As an Amazon, can an individual open a store?
Before starting the article, I have to answer this question that has been asked a lot recently: I can’t suggest it.
why? In fact, according to Amazon's account classification, individuals can open stores. For example, American citizens, British citizens, Hong Kong, China, and mainland China can all open stores as individuals.
But I understand that the friend who asked this question may have not contacted the Amazon platform, and transferred from other places, such as Taobao and AliExpress. They want to use the simplest way and the lowest cost way to open an Amazon. Shop, try the lowest cost way to try this platform.
The reason I say no is because I want these friends to realize that if you just try a part-time job on Amazon now, whether it’s stocking, shipping, or all kinds of data software, you need a lot of money. Many people think that Amazon only takes one month. The monthly rent of US$39.99, in actual operation, all the expenses including the account are small money. The real big money is the stocking, logistics, and promotion expenses. If these expenses are not prepared, the account is difficult to operate.
Because today I’m talking about the Amazon cost series, let’s take a closer look at how much money is needed?
People often ask whether it is individual registration or company registration?
Try to use company registration. Personal registration currently has a very low pass rate. Even if it passes by chance, it is easy to trigger an audit later, and the pass rate of the audit is lower.
Registering the shop itself does not require any fees, and any behavior of charging a registered shop should arouse your vigilance.
But if you want to use a company to register, then you need to register a company first. The fee here mainly refers to the cost of registering the company.
If you go to register the company yourself, it basically doesn't cost you money, but if you want to ask an accounting company to do bookkeeping, it may cost about 150-200 per month.
Shop monthly rent
Amazon store monthly rent is a topic that sellers can’t avoid. If you want to open a store on Amazon, you have to pay a monthly service fee (monthly rent)
Take professional sales plan as standard, take North American station as an example
According to the above picture, you need to pay $39.99
The goods in other countries may be slightly different. Japanese stations are Japanese yen, and European stations are British pounds and euros. However, the final price is adjusted at a price of US$39.99, which is basically RMB 275 per month.
As for how to deduct it, it involves the dual-currency credit card you used when you registered the store. This credit card is used to deduct the monthly rent of the Amazon store. As long as you open a professional sales plan, Amazon will automatically deduct it every month
Of course, you can also choose a personal sales plan. There is no fixed monthly rent. You only need to pay $0.99 for each product sold. The relative sales authority will be much less. Generally, you still choose a professional sales plan.
The first batch of stocking costs
Some people have sufficient funds and may prefer high-priced products when choosing products. This will raise the threshold to a certain level and the competition will not be so fierce.
Some people are not particularly well-funded, they need to start with low-priced products, the first batch of stocking costs may be much less.
According to your own financial strength and resources, the first batch of 300-1000 stocks can be multiplied by the purchase price to get the value;
Domestic logistics costs
It is the cost of the goods sent from the factory to the export port,
In addition to paying for the purchase of the product, it is also necessary to pay for the delivery of the product to the port.
This cost will not be large, because factories generally have long-term cooperative logistics, and the price is generally slightly lower than that on the market.
The first voyage cost, that is, the cost of transporting the goods from the Chinese port to the Amazon warehouse, the distance from the Chinese port to the Amazon warehouse, we call it "first haul".
The cost of this depends on the attributes of your product.
Let’s take a look at the FBA tariff standards in 2020
1. Amazon FBA head trip
Amazon FBA first-way logistics can be divided into three categories, including express delivery, air delivery, and sea delivery. The advantages and disadvantages of the three types of logistics are very obvious. The advantages of express direct delivery are fast timeliness and good stability, but the disadvantages are high tariffs and expensive freight. The advantage of AirPlus is that it has good service, can provide double clearing, and has a faster logistics timeliness, but the disadvantage is that it has poor stability.
The advantages of sea delivery are low freight rates, large carrying capacity, and strong carrying capacity. The disadvantage is that the timeliness is very slow, and it usually takes 1-3 months to reach the Amazon warehouse in European and American countries.
2. Amazon FBA first trip tariff
Amazon FBA first route [Express direct delivery]: The first weight is 0.5 kg, the additional weight is 0.5 kg, and the weight is unlimited. Mail 21 kilograms of items to the US Amazon warehouse, the shipping fee is 33 yuan/kg. Shipping 23 kilograms of items to the Amazon warehouse in Canada will cost 41.5 yuan/kg. Shipping 23 kilograms to European countries such as Britain, Germany, France, Spain, Italy, etc., the freight is 43.5 yuan/kg.
Amazon FBA head trip [air plus delivery]: Lifting 21 kg, unlimited weight. Shipping 21 kilograms of items to the Amazon warehouse in the United States will cost 36 yuan/kg. The shipping fee for 21 kg items to Germany is 36.5 yuan/kg, and the shipping fee to Britain and France is 37.5 yuan/kg.
Amazon FBA head [shipping by sea]: Lifting 71 kg, unlimited weight. Send 71 kilograms of items to the Amazon warehouse in the United States, and the shipping fee is 12 yuan/kg. Sending 100 kg of items to the Amazon warehouse in Japan will cost 11 yuan/kg.
Based on the above 5 points, you can open an Amazon store and upload your selected products.
Use a calculator to add up the above five costs, and combine with your Amazon product pricing, you can clearly get your approximate gross profit.