How often are Amazon advertising fees settled? How are promotion costs calculated?

Many people will promote their stores after opening them. Then, they can make advertisements on Amazon. However, the advertising fee needs to be borne by the merchants themselves, which is also part of the promotion. So how often does Amazon settle the advertising fee?

1. How often are Amazon advertising fees settled?

Generally speaking, Amazon will deposit the seller's sales revenue into the seller's bank account 14 days after you register with the seller platform. Subsequently, the settlement process is repeated every 14 days. Please note the following points:

1. The account balance is at least 25 yuan. Commission fees and customer refunds (if any) will affect the seller's balance.

2. In the Seller Platform, enter your valid bank account information in China. For more information, see Bank Account Information. After the settlement is completed, Amazon will publish the settlement report in the "Report" section of the Seller Platform and deposit the sales revenue into the seller's bank account through bank transfer.

It usually takes 6-10 working days for the funds to reach the seller's bank account from the time the bank transfer is made. Please note: public holidays will affect the remittance of funds, and the arrival time will be delayed by 6-10 working days.

It also depends on the payment method used. If you choose to pay online, the refund will generally arrive in your account 7 working days after the return. If you pay cash on delivery, the refund will be returned to the gift card after the return. Regardless of the delivery method, Amazon will notify you by email.

2. How to calculate Amazon promotion costs?

CPC advertising is charged mainly based on the number of times the ad is clicked. CPC costs are related to the keywords and bids selected for the ad, while sales data is related to the number of clicks and conversion rates. In the early stage, the CPC budget will be relatively high, about 30-50 US dollars. In the middle and late stages, you can reduce it according to the situation of the product, and increase the manual advertising budget, about 20-30 US dollars.

PPC pays based on the number of users who click on the ad. That is to say, if your product gets 60 clicks on a PPC ad with $30, the cost of each click is 30/60 = $0.5, which means that every time a buyer clicks on your ad, they have to pay $0.5. Generally speaking, it is normal for the promotion cost of a new product to account for 25%-50% of the total sales. In the later stage, it can be controlled within 10%, so that the product profit will be higher. You should also calculate the default bid so that you can better control your promotion costs.

Under normal circumstances, Amazon's advertising fees are usually settled every 14 days. Because the promotion costs are relatively high, everyone should try to save as much as possible. The cost of making advertisements is acceptable. First of all, everyone should know how to calculate the costs!

Recommended reading:

What are the steps for returning Amazon deposit? How to open a store?

What does it mean to gain a foothold on Amazon? How to operate Amazon?

What is the Amazon Brand Registry process? How does it work?