What is the process and cost of opening a store on Amazon? How much money is needed to open a store on Amazon?

Now more and more people want to enter cross-border e-commerce, and many people will choose to open stores on AliExpress or Amazon. Amazon can open stores on its European, North American, and Japanese sites. Only one account can be registered on each site, and different stores can be registered on different sites. So, what is the process and cost of opening a store on Amazon? How much money does it take to do business on Amazon?

Store opening process:

There are actually two ways to register for a global store: the investment manager channel and the self-registration channel. No matter which way you choose to register an account, it is free. After you have determined the mall where you want to open a store and understand the relevant taxes and regulations of the selected mall, you can complete the registration in just a few simple steps.

1. Single Sign-On

If you have accounts across regions, you can use Single Sign-On (SSO) to access all your marketplace accounts with one login in one browser.

2. Create an Amazon Global Selling Account

Cost details:

1. Amazon selling program fees

When you sign up for a seller account, Amazon offers you two different selling plans that you can choose from:

Individual Plan: $0.99 per item sold (applicable to sellers who sell 40 or fewer products per month)

Professional Plan: $39.99/month, unlimited products

2. Amazon platform referral fee (Referral Fee)

The Amazon referral fee is a fee for listing and selling your products in the Amazon store. The referral fee is calculated as a percentage of the sales price or a minimum amount and applies to all products you sell on Amazon.

The platform referral fee rate varies depending on the product category. However, the referral fee for most categories is around 15%, and the minimum amount is $1. Of course, there are some exceptions, such as the minimum amount for jewelry and watches is $2.

3. Variable Closing Fee

Variable settlement costs, also known as variable costs, refer to cost items in total costs that change with changes in output.

4. FBA Fees

If you want to do well on Amazon, it is necessary to choose FBA shipping.

FBA fee = first-leg fee + FBA logistics distribution fee + warehousing fee + return processing fee + removal order fee + unplanned service fee

1) Delivery costs of the order: including order processing fee, pickup and packaging fee, first weight fee and additional weight fee, charged on a per-item basis.

2) Storage fees: including monthly storage fees and long-term storage fees. Generally, monthly storage fees are charged between the 7th and 15th of each month. Long-term inventory storage fees are charged in addition to monthly storage fees. They are mainly for goods that have been stored in the warehouse for half a year or more. Before the adjustment, they were charged on the two major inventory count days of February 15th and August 15th each year.

3) Return processing fee: only for products in certain categories for which Amazon provides free return shipping (such as clothing, watches, jewelry, luggage, shoes, handbags and sunglasses).

Fee = total delivery fee (which is equivalent to the delivery fee for the buyer's return, which is borne by you).

4) Removal Order Fee: This is the fee charged when you ask Amazon to return or dispose of your products stored in Amazon warehouses. Usually, removal orders are processed within 14 business days. The removal order fees are as follows:

5) Unplanned service fee: If you encounter an emergency and need Amazon to handle it, you will be charged an additional service fee. For example, if the goods you send to the Amazon warehouse are not properly pre-processed or labeled, etc., you will be charged per piece.

5. Trademark registration and brand filing fees

If you want to do well on Amazon, it is necessary to register your own trademark to protect your brand.

Since trademarks are protected territorially, US trademarks are only protected in the United States, and EU trademarks are only protected in the EU. It is not necessary for you to apply for them in every site. You can also find a trademark agency to help you register.

The above is the process and cost of opening a store on Amazon that I will share today. In short, before investing in Amazon's cross-border e-commerce business, it is very necessary to be familiar with the process and cost of opening a store on Amazon. Whether you have a lot of money or very limited funds, you must understand the relevant costs in detail before you prepare to do Amazon, so as to ensure that every penny is spent where it should be spent.

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