What does Amazon’s entry fee include? Introduction to Amazon’s entry fee

Amazon's cross-border e-commerce platform can be said to be the world's largest cross-border e-commerce platform. There are many merchants opening stores here, and there are also many consumers willing to consume on this platform. So what does Amazon's entry fees include?

What does Amazon’s entry fee include?

1. Platform Subscription Fee

1. Monthly rent: This is: 39.9 USD/month;

2. Product Fees: Product procurement and packaging fees, which are determined based on the products you purchase; unless you are a dropshipper, this is also a fixed fee. If you refund a buyer for an order for which you have already received payment, Amazon will refund you the sales commission you paid for the item minus the applicable refund administration fee (US$5 or 20% of the applicable sales commission, whichever is lower).

3. FBA storage fee: This fee is generated during the operation and is determined based on the volume and weight of the product. The cost is relatively floating and is calculated based on the quantity of your products.

4. First-leg transportation fee: The fee for shipping from the seller’s warehouse to Amazon’s distribution warehouse. This is also a relatively fixed expense for Amazon.

5. Commission: Amazon will charge a commission ranging from 8% to 25% for products sold on the platform. The fee is determined by the product and is relatively floating. It is also a fixed fee.

6. Storage fees: Amazon will charge monthly storage fees and long-term storage fees for the goods placed in their warehouses. If the goods exceed the specified time, long-term storage fees will also be charged.

7. Collection fee rate: Each third-party institution will charge a fee ranging from 0.3% to 1.2%.

8. Other expenses: In addition to these, there are some other miscellaneous expenses, such as advertising, off-site promotion fees, and personnel, equipment, venues, water and electricity, trademark registration and other expenses. So how much does it cost to start an Amazon business? Let's assume that the product costs 20 yuan, which is about 3 US dollars, and the logistics cost is 1 US dollar. FBA costs 3.48 US dollars each. Let's prepare 300 products and do the math.

One thing to mention here is that the cost of opening a store on Amazon will definitely be a little higher than that on Taobao, and the threshold for opening a store is also much higher. Therefore, you should first check what the conditions are for opening a store for one day. Only when the relevant conditions are met can you apply to open a store.