If you want to open a store on Amazon, the first thing you need to do is to understand the costs of opening a store on Amazon. Calculate the budget costs first, which will make it easier to make a profit and avoid large-scale losses.
1. Monthly rent.
Professional sellers pay $39.99 per month, while individual sellers have no monthly fee. It should be noted that, generally speaking, when you open a site, several countries included in the site can be opened at the same time, but the monthly rental fee remains unchanged.
2. Single item sales expenses.
Professional sellers do not need to be charged per item. Amazon will charge individual sellers $0.99 for each item sold. Considering the monthly rental fees, although individual sellers have the advantage of not paying monthly rental fees, they will still be charged $0.99 for each item sold. When the order volume is not large, individual sellers have an advantage over novice sellers, but as the order volume increases, professional sellers obviously have more advantages.
3. Sales commission.
All types of sellers are required to pay a referral fee for each item sold. There are different regulations for the sales commission ratio and minimum commission per item for different categories of goods. Amazon will charge the higher of these two amounts. For example: the unit price of a piece of sporting goods is US$20, and its sales commission percentage is 15%. The minimum sales commission per piece is US$1, so the sales commission to be paid is 20×15%=US$3. Since US$3 is higher than US$1, the sales commission for this piece of sporting goods is US$3. If the unit price of the sporting goods is US$5, the sales commission required to be paid is US$0.75, which is less than US$1. At this time, Amazon will charge a sales commission of US$1 for this sporting goods.
4. Logistics and distribution costs
This is the fee Amazon charges when you ship using FBA. Generally it is charged by piece. The amount of money charged for each item depends on the weight and size of the product. Moreover, the logistics and distribution costs will be adjusted at different times.
5. Monthly storage fee
Amazon's products can be divided into standard size and extra-standard size according to their size; and can be divided into media products and non-media products according to their nature. If you use the FBA warehouse service, you will need to pay the FBA warehouse rental fee proportionally per cubic foot per month.
6. Inventory configuration service fee
That is, the inventory configuration service fee, which is also the warehouse closing fee. When sellers convert their listings to FBA shipments, Amazon will randomly distribute your products to multiple warehouses. Amazon uses separate warehouses by default. If you do not set up combined warehouses, you do not have to pay this fee. If you set up combined warehouses, Amazon will charge per piece, and the specific fee depends on the number of destinations selected.
This is the end of the knowledge about the cost of opening a store on Amazon. If you want to get more information about the cost of opening a store on Amazon, please pay attention and we will continue to answer your questions~
