Australian Export Council Webinar Q&A
In the recent ‘Selling Successfully on Amazon‘ webinar hosted by the Australian Export Council, the question was asked:
What does it cost to sell on Amazon, for an Australian manufacturer?
For an Australian business to sell on Amazon directly, the main costs to consider are:
- Product compliance with US regulations, e.g. FDA for food and cosmetics, CPSIA for baby products.
- Product packaging suitable for courier delivery.
- Liability insurance covering the USA.
- Product photography and image editing to Amazon specifications.
- Product marketing work to develop the selling messages that will best represent your products to American customers.
- Time to set up the product information in the form Amazon requires and to maintain it on an ongoing basis.
- Delivery of product orders to US customers.
- Amazon commissions, typically 15% of the total sale including delivery.
- Customer returns, which are typically 4% to 5% of orders in the USA, often much higher in some categories such as footwear and clothing.
- Advertising and promotion.
- Time to set up and maintain costing and pricing.
- For firms carrying stock in the USA there are the additional costs of export/import, warehouse handling and storage, and the potential tax implications.
For businesses using ExportX to sell in the USA, the costs are much simpler. There remains the need for product compliance and liability insurance. Beyond that it’s generally just:
- Getting product to an ExportX shipment consolidation depot e.g. Sydney or Auckland.
- A one-time contribution towards additional product photography and the development of product selling point messaging.
- A budget for brand development and product promotion.
ExportX takes care of getting products to market and the the costs of selling, delivering orders and providing customer service.