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How Much Does it Cost to Sell on Amazon in 2024? (The Ultimate Guide)

Hey, Fellow Amazon Sellers!

Welcome to another edition of our weekly newsletter! Let’s dive into the latest insights and updates to fuel your success on Amazon:

1. How Much Does it Cost to Sell on Amazon in 2024? (The Ultimate Guide)

Starting an Amazon business in 2024 could cost between $2,500-$5,000, according to Jungle Scout research, but some sellers kick off with as little as $500. Costs include product sourcing, Amazon fees, and initial investments. However, spending more doesn’t necessarily equate to more success, as some sellers who started with less achieved quicker profitability. Key startup expenses include samples, inventory, Amazon Professional Sellers Account fees, and a UPC. Additional recommended costs for a successful launch might include a sponsored ads budget, and a registered trademark, while extra expenses could cover design work and product photography. Sellers can reduce costs by choosing different business models, purchasing less inventory, finding low-cost products, and doing tasks themselves. Unnecessary expenditures to avoid include legal fees, creating a standalone website, and expensive training courses.

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2. Amazon Aggregator Thrasio Files for Bankruptcy to Cut Debt

Thrasio, a leading third-party seller on Amazon, has declared bankruptcy to eliminate nearly $500 million in debt. The company secured an agreement with the majority of its lenders to reduce the debt and postpone interest payments for a year post-bankruptcy, as detailed in a U.S. Bankruptcy Court filing in New Jersey.

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3. Leverage the Latest Amazon Features and Metrics

Amazon has introduced several new features aimed at enhancing both the seller and customer experience. These updates include a Build Your Brand page offering new metrics for brand strategy insights, instant replacements for seller-fulfilled returns, a dedicated page for EU customer recalls and product safety alerts, the Ships in Product Packaging program for reduced fees and sustainability, and the Premium Navigation Carousel for improved customer browsing.

The new metrics help sellers gauge brand performance, customer loyalty, and conversion rates. The Ships in Product Packaging program offers fulfillment fee savings, while the Premium Navigation Carousel ensures a smoother browsing experience for customers. Sellers are advised to adapt to these updates to enhance their Amazon presence and customer engagement.

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4. Remove Unfair Amazon Product Reviews with AI: A Guide by Chad Rubin

Chad Rubin introduces a step-by-step guide for Amazon sellers to automate the process of removing unfair product reviews using AI and ChatGPT. This method involves exporting Amazon review data, analyzing reviews for guideline violations, and automatically generating removal requests for non-compliant reviews. This systematic approach aims to maintain the integrity of Amazon listings by ensuring only valid reviews remain. This innovation leverages AI to streamline the review cleanup process, offering a more efficient solution for maintaining product reputations on Amazon.

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5. Walmart Slashes E-Comm Losses by 40%

Walmart has made significant strides in enhancing its fulfillment and delivery network, leading to a substantial reduction in e-commerce losses. The company has managed to lower last-mile delivery costs by around 20% in the past year and now offers same-day delivery from nearly 90% of its U.S. stores. These improvements have led to a more than 40% reduction in e-commerce losses compared to the previous year. Store-fulfilled delivery sales have also seen a nearly 50% increase. With the implementation of automated technologies in warehouses and a focus on efficiency, Walmart aims for continued profitability improvements in its e-commerce sector.

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6. Monthly Fees May Be Coming to Etsy

Etsy sellers are concerned about the possibility of the platform introducing monthly subscription fees, following a recent survey conducted by Etsy. The survey hinted at different tiers for subscription services, offering various features based on the monthly fee paid. These could range from limiting free plans to only five listings per month to a $50 plan with unlimited listings. Additional perks such as Etsy Ads credits, discounts on supplies, and advanced shop customization might be included in these plans. This speculation is fueled by Etsy’s history of fee increases and recent statements about seeking a “fair exchange of value,” leading sellers to anticipate potential changes in the platform’s fee structure.

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7. Are Amazon Badges Worth It? Insights from Jonathan Tilley

Amazon badges serve as powerful tools to differentiate products, enhancing visibility, credibility, and sales. The seven badges discussed include Amazon Best-Seller, Amazon’s Choice, Climate Pledge Friendly, Amazon Prime, Small Business, Limited Time Deal, and Extra Savings. Each badge comes with its benefits, such as increased page visits and sales, and criteria like good reviews, sustainability, or being a small business. These badges can significantly impact customer decisions, making them valuable for sellers aiming to increase their product’s appeal and performance on Amazon.

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8. Amazon Joins the Dow, Giving the 127-Year-Old Index a Needed Upgrade

Amazon has been added to the Dow Jones Industrial Average, replacing Walgreens Boots Alliance, reflecting a shift towards modernizing the index and possibly reversing its recent underperformance compared to the S&P 500. The addition of Amazon, viewed as a tech giant despite being classified as a consumer discretionary stock, aims to reduce the gap between the tech-heavy S&P 500 and the industrial-heavy Dow, which has been criticized for not fully representing the American stock market due to its outdated composition. This change highlights the Dow’s efforts to stay relevant by incorporating more exposure to the fastest-growing companies in the U.S. economy.

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9. How Amazon Delivers to Customers in Yellowstone National Park During Winter

Amazon ensures year-round deliveries to customers in Yellowstone National Park, overcoming challenging winter conditions using specialized over-snow vehicles. Ben Mitchem, with over a decade of experience, drives packages from Gardiner, Montana, to Old Faithful, navigating through snow and wildlife like bison, for approximately two hours. The service is vital for the park’s residents, like Jenny Howison, who rely on Amazon for essentials due to the area’s remoteness, eliminating the need to stockpile supplies. Amazon’s commitment extends to supporting the local community, demonstrated by a $25,000 donation to Yellowstone Forever, emphasizing its dedication to the park’s welfare and preservation.

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10. Capital One Spark Business Card: Earn 2% Cash Back on Inventory Purchases!

If you’re looking for an excellent business card to optimize your inventory purchases for selling on Amazon, I highly recommend the Capital One Spark business card. As an Amazon seller, I can vouch for its exceptional benefits. With the Capital One Spark card, you can earn a lucrative 2% cash back or rewards on all your purchases from suppliers, helping you increase your profits while restocking your inventory. I’ve been using this card for my business, and it has proven to be an invaluable asset in managing my expenses and generating substantial rewards.

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That’s all for this week! Stay tuned for more exciting updates!

Happy Selling!

Todd Welch
Amazon Seller School