Costs skyrocketed before Prime Day: logistics costs for a single site increased by 80,000, and advertising costs increased by 50%

After the Dragon Boat Festival, another festival is approaching for sellers. Yes, it is Amazon’s Prime Day. We have been looking forward to it for a long time, and finally it is here.

However, sellers have also tried their best for this Membership Day. For example, the various costs are visibly rising.

Before Prime Day, a seller revealed that the logistics fee for stocking goods at a single site increased by 80,000 . Everyone probably thought that 80,000 was not a lot, but the seller did some calculations and found that he was engaged in 3C electronic products, and the weight of a single product was 0.5kg, which was not light among electronic products.

I shipped over 8,000 items from my UK site alone in preparation for Membership Day. Previously, I usually stocked up by shipping via Qatar Airways. However, in order to catch up with the warehouse entry time for Membership Day, and due to storage capacity limitations, I could only transition to shipping via channels with slower delivery times. Now, all the items have to be shipped by air. One kilogram costs more than 20 yuan from Qatar Airways, and more than 30 yuan from air freight. The freight for a single site in the UK is more than 80,000 yuan, plus the increased freight costs for other sites, which means hundreds of thousands of yuan have been spent.

Compared with shipping costs, sellers are also annoyed by high advertising fees. Now the platform is very strict in checking reviews, and the reasonable and formal way to place orders is to spend money on advertising. This year, high advertising fees are a topic that sellers often discuss. After spending one or two thousand dollars, there is actually no order. Can you believe this?

Seller: My share of the money my brother-in-law earned from going to heaven was paid for advertising. Everyone present here has contributed to my brother-in-law’s success.

This is not just a joke. According to Marketplace Pulse research, advertising fees on all Amazon sites are continuing to rise. The average cost per click (CPC) for ads on the US site is $1.2, up 30% from $0.93 at the beginning of this year, and up more than 50% year-on-year.

In 2020, the average CPC for Amazon advertising was $0.85, and the average advertising cost of sales (ACOS) was 22%, which peaked before Member Day of the same year.

In 2021, this number is even more exaggerated. CPC was around $0.9 for most of the first quarter, and the average advertising cost of sales (ACOS) soared from 25% to more than 30%. The average conversion rate has remained at 12%-13%. In addition, the average sales cost has risen to $9 to $10, which means that it takes an average of $1.20 to generate one sale after eight clicks.

The editor confirmed this number with the seller. The seller is now earning around 2 US dollars per ad click, while some 3C accessories can earn up to 2.7 US dollars per click.

Yuanyuan also knows the 3C sellers and has asked for specific data.

The above shows that the advertising cost for one day was 264 US dollars, the ranking was about 20th in the small category, 12 orders were placed, and the sales volume was more than 560 US dollars. What do you think of this data?

More than 200 US dollars a day, nearly 8,000 US dollars a month, which is more than 50,000 RMB. To be honest, if you calculate carefully, every penny is hard-earned money!!!

Sellers may think that they have to spend money to boost sales on Prime Day, which is certainly true. However, if you are willing to spend some time, you can still save a lot of unnecessary waste! For example, you may save the handling fees required to pay for logistics and advertising.

The recently launched "Airwallex Visa Card" by cross-border payment service provider Airwallex has a super low handling fee - as low as 1%! Compared with the same type of virtual cards and bank credit cards, it is 1-2% lower, which can save a lot of money during Prime Day!

This virtual card jointly launched by AirCoin and Visa has a high-value credit card number segment. It not only has a high payment success rate, but is also very practical: it can be used to pay Amazon store rent, advertising fees, logistics fees, etc., and it also supports platform consumption; most other virtual cards only support US dollar payments and settlements, which means that sellers still need to operate currency exchange, which is troublesome and requires handling fees. AirCoin Visa card supports payment and direct settlement in 10 mainstream currencies, which is convenient and saves money.

Some sellers may ask, but I don’t use AirHub to receive payments, what should I do? This is to mention the characteristics of their virtual cards. Most virtual cards of other payment companies only support payment with the balance of the receiving account, but AirHub Visa cards can transfer money between accounts with the same name and there is no handling fee. In other words, even if you don’t use AirHub’s receiving account, you can still use their virtual cards.

Consult now, there are also super cost-effective solutions, scan the QR code in the picture to learn more:

Of course, if you want to open a new store or change the payment tool after Prime Day, you can also learn about the current limited-time promotion of Airlink cross-border payment: New users before June 30 enjoy 0-fee payment withdrawals in the first year (capped at 0.4% in the second year),

Click "Read original text" and spend 1 minute to register to reserve your spot in the discount offer!

In addition, AirConnect also brings you another benefit:

Scan the QR code in the poster to add the SkyHub assistant as a friend and reply "" to have a chance to win a copy of MoonSees online practical guidance course worth RMB 899: "From Novice to Big Seller - Amazon New Seller Growth Guide"! The quantity is limited, first come first served!