How is the profit of Amazon Middle East site? What are the benefits and discounts?

Amazon Middle East Station has attracted much attention since its launch. Some people are still waiting and watching, while others are eager to take action. As for the profit of Amazon Middle East Station, we will explain it in detail below. Let's take a look.

I believe many sellers have the following questions about the Middle East site:

Compared with mature sites in the US, Europe and Japan, how profitable are the Middle East sites?

Is the entry threshold of the Middle East site high? Is it suitable for beginners with only 100,000 yuan in starting capital?

I already have a store in Europe and America. Do I need to pay a monthly fee to open a store in the Middle East?

How is the FBA in the Middle East? Is the logistics cost high?

Is it true that the commissions of the Middle East site are lower than those of other mature sites?

Here, let us take a look at the costs and profit margins of the Middle East Station!

1. Cost of the Middle East Station

The gross profit margin is mainly calculated based on the cost structure, which consists of eight major links: production/purchase costs, first-leg freight, category commission, FBA storage fees, FBA delivery fees, depreciation fees, return and exchange fees, and advertising fees. Different products will have different profits in different time periods and different operating methods. Sellers can effectively control operating costs based on the above eight major factors and the policies and discounts of the Middle East Station.

2. Discounts and benefits at the Middle East station

(1) 0 monthly rent

The Middle East site is very friendly to sellers and has not charged any monthly rental fees since it was opened to Chinese sellers.

(2) Affordable first-leg freight

Amazon's Middle East Station has many first-mile logistics discounts and lower costs, as well as Pre-S projects (Middle East Station only) and Amazon's Cross-Border Carrier Partner Program (SEND) project discounts.

a. Pre-S Project: Supported by third-party logistics service providers, the air freight standard is reduced to 5KG, and sellers can apply for free warehousing quota and obtain corresponding logistics price discounts. This project can help sellers save logistics costs, improve warehousing efficiency, and thus increase sales of hot-selling products and new products.

b. Amazon Cross-Border Shipping Partner Program (SEND) Project: A third-party carrier officially selected by Amazon, with professional and stable services;

Sellers can enjoy Amazon's centralized purchasing agreement price and reduce the first-leg logistics costs; have the right to higher priority warehousing; sellers can track the entire process through the background and grasp the dynamics of the goods in real time; the door-to-door service and professional customs clearance capabilities provided by the cooperative carriers can help sellers simplify the first-leg warehousing process and reduce operating costs.

It is very suitable for sellers in the Middle East with small volume and high frequency.

(3) Low sales commission

The commissions of major categories on the Middle East site are 2-3% cheaper than those on other mature sites. When the same product is listed on the Middle East site and mature sites, the price on the Middle East site is generally higher than that on mature sites, and the commission rate is relatively lower, which directly increases the profit margin.

(4) Low storage costs

The storage fees at the Middle East site are much lower than those at other mature sites, and Amazon has also provided free monthly storage and removal services for new FBA products that meet the requirements.

a. Standard size and large new products: 3 months of free storage. If the requirements of the program are met, the first 30 units of each new parent ASIN will be exempted from storage fees within 90 days after the first product is received by the Amazon fulfillment center, and there is no ASIN quantity limit;

b. Exclusive for new products in the apparel and footwear categories: 4 months of free storage. If the requirements of the program are met, the first 100 products (units) of each new parent ASIN will be exempted from storage fees within 120 days after the first product is received at the Amazon fulfillment center, and there is no ASIN quantity limit.

(5) FBA last-mile delivery fee is low

The Middle East Station not only achieves next-day delivery, but its overall delivery costs are also much lower than those of other mature stations.

(6) Low promotion costs

Compared with the incentive competition of mature sites, the marketing promotion of Amazon Middle East Station has more development advantages, and the in-site marketing costs of the Middle East Station are even less than half of the costs required by other mature sites.

3. Profit advantage of the Middle East station

There is a large gap in the category, which has great development potential; the market is not yet saturated, the competition is relatively small, and the promotion cost is lower; Amazon's official support is strong, and there are benefits and preferential policies in all links, so the profit margin is very substantial. Some sellers can sell more than 3 times the profit of mature sites. However, this is only an individual phenomenon, and the profit of the product still needs to be rationally analyzed in combination with market research.