Detailed explanation of Amazon store opening costs

1. Store rent and commission

Amazon Global Selling has two sales plans, Professional and Individual. It should be emphasized that the "Professional" and "Individual" sales plans are not equivalent to companies and individuals. Both companies and individuals can open these two plans.

The fees for these two plans are as follows:

"Professional Sales Plan" fee = Monthly rent + Sales commission

"Personal Sales Plan" fee = per-item fee + sales commission

In addition, Amazon is divided into three parts: North American site, European site, and Japanese site. The cost of opening a store varies for different sites.

Cost of opening a store on Amazon in North America:

European Amazon store opening costs chart:

Cost of opening a store on Amazon Japan:

*Tip: The sales commission for categories on the Amazon platform changes frequently. For specific details, sellers can click to view the seller backend help page: Selling on Amazon Fee Schedule.

2. FBA Fees

1. FBA order delivery fee

FBA delivery fees depend on the weight and size of the packaged product (product size segment). Standard size products refer to products that weigh no more than 20 pounds when fully packaged and do not exceed the following lengths: 18 inches on the longest side, 14 inches on the second longest side, and 8 inches on the shortest side.

Items that exceed these dimensions are considered oversized. If items are sold as sets, Amazon will calculate the total weight and dimensions of the set after the items are packaged together.

2. FBA inventory storage fees

(1) Monthly inventory storage fee

Amazon generally charges storage fees for the previous month between the 7th and 15th of the following month. Storage fees vary by product size segment and month. Although standard-sized products are generally smaller than oversized products, they require more complex and costly racking, cabinetry, and boxing when stored. However, fees are charged per cubic foot, which means that the total storage fee for standard-sized products may be lower than that for oversized products (based on volume).

For dangerous goods containing flammable or pressurized aerosol substances, Amazon will charge a monthly storage fee according to a separate standard. The current standards are as follows Image title:

This fee will take effect in early April 2019, when the monthly storage fee for the previous month is collected. The monthly storage fee for products in other categories remains unchanged. This major update of FBA is really very extensive. Whether the cost is higher or lower for sellers, you still need to calculate it carefully according to your own situation.

(2) Long-term inventory storage fees

Long-term storage fees will only apply to stranded inventory that has been stored for more than one year (previously, long-term storage fees were charged for inventory that had been stranded for half a year). At the same time, the minimum long-term storage fee will be reduced from $0.5 per item to $0.15 per item.

The update of long-term storage fees will take effect on February 15, 2019, which means that inventory stored for more than half a year will still need to pay long-term storage fees on the 15th of the next month. If it is the minimum standard, it will still be charged at $0.5 per piece.

3. Removal Order Fee

Removal fees are charged for each unit removed. Typically, removal orders are processed within 10-14 business days. However, during the holiday season and peak removal periods (February, March, August, and September), it may take up to 30 days or longer to process a removal order.

4. Return processing fee

The return processing fee applies to customer returns of products sold on Amazon that are in categories for which Amazon offers free return shipping, including the following categories:

* clothing;

* Clocks;

* Jewelry;

* Shoes, handbags and sunglasses;

* Luggage;

The Returns Processing Fee is equal to the total shipping cost for a given product. This fee applies to products sold on Amazon in selected categories for which Amazon offers free customer return shipping and that are actually returned to an Amazon fulfillment center.

5. Unplanned pre-processing service fee

If the products shipped to Amazon are not properly prepared or labeled, they will be subject to unplanned preparation services at the Amazon fulfillment center, such as labeling or polybagging. Currently, Amazon Logistics charges fees for the following unplanned preparation services:

3. CPC advertising costs within the site

Total advertising cost = CPC*number of clicks.

If you want more orders, you need more clicks, which will increase the total advertising costs. If you don’t want to increase it, you have to control CPC.

Acos=advertising expenses/sales.

Advertising fee = CPC*Clicks.

Sales = product unit price * sales quantity.

Sales quantity = exposure * click rate * order conversion rate.

Acos=(CPC*Clicks)/(product unit price*exposure*click rate*order makeup rate).