No matter what business we do, we need to know the input and output. The same is true for Amazon business. Knowing what costs and expenses we will incur in the process of operating Amazon is a very important financial ability to start Amazon business, do a good job of budgeting, and profit accounting. . What are the costs of Amazon, I have summarized 6 types.
There are many items of Amazon’s expenses, I will list most of the expenses as much as possible
1. The monthly rent of the store is different for different sites. For example, it is 39.99 US dollars in North America and 25 pounds in Europe. Here is a little trick. If your Amazon account has not been sold for half a year, you can open a case to get the monthly rent back. Amazon customer service will suggest you to downgrade the store first, and then the monthly rent for the half year will be used. Call you. You can apply after receiving the money.
2. FBA fee: If you store products in Amazon’s warehouse, Amazon will send the products to your customers for you. You need to pay an FBA fee, including picking, packaging, shipping, delivery, return and exchange, etc. FBA order delivery fees are charged per piece, depending on the weight and size of the product. I have compiled a document about FBA fees and put it at the bottom of this lesson, you can download and use it.
3. Storage fee: The monthly storage fee and long-term storage fee charged by the Amazon warehouse. Amazon generally takes the monthly storage fee of the previous month between 7–15 days of each month. For example, if you want to see 1 For monthly inventory storage fees, please refer to the payment report containing transaction information from February 7th to February 15th. The monthly storage fee varies by product size and different months of the year. Although standard size products are smaller than the size of large products, standard size products need to go through costly and more complicated pile racks and cabinets during storage. And pack it for storage. The fee is charged in cubic feet, so the total storage fee for standard-sized products may also be greater than the total storage fee for large-sized products.
4. Commission (Commission/Referral Fee) is a core fee of Amazon, which is mainly charged to all third-party sellers selling on Amazon. In exchange, Amazon allows sellers to sell on its platform. For example, the sales commission for clothing and apparel is 17%, personal computers are only 6%, home and gardening is 15%, musical instruments are also 15%, and pet supplies are also 15%. If you sell a pet product for $10, Amazon will charge Your referral fee of $1.50. The commission is actually the amount that the seller pays for the permission to list products on the Amazon platform and to obtain a certain amount of traffic and exposure. The percentage of commission rate varies greatly based on category. But the commission rate for most product categories is 15%, but some categories may be as low as 6% or as high as 45%. You can find the latest commission fees for each category in the seller center.
5. Amazon site advertising is an important cost of promotion and marketing. There are three main types of advertising that pay: product promotion, brand promotion, and display promotion. Amazon advertising will be more perfect and more diversified in the future. Every advertising space is an area that sellers must fight for. It is necessary to make a good budget. Many advertising techniques require sellers to learn and master, and constantly adapt and adjust advertising to respond. New changes in Amazon advertising. Please also pay attention to my advanced advertising course.
6. Promotional activities: Prime day, LD, BD, Black Friday, Cyber Monday, back to school season, etc. Participating in these activities requires corresponding declaration conditions and discount requirements, as well as corresponding additional fees, such as primeday and Each promotion on Black Friday will charge $500, and LD will charge $150 each time.
7, Amazon plan: VINE plan, 0 plan, transparent plan, will also incur related costs
8. Others: gift packaging fee, removal order fee, return processing fee, etc.
The above are all expenses incurred on the Amazon platform in the process of operating Amazon. Amazon deducts the above expenses when it returns you to the sale. If the expenses are not enough to deduct, it will be deducted from your bound credit card. So we must do a good job of budget and cost control. If you have questions about Amazon’s operation and promotion, you can ask me questions. Welcome everyone to communicate.