How much does it cost per month to run an Amazon e-commerce business? Is it expensive?

Today, I will introduce you to the content of opening a store on Amazon. Now, more and more merchants are opening stores on Amazon. For Amazon merchants, they need to prepare enough store opening fees. How much is the monthly cost of doing Amazon e-commerce?

Amazon is different from domestic platforms and does not require a deposit. Its total costs mainly include the following:

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

2. Product costs: Product purchasing and packaging fees, which depends on the products you buy; unless you do dropshipping, it is also a fixed fee.

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, as well as 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.

Hard costs:

Monthly subscription fee: $39.9/month product ($3)

First-leg transportation fee (1 USD)

Warehousing cost (0.1 USD) Operation cost (25% of the total)

Trademark(500)

The total cost is: product (3*300) + first leg (1*300) + warehousing (0.1*200) + trademark 500 + monthly rent 39.9 = 1759.91759.9 + operation (1759.9*0.25) = 2199 US dollars, which is about 14414 yuan after conversion at the exchange rate.

After reading the above introduction, you should know the approximate monthly cost of doing Amazon e-commerce. Of course, there are definitely other expenses, and this is just the hard cost. There are also some miscellaneous costs, so you need to prepare about 20,000 yuan in start-up capital.

Recommended reading:

What is the difference between Amazon PPC and CPC? What are their uses?

How to exchange products on Amazon US? How to complete the exchange?

What are the requirements for individuals to enter Amazon? What should I pay attention to?