Are you a new seller and want to start a new Amazon business but are unsure of how expensive it’ll be? The good news is that It might not be as expensive as you think!
One of the advantages of using an online platform like Amazon is that you don’t need to spend a lot of money to get started. 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.
It’s recommended to start small and invest more when the business becomes profitable. Based on Jungle Scout’s research, new sellers spend approximately $3,836 to start selling on Amazon — including product costs, Amazon fees, and other necessary initial investments.
Jungle Scout surveyed thousands of Amazon sellers to find out exactly how much money they spent when they got started on Amazon.
- 18% of Amazon sellers started with $500 or less
- 10% of Amazon sellers started with $501 – $1,000
- 12% of Amazon sellers started with $1,001 – $2,500
- 18% of Amazon sellers started with $2,501 – $5,000
- 22% of Amazon sellers started with more than $10,000
There are 2 basic things that you need to have to start selling on Amazon:
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.
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.
2. Tools & Supplies
If you want to do it all yourself, there are bare minimum things you need to be successful, such as:
- Scanning App
- Paper or Shipping Labels
- Avery Address Labels
- Packing/Shipping Tape
When it comes to starting an Amazon business, taking a training course is absolutely optional! But it’s recommended that sellers get familiar with Amazon’s rules and systems, so they can take advantage of everything Amazon has to offer and get the best profit from their products.
Once you have your product and your supplier, it’s time to launch and advertise your product. Amazon FBA program or 3PL providers (MetsCube) can storage and ship on your behalf, making the fulfillment process easier for you, reducing time and money.
To advertise, there’s no better place to do it on than Amazon itself. Use Amazon’s advertising system, Amazon PPC, to promote and advertise your products on and off Amazon.
As we saw from the survey results above, Amazon sellers say they spent an average of $3,836 to start their businesses.
However, some Amazon sellers said that they started out with less than $500. While this might not be the most suitable option, it is possible to start on Amazon with little investment and work your way up.