Does Amazon require promotion fees? What are the procurement costs?

Merchants who open stores online know that traffic and promotion are two very important things after opening a store. Most merchants open stores on well-known domestic websites such as Taobao and Tmall. In addition, there is also Amazon's cross-border e-commerce. Does Amazon need promotion fees?

1. Does Amazon require promotion fees?

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2. What are the procurement costs?

1. Cost per product (and minimum order quantity):

Obviously, the cost per unit that a manufacturer quotes you is a critical point when considering initial startup and operating costs. When choosing a product, your goal should be to find the product that offers the greatest potential for profit margin within your budget.

While some products may appear cheaper due to a lower cost per piece, be sure to factor in the minimum order quantity. If the cost per piece is low but the minimum order quantity is high, you may end up spending more than if the cost per piece is high but the minimum order quantity is low.

2. Packaging costs:

Whether you choose plastic bags, cardboard boxes, or some type of specialty packaging, you need to factor in the cost of purchasing the packaging materials as well as the cost of packaging the product.

3. Branding costs:

You may need to hire a graphic designer to design logos, packaging, etc. for your brand. Alternatively, if you are on a tight budget, you can choose to do the graphic design work yourself.

It also costs money to have your logo printed on your product or packaging, so ask for a comprehensive breakdown of the costs.

4. Loading and shipping costs:

Once your product is manufactured, you have to pay for loading and shipping. You can manage the shipping logistics yourself or outsource the work to a freight forwarder, but whichever method you choose, you have to make sure you budget appropriately. Once your product is ready to be shipped to an Amazon warehouse, you also need to pay for shipping for that part of the journey.

5. Marketing and promotion expenses:

Every successful product on Amazon requires a well-planned marketing strategy. Whether you choose to give away free samples to spread the word or invest in Sponsored Product ads, you should be aware of your marketing budget.

When you open a store on Amazon, if the promotion tool you choose requires a fee, then you will need to pay for the promotion. Most merchants will choose to pay for better results, but you can try to control the cost of the promotion fee.

Recommended reading:

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

What is the Amazon Brand Registry process and how does it work?

Can Amazon adopt a no-source model? How to do it?