission and sales commission are relatively fixed, while cross-border brand owners need to be most concerned about three major variable costs: first-trip transportation, FBA fees and advertisement placement.
Did you know that there are four main modes of international logistics. There are four main modes of international logistics, and they vary greatly in terms of time and price:
- International courier: fastest but most expensive
- Air transportation: faster, moderate cost
- Air-sea transportation: speed and cost are in the middle of the pack
- Sea freight: slowest but least expensive
According to experience, express or air freight is suitable for shipments of less than 200 kilograms, while sea freight is recommended for shipments of more than 3 cubic meters. Unlike domestic e-commerce, cross-border exporters have to choose the most suitable first-trip logistics solution according to their own sales plan and inventory management.
In terms of FBA fees, there are clear calculation standards for basic fees including warehousing and distribution. 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.
For example, ad placement is the biggest headache for many new sellers. It's far more complicated than you might think, but we can share some practical ideas:
- Understand the competition in the product category and set the competitive objectives.
- Determine whether you want to go for aggressive rapid expansion or steady slow 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
There is hardly a successful Amazon seller who doesn't emphasize cost control. In addition to the costs mentioned above, don't forget to consider returns and product defects, as these invisible expenses are also an important part of the cost!
Do you have any cross-border e-commerce costing questions that you would like to be answered immediately? Don't hesitate to add our LINE, the green circle is waiting for you:https://line.me/ti/p/g2Vc38nLnR
# Amazon Seller # Cross-border E-commerce #FBA Logistics # Open Store Cost # Amazon Global Store # E-commerce Entrepreneurship # North America Station # Taiwan Manufacturer # 2025 E-commerce Trends
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