Amazon Seller Guide: The Rule of 5

Now many amazon sellers may already know this but for those who are just starting out and are just throwing ideas out and seeing what sticks, we have the golden rule to help you succeed as an amazon seller. We call it, ” The rule of 5″

Our company is based in Chiangmai, Thailand; this is where we source 90% of our products to sell on in the United States. We do everything ourselves, from product sourcing to product registering and logistics to the U.S.A. including all the required paperwork.

Ensuring that your product is a success or flops doesn’t depend on the golden rule we’ll be explaining, though if you follow it religiously, it will ensure that you aren’t sending a product out to de without knowing.

So what is this rule that we speak of? “Multiple the wholesale cost in Thailand by five to ensure that it can sell on Amazon”

But why five? to ensure all the other hidden costs are covered. This doesn’t mean that there are five other costs you need to worry about. In fact there are a few.

Your main costs as a 3P seller on amazon or a private seller on amazon can be broken up into 5 main expenses


As we are not based in the U.S and even if we were a key expense to factor in is the logistics cost. From Thailand to the U.S – From stateside to Amazon warehouses – From Amazon warehouse to the customer


Even though it’s online selling, you would be surprized at how much paper work is involved, sometimes you may not be in charge of it sometimes you will be. Paperwork includes pack lists, registering products think excel spreadsheet land!


This can also be refereed to as Amazon processing fees, or your own staff if you do not work alone.

General Amazon Fees

Amazon does not only have one processing fee, there are many hidden fees such as if you were to use amazon advertising or be sponsored to appear on the first page

Here’s a simle breakdown of where all your money goes through selling on Amazon.

Now, all the expenses mentioned in the pie chart are deducted from your amazon account upon selling your products. This pie chart is simply for reference for affiliate sellers and is by no means meant to represent amazon fees and selling on amazon entirely.

For more information about selling on Amazon or if you have any other general questions and curiosities about it, feel free to contact us at our email

We are open to having walk-ins at our office in Baan Tawai just look for the big burning ship!

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