Amazon FBA requires meaningful upfront investment, primarily in inventory.
Realistic startup cost breakdown:
- Amazon Professional Seller account: $39.99/month
- Initial inventory: $500-$2,500+ (this is your biggest expense)
- Product research tools: $30-$100/month (Jungle Scout, Helium 10)
- UPC codes: $30-$250 (from GS1)
- Product photography: $100-$500
- Logo and branding: $50-$300
- Initial PPC advertising: $200-$500 for launch
- Shipping to Amazon warehouse: $100-$500
Total realistic range: $1,000-$5,000
You can start closer to $500 with wholesale or retail arbitrage, but private label (building your own brand) typically requires $2,500-$5,000 minimum to do properly. Cutting corners on product quality or photography usually backfires.
Ongoing costs: Amazon takes roughly 30-40% of your sale price in referral fees + FBA fulfillment fees. Factor this into your margin calculations before sourcing any product.