Can we still do business on Amazon in 2019? Judging from Amazon's current situation, 2019 is still a rising stage for Amazon. So how much start-up capital do we need to enter Amazon?
How much start-up capital does an individual need to start Amazon?
1. Cost of opening a store (fixed cost)
1. Register a company
2. Bookkeeping
3. Venue
4. Computer and Internet
5. Payment collection tool (for Amazon payment collection)
6. UPC/EAN code (for uploading products)
7. Platform monthly rent
2. Cost of operating products (floating costs)
1. Sample procurement
2. Product procurement
3. Logistics
4. Sales Commission
5. Warehousing
6. Return processing
7. Remove Order
8. On-site promotion (use one or more)
(1) Advertising
(2) Flash Sales
(3) Giveaway
(4) Early Reviewer Program
(5) Set up coupons
(6) Fake orders
9. Off-site promotion (optional)
10. Trademark registration (optional)
11. VAT tax (currently only required in 5 European countries)
3. Personnel costs (floating costs)
1. One-person entrepreneurship
2. Multi-person partnership
3. Hire people to operate
1. Company registration (license)
Basically, the fees here include seal engraving and account opening fees (you don’t have to open an account in the early stages depending on your own situation).
The cost of seal engraving is about 600-800. The fee for opening an account in different banks varies, about 1K.
You can choose to register yourself or choose an agency, the fees are similar.
For a small number of people who choose to register a foreign company, the fees will be calculated based on the actual situation.
2. Bookkeeping
Most start-up companies do not have accountants, and it is too wasteful to run these procedures themselves, so they usually choose to cooperate with third-party service agencies and file taxes every month. The cost of registering a small company and doing accounting is basically around 2K per year. If you need a VAT invoice, it will cost 6-7k
Note to newbies: When cooperating with a third-party registered company, ask clearly whether the company seal and bank account opening fees are included, and whether the prepared accounts can be shown to you. Try to choose a formal company, otherwise if the accounts are not done well, it may be included in the business abnormalities, and it will be very troublesome to go to the industrial and commercial and tax authorities to resolve the abnormalities.
3. Venue
Policies vary from place to place. In the past, in Shenzhen, you could pay to register your address, but this year the inspection has become more strict. If you must rent an office space, 1-2 people can choose a shared workstation. Depending on the location and facilities, the price of each workstation is around 800-1500 per month.
4. Computers and Internet
Once again, I would like to emphasize that you need to use a computer and IP that has not registered an Amazon seller account.
If you don't want to pull the network cable alone, you can also use a wireless network card (Huawei's will do) to log in to the backend in the early stage.
Computer cost: 0 (old) - 4K (Xiaomi, etc.) - 1W or more (Apple, etc.)
Network card fee: Taking Mifen card as an example, 420 yuan per year (800M of traffic per day) - 1140 yuan (unlimited traffic)
5. Payment collection tool (for Amazon payment collection)
Currently, Amazon's mainstream payment collection tools are the following three, and the most common one is the third one:
(1) U.S. bank account
Suitable for registered US companies, the fees are relatively high;
(2) Hong Kong bank account
It is currently difficult for individuals to open an account. As a large number of personal accounts are used to receive commercial payments from abroad, Hong Kong banks have tightened controls on the opening of accounts by mainland individuals. To open a company account, you need to register a Hong Kong company first, which costs several thousand RMB and takes more than one month;
(3) Third-party partners
Mainland companies generally choose Amazon's third-party partners. For example, payoneer, World First card, pingpong, Lianlian payment, etc. It is free to apply for an account, but a handling fee of about 1% will be charged for receiving payments. You can learn about the partners that are suitable for you from the AMZ123 website, or you can communicate directly with the relevant sales staff in a short and quick manner.
6. UPC/EAN code (for uploading products)
You can obtain relevant information and purchase through the following official website: http://www.barcodestalk.com
If you want to buy through Taobao, you need to be careful to identify and don’t buy too cheap products. They may be generated by a generator and the product cannot be uploaded. After all, a UPC is only about 1 yuan.
7. Platform monthly rental
The monthly rent for sites in different countries is slightly different:
United States: monthly rent 39.99 dollars/month;
Europe: monthly rent 25 GBP/month;
Japan: Monthly rent 4900 yen/month;
Note: If you have a channel to obtain a reliable business license (not registered with Amazon), you can save the large cost of registering a company and venue in this section. But you need to always pay attention to whether the company is operating normally.
2. Cost of operating products (floating costs)
1. Sample procurement
Generally, before selecting a product, you will select more than 3 suppliers to send samples, and calculate the sample procurement cost based on your product selection;
2. Product procurement
Determine the product purchase quantity in stages according to the operation plan (selected manufacturers can be exempted from sample fees) to calculate the product purchase cost.
For example: select a product with a purchase price of RMB 10, select 5 factories as samples, and determine that the first batch of purchase quantity for one factory is 80:
Product cost = 10*4+10*80=840 yuan
3. Logistics
Currently, the FBA delivery method is basically Amazon's standard, which is both mainstream and relatively complicated compared to self-delivery. Therefore, in terms of logistics, we will only talk about the expansion of FBA.
Logistics generally includes two stages: one is the first leg of domestic transportation, that is, from the factory to the Amazon warehouse; the other is FBA delivery, that is, delivery from the Amazon warehouse to the consumer.
The above are some basic costs we need to know about opening a store on Amazon. In any case, hard work will pay off. I wish you success in opening your store. If you want to know more about opening a store on Amazon, please continue to pay attention!
