Want to know how much it costs to start an Amazon FBA business? Good news! It's not a TON of money, and I'm going to share with you how you can get started for well under $1,000!
One of the BEST things about selling on Amazon is that you don't have to spend a lot of money to do it. There are so many other business opportunities where you have to buy “kits”, pay franchise fees, or build fancy websites.
With Amazon, you don't have to do any of those things!
That means you never have to sell to your friends or pay money to your “upline”. Plus, no money on other online biz basics like email marketing, web hosting, or graphic design.
You can start an Amazon FBA business as a side hustle without having to make a huge investment of time or money. It's a great way to test the waters of entrepreneurship.
I always recommend that new Amazon sellers start small and then invest more in their business later when it becomes more profitable.
That way you know that you're not going to go broke as you try to figure out this whole Amazon thing.
But….this is a business. So of course you have to spend some money. I'm going to break down the essentials for any new seller wondering how much will this really cost me?
3 Must Haves For Starting Your Amazon Business
There are 3 things that I recommend you spend money on when you decide that selling on Amazon is for you.
- Tools & Supplies
Inventory is what you are going to be selling on Amazon. This is the baseline of your business and determines how much money you will make.
Since this is a business of reselling, you have to have things to sell to the customers.
I recommend starting with around $500 in “seed money” that you can use to purchase inventory with.
The reason I recommend this amount is because it will give you a good amount of products so you can start seeing sales right away, without running out of inventory on day one (this is a good/bad problem).
When you start buying inventory, make sure to use the Amazon Seller App or the FBA Calculator to make sure the items are going to be profitable. There are lots of fees that come with the sales you have on Amazon, so they need to be calculated ahead of time.
If you don't use one of those free tools, you run the risk of buying inventory that will either never sell or sell for a loss.
What's great about selling on Amazon, especially with the Retail Arbitrage business model that I teach, is that you don't have to buy a large quantity of products. In fact, I recommend going wide not deep with your inventory.
I'd rather you buy 2-3 of 20 different items than invest your entire $500 in one single product. And with Retail Arbitrage you don't have to worry about purchase minimums from suppliers. You can head into Walgreens and walk out with $20 worth of inventory, no problem!
Tools & Supplies
You can start your Amazon business without many tools or supplies, but there are a few that you MUST HAVE.
To start with, here are the bare minimum things you need to get started:
- Computer – where you work inside your seller account
- Smart Phone – what you use to look up products in the store
- Scanning App – you can use the Amazon Seller App for free
- Printer – to print box shipping labels and product labels
- Paper or Shipping Labels – used for sending your products to Amazon
- Avery Address Labels – used to label the items you send in, so Amazon knows they are yours
- Scale – to weigh the boxes you are sending into Amazon (can be a bathroom scale)
- Boxes – don't have to be new, just have to be clean. You can get free ones from stores like Walmart or grocery stores. Or buy them for around $1 a piece. Here's more info about boxes on a budget.
- Packing / Shipping Tape – To close the boxes you are sending to Amazon
Assuming you already have a smartphone, computer and printer you could get the rest for under $100.
You can see all of the exact versions that we recommend on our recommended tools page.
There aren't many other businesses where you can start with $100 worth of tools! Just think of all the money you'll save by letting Amazon handle the fulfillment for you.
When it comes to starting an Amazon business, taking a training course is absolutely optional! But I highly recommend it.
Our Amazon Boot Camp is a step-by-step video course that will take you from the concept of having an Amazon business to making sales.
Sure, you can spend time checking out all of the free information on YouTube, Google searches, and blogs. But do you really want to spend 20 hours piecemealing a bunch of information from multiple sources?
Or would you rather learn from ONE person who has been where you are now? Selling on Amazon has made us a full-time income for over 9 years now. So we know what we are talking about!
We've now helped thousands of students complete the training as well. In fact, you'll be able to meet them inside of our students' only private Facebook Group 🙂
Ready to get started? Join us here: Amazon Boot Camp