Does cross-border e-commerce require a lot of investment? How much investment?

If you want to start a business, you need to have some money to invest. As for how much money you need, it depends on what you plan to do and how you plan to do it. If you want to do cross-border e-commerce, is the investment large?

Larger

1. How much investment is required for cross-border e-commerce?

The early investment in cross-border e-commerce can be large or small, depending on your own model and scale. For example, Amazon has two mainstream operating models, one is the no-supply model and the other is the boutique model, or both. Different operating models require different amounts of investment.

2. How much money should be invested in cross-border e-commerce?

The cost of opening a cross-border e-commerce store is very low. Today we take the most popular Amazon platform as an example to see how much money a newcomer needs to invest to make a profit. We calculate based on the actual cost of opening and operating a store. This does not mean that we will just open a store and ignore everything else in the later stages. We calculate the account based on actual operations.

The first is the business license fee. Here we use the self-employed business license as an example. Because self-employed registration does not require the operation of an accounting company, you only need to report taxes and annual reports according to actual circumstances. We can do it by ourselves. In most areas, you can do it online. You don’t need to go to the tax bureau. Just make a few more trips. It is recommended that you register for a self-employed business license by yourself. If you provide accurate relevant information, it can usually be completed in less than an hour. There is no additional cost.

After obtaining the business license, we started to register stores. The monthly rental for professional sellers on Amazon is US$39.9, which includes all the costs of opening a store worldwide. An account is only charged once. For example, if you open a store in North America and Europe at the same time, you will only be charged US$39.9. This fee is charged by account, not by the number of stores.

After we set up a store, we started to select products. Before selecting products, we need to test the products. The cost of testing is about several thousand yuan, adding the logistics and advertising expenses for testing. We take 5,000 yuan as an example, because the advertising expenses for the initial testing will vary according to the type of product. Based on our experience of multiple testing, we think 5,000 yuan is enough for us to test the products.

After the rough calculation above, the minimum capital requirement is more than 20,000 yuan. Of course, sufficient funds will allow you to make profits faster. If the funds are insufficient and the inventory is insufficient, it is likely to cause your store ranking to drop and reduce sales.

In summary, the investment in cross-border e-commerce is still relatively large. Of course, if you don’t have sufficient funds, you can reduce the initial investment appropriately. But at least you need to prepare 20,000 to 30,000 yuan.