How Much Does It REALLY Cost To Start An Amazon FBA Business?

I’m going to share with you how much it actually cost to get started with Amazon FBA so I know a lot of you have asked this because you’re never really gonna get a straight answer because it is gonna vary dramatically from person to person it just depends there’s always the more inexpensive way of doing things and there’s more of an expensive way which is usually a higher quality so it’s up to you I know personally for me when I first started my Amazon FBA about two and a half years ago I definitely did everything myself anything that I could do myself I did myself even things that I probably shouldn’t have done myself like graphic design and Photoshop which I’m not good at I tried to do myself so I could save money now looking back at that I would recommend to actually outsource those things you can do that fairly inexpensively nowadays and it’s just smarted to do it because you’re gonna get a better quality image better results quicker because

eventually you’re gonna have to upgrade and you’re gonna have to get

higher-quality things done as your brand expands so sometimes it’s good to do that from the beginning but fancy tools and fancy gadgets you don’t necessarily need that stuff when you’re first starting with Amazon FBA I would hold off on a lot of these extras until you actually are making a profit with your your product so that you don’t have to take that money from your pocket so right now what I’m gonna share with you are some expenses that you’re gonna have to really account for when you’re starting your Amazon FBA business then I’m going to share with you a few extra extra tools that you’ll probably

eventually have to pay for after you start your Amazon FBA business so the first thing you’re gonna have to pay for is your Amazon professional selling account you actually don’t have to sign up for this account until you have inventory at Amazon you can start with a personal account and then later upgrade personal account is free the reason that you would upgrade though is because the professional account allows you to use Amazon ads and you’re gonna need that when you start selling your products online when you start your launch and this costs $39.99 US per month so once you start selling and you earn a profit about 39

9 will come out of your profits it’s not gonna be a separate fee that you’ll see on your credit card statement it’s just gonna come out of the money that they would owe you from your orders okay so the second fee would be your logo design your logo was obviously very important you’re building a brand but there’s so many people on fiverr.com which is a website where everything used to be $5 now things seem to be increasing quite a bit but you can get a logo done for anywhere from five to fifty dollars and these logos are great I mean all of my logos are from fiber comm and I’m very happy with them I don’t think it takes you know too much time to create a logo and so that’s why you can get them done relatively inexpensively you do want to make sure that when you buy your logo for the first time you should make sure that you get it not just in jpg format but in the actual PSD and PNG format because you want to be able to edit it later down the road others what you’ll have to do is if you do need to edit the logo you’ll have to go back contact the seller and put in a new order with them just so you can get those extra formats the third class will be your labeling so your product label so whatever your product it might be say it’s an iPhone if this is your product then you’re gonna have through packaging and then your nice labeling and that’s also gonna be artwork so you can get that done I would say get it down on upwork.com that’s a place where you can find freelancers as well you can also get Ad on fiverr.com or you can go to 99 design so 99 designs is basically a platform where you can have you submit your ticket of what you want done you will create you tell everyone this is what I want this is how I want to look and then you have maybe hundreds of designers send you a mock-up of what they could do for you and then you eventually select one designer it is very expensive though so that’s definitely on the higher end that can cost you up to $1,000

but if you’re just hot getting a label done on Fiverr calm it will probably cost you anywhere from 50 to 150 dollars so the next thing that you have to account for is your samples

so when you’re starting Amazon FBA business you basically do product research and then you find products that are selling well in Amazon and then you go and look for manufacturers and then when you find those manufacturers you have to request samples because you have to physically hold touch see smell the product yourself to make sure it is what they say it is and to make sure that it’s up to par with the quality that you want for your brand so this is so crucial it’s very important and it’s very costly because a lot of people are gonna source their products from

overseas shipping overseas is expensive it doesn’t matter how small your product is even if it’s this size if you ship it overseas it’s probably gonna be around 60 bucks

so it’s very expensive usually the suppliers might give you the sample for free but I find that nowadays there has tend to do that because a lot of people just try and get free products from these suppliers so they might charge you a sample fee as well which will later be deducted from your full order so if you place an order you get a refund for the sample and probably the shipping as well but you can account about $300 for that because you’re gonna have to get at least three samples so if you decide on an iPhone case you want to get three samples from different suppliers and you can account about $100 you know 60 to $100 per sample so that could add up to around $300 okay so next you have your Amazon listing photos so obviously your Amazon listing is very important this is the place where customers will see a product for the first time depending on your listing they will decide whether or not they want to buy your product and a big part of that is the way that your photos look your photos are a huge representation of your brand and your quality and you want to make sure that you really over deliver with those product photos so I would definitely not try to skimp out on this I know for me I am I did my own Photoshop for my photos basically what I did was I took photos on my phone of the product this is what I did in the beginning I had a white piece of paper that I would lay like this and

like this I put my products there and I took a photo of it on that white piece of paper so it looks like a white backdrop and then I got Photoshop somebody who’s an expert in Photoshop on Fiverr for $5 to Photoshop it to make it look like a rendered product and it actually worked with for me for several months with my first product but now um I don’t recommend doing that it’s it’s not you know people are really upping their game on Amazon you want your photos to look really awesome so you for product photos like that you could still take your own photos but just send them straight away to someone to Photoshop or you can send or you can send your products to a designer they can take professional photos for you because they have a whole setup for taking photos and they can Photoshop them for you and then send them back so this is gonna really be dependent on the quality that you want I would say it will range from fifty to three hundred dollars because you need eight photos for your Amazon listing all right let’s get into the inventory cost so inventory cost also is gonna vary dramatically from person person it just depends on your product so if you’re picking a product that costs under a dollar your inventory costs are gonna be much lower you could maybe spend even three hundred dollars on inventory my first product costed around twenty cents and my first

inventory including shipping was around three hundred dollars from China which is extremely cheap my second product which was around I think maybe eight dollars the inventory costs increased in my third product which is much more expensive because it’s a premium quality product now it costs me you know four it depends on the size of inventory too so it’s just really gonna depend I would say now to account for around 500 to 1500 dollars for your initial inventory so this is money that you need to have you know in your pockets right now that you can spend on inventory and just make sure guys that your product is not heavy because you don’t want to underestimate the cost of shipping especially overseas it’s very expensive trust me and with your first inventory shipment you do want to ship at the air not by boat so make sure that you’re not

I’m really heavy product or it’s gonna put a hole in your pocket and you’re gonna end up spending more money in the shipping then you built on the inventory which is not right I’m gonna go into another video for you guys

about what you should select for a first product and the things that you do not want for a first product that’s gonna be a separate video though

okay next cost is barkos so there are different kinds of barcodes that you can get you can go to speedy barcodes calm and get barcodes for maybe like $25 for ten barcodes or 30 barcodes whatever it is these are called the cheap barcodes and they’re cheap because their resale barcodes they’re not barcodes bought directly from gs1 just one is the only place that you can really trust for authentic barcodes because when you buy a barcode it is going to be registered under your name or your business’s name and on Amazon they want you to have barcodes from gs1 you can get away with barcodes that are you know resale barcodes from these other cheap sites but you do risk having your product and your listing taken down so you know if you’re just doing one product you don’t have a product with 30 variations honestly it’s worth the investment it’s a long-term investment you’re gonna have that product probably for a really long time so it’s worth investing the money it costs two hundred and fifty dollars for one barcode I know it’s super expensive but you know it’s up to you whether or not you want to risk having your products removed so the next cost is shipping so you know if you’re shipping from you local within North America if you live in North America obviously shipping is gonna be a lot less expensive but if you’re shipping overseas like most private labeling you know people do then it’s gonna be more expensive

so from China air shipping is extremely expensive but by boat it’s not very expensive at all the thing with the boat is it takes 30 days plus to arrive at the Amazon warehouse 30 days you know just in the water it takes around 21 days customs can all you know I always have issues with them being held up gyms and then also transporting it from the docks you Amazon can take you know maybe seven days so these are its a time factor but also if you’re shipping by boat you do need to get a bond you can get a continuous bond which lasts one year and it’s about five hundred dollars I do that because I ship you know large quantities and I ship every month by boat but you don’t have to do that in the beginning it’s not worth it you know you don’t even know you know how your products gonna do in the beginning so that’s what your first shipment should be by air by air it’s probably gonna cost you anywhere from 200 to maybe $700 for your initial shipment so just depends on the weights of your product and the quantity a lot of times people might want to order a larger quantity because they’ll save money but I would actually recommend ordering the smallest quantity possible for your first

shipment just because you need to test out the market you need to make sure that the products gonna do well and if it doesn’t at least you don’t have a ton of inventory to sell off so I would always recommend going with the smaller shipment even if it’s a little bit more expensive for the first order so as far as shipping goes you’ll also need a freight forwarder or broker I know that a lot of times these Chinese

manufacturers they say that they’ll handle the costumes and they’ll handle all the shipping for you um it’s up to you whether or not you want to trust that I personally without having a relationship with initial supplier I would actually arrange the shipping myself I would get a freight forwarder and a broker by myself because you don’t have that relationship you don’t know how they operate and at this point in time it’s too early to give that much responsibility to your supplier just have them make your products package your products and then you can handle the shipping on yourself but the

Freeport broker is gonna be maybe around two to three hundred dollars so you’ll have to account for that as well things are adding up okay so as you know probably with your first shipment you don’t just want to

from your supplier direct leads the Amazon warehouse the reason for this is because again you don’t have that relationship with your supplier you don’t know if what they packaged in the products is exactly what they sent me was a sample I know that I don’t want to be a debbie downer but you don’t have that trust yet so I always like to be safe than sorry

also you don’t know how they package the products maybe they didn’t pack them well enough maybe they broke during transit by the way you don’t want to have fragile products for that reason but you never know so the best thing to do is to actually ship that inventory of Debrecen to your house so you’re gonna have your products sent to your house and then from your house you inspect for the products if everything is well then you seal it back up but instead of just going to the post office and shipping them yourself what you’ll do is take advantage of UPS amazon’s discounted UPS shipping rates so how to do this is you would go to your product on Amazon seller central go to your listing click on the product click on send inventory and then basically what that does is you’re creating a shipping shipping plan so the shipping plan will be from your home address to the Amazon warehouse wherever Amazon wants to send it and then Amazon will create a shipping receipt an FBA label and a carrier label you print it put it on the boxes and then drop it off at the post office so this is a prepaid label the money comes out of your seller central account but the amount that you’ll pay and shipping is so much less than what you would have to pay if you were to go to the post office on your own because Amazon obviously has a great relationship with UPS and they get discounted rates and they pass that on to their sellers so the cost of this will greatly depend on again how much inventory you app and how much it weighs I would say anywhere from fifty to four hundred dollars and that’s a huge gap but I can’t really quote you specifically on that it next fee is your Amazon ads so you will have to account this honestly Amazon ads I it’s a love-hate relationship they’re really bloody expensive but they are worth it especially when you launch your product for the first time so you will have to invest

Amazon ads this is the only way that people are really gonna get to see your listing because when you first put your listing on Amazon it’s gonna be on like page 16 or 26 and nobody’s gonna click that far to see it so in order for people to actually have their eyes abused your listing you’ll have to put an Amazon ad so that it pops up in front of them and this can cost you anywhere from 200 to you know honestly it’s as much as you want to spend but I would say at minimum per month $200 okay so at this point I mean the bare minimum that you would need to account for to invest I would say is about $1,500 there’s also additional things that you can get jungle Scout is a plugin which I

absolutely recommend because this is going to help you with product research this is gonna help you figure out what product to sell on Amazon without really manually doing all of this calculations I’ll link it down below for you guys if you’re interested that one is gonna cost you an additional money per month it’s a membership they have a Chrome extension and they also have a membership that you can get I’ll just give you more

information in the link down below in addition to that you can pay for a trademark so if you know that this is the brand that you want to pursue and you’re not you don’t have any plans on changing your brand name then I would encourage you to get a trademark I wouldn’t worry about that in the

beginning because honestly in the beginning nobody’s like after your brand nobody knows your brand nobody’s trying to you know copy your brand but once you get traction and you have some extra money that’s when you can pay to get a trademark done you can actually

trademark things yourself it’s not that hard I know that people get very

confused and they feel like they need to hire a lawyer but that’s only because the verbage that they use on these sites is very complex but it’s really pretty basic and the website tes org actually gives you step-by-step tutorials on how to trademark so if you trademark by yourself it’ll cost you around three hundred and fifty dollars u.s. if you hire a lawyer the lorros lawyer will probably be around $1000 plus need $350 to actually

pay for the trademark in addition I would highly recommend this is the first thing that I would recommend you invest in and that is a course I know I say this time and time again but this is so valuable because I have a lot of people that come to me for coaching and they have you know I already try to create their product on their own they spend lots of money on their products and they make such common mistakes mistakes that they wouldn’t have made had they taken a course so I highly recommend that you take course the course that I took I’ll link down below for you it is an

expensive course ok it’s a very

expensive course because it’s the best course and you do get what you pay for when it comes to education like that if you can’t afford that course I do have an alternative course that is 1/4 the price it’s still a great course but it’s not as in-depth as the more expensive course and that makes sense so a course can range from $1,000 to $5,000 so yeah that’s a lot of money too but this is like one of the most important things to invest in because again otherwise are gonna end up wasting money and wasting time in the long run and I’ve seen it so many times so I just want to make sure that you guys know before I end this video that this Amazon FBA business yes it does have an initial investment it costs money to start it but it does pay off you know within you know I don’t know any other businesses that you know within the first year you’re already profiting a lot and that’s common with the Amazon business you know if you if you follow all the steps with the training program and you and you aren’t you know super slow with your approach to selling on Amazon then you can start making money within the first couple months that you have your product up so if you know your members right you can actually turn a profit real quick and so everything kind of pays itself off in the end

but I always encourage you please don’t you know take out loans and go into debt for something like this I would never recommend it even you know I when I first

I was a broke college student I kid you not I had not much money at all but I was working part-time after school as a server and while I was working as a server I saved up all my tips so that I can invest in this business and there’s always a way remember it’s your mindset if you want to figure something out you’ll figure it out but don’t go the easy path you know the easy path is to get a loan and or to you know borrow money from someone don’t do that you know work hard for the money save it and when the time is right invested into the training and invested into the business nothing has to happen right now if you can’t financially afford starting the Amazon business this minute then don’t get compulsive and trying to start something it’s not the right time for you save up money and the business will always be there Amazon’s always gonna be there it’s only growing bigger and bigger you’re not gonna miss the boat but just be smart about it because you don’t want to go into debt and you don’t want to put your family into trouble or anything like that for a business like this um yeah so that’s just kind of my words advice I just I don’t like seeing people who are five thousand dollars in debt because they want to start this business yeah so that’s it guys I hope that you enjoyed this video please comment below if you have any questions about Amazon FBA I’m taking all of your comments into consideration for video requests I’d be happy I mean this whole channel is about Amazon FBA so I’m more than happy to record videos form you again the link for the jungle scout is going to be linked down below link for the Amazon course that I recommend is going to be linked down below and if you have any questions let me know and I’ll see you in the next video guys talk to you later

Leave a Reply

Your email address will not be published. Required fields are marked *