How much does the average Amazon seller make in a year? What are the costs?

I know a little bit about Amazon at home. Many merchants will choose to open stores on this platform. However, if you want to make money as an e-commerce merchant, you still need to have certain abilities. How much does an average Amazon seller make in a year?

How much does the average Amazon seller make in a year?

This question has always been a mystery because no one can answer it for you. There are too many factors involved in how much money you can make, including your investment costs, product prices, operating skills, logistics and other aspects. Only by combining them together can you roughly know your annual profit situation. All this is attributed to the fact that your store is in a normal operating state and is not affected by other external factors.

1. Cost of cross-border e-commerce on Amazon

01. Store monthly rent

Unlike domestic e-commerce, cross-border e-commerce Amazon does not require a deposit. Instead, you only need to pay a monthly rent to the platform, which is approximately RMB 200 per month.

02. Procurement costs

Product procurement costs are fixed expenses, which generally include product purchase costs, related taxes and fees, logistics costs generated by procurement, loading and unloading fees, insurance premiums, etc.

03. Logistics costs

In the process of transporting goods from domestic warehouses to overseas FBA warehouses, for cross-border e-commerce Amazon sellers, the first-leg transportation costs often account for the bulk of the cost expenditure.

04. Storage costs

There are three different types of warehousing: local warehouses, overseas warehouses, and FBA warehouses, and the costs invested by enterprises also vary.

2. Product Price

This is an important factor in determining the final profit of the store. If the product price is too low, the profit will be relatively small. If the price is too high, there is a worry that the product will not be sold. Therefore, as a cross-border e-commerce Amazon seller, when pricing your products, you must first research the market, and then make a detailed analysis of the product you want to sell, and then price the product to ensure your own profits.

3. Operational skills and methods

This is the lifeline. The sales volume of the store depends on the seller's operational strength. If your operational ability is not strong, it will lead to store losses. On the contrary, if your operational ability is strong, it will bring a steady stream of orders to the store, thereby increasing the overall sales volume of the store. Therefore, as a seller, if you feel that your ability is very poor, it is recommended that you ask someone to help you operate, so as to reduce unnecessary losses.

4. Logistics and warehousing

The cost of logistics and warehousing is where cross-border e-commerce Amazon sellers invest the most. If sellers can save costs on logistics, they can indirectly make money. However, due to the impact of the epidemic, the logistics costs in the past two years have fluctuated greatly. In addition, when cross-border e-commerce Amazon sellers choose to verify logistics providers, they can compare multiple options to achieve cost savings.

The above points are just the factors that affect the seller's final store profitability, as well as the model chosen by the seller and advertising investment. As a cross-border e-commerce Amazon seller, if you want to know how much money you make a year, calculate it yourself from the above points!

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