How Much Money Do You Need to Start Your Amazon Business

When you’re thinking of starting a business – Amazon or otherwise – one of the main things you need to think about is how much you’ll need to invest.

This is one of the biggest questions I get asked, so let’s find out!

Now, a word of warning. If you’ve come here hoping to hear a definite amount, i.e. exactly $1257, you’re going to be disappointed. The ideal amount of investment required to start your Amazon business will vary depending on what kind of enterprise you want to build.

But, having said that, the more money you have to start your business, the better. The more you have to invest, the more you can test ideas, be more creative and run advertisements – this is true of all businesses, not just Amazon. 

Now, don’t get disheartened. This doesn’t mean you have to have a bottomless bank account to be a success – I started my business with $300, some have started with less and others with much, much more.

To help you decide how much you need to start your business, we need to look at the 3 biggest factors that you’ll need to consider: 

  1. What you want to sell

The amount you’ll need to invest depends on what you want to sell – the more expensive the unit costs, the more money you’ll need to stock your store. If you want to stock your store with frying pans at $5 each, you’ll need just $250 to buy 50. If your store specialises in ergonomic chairs that are $50 a pop, you’ll need $2,500. 

  1. How you want to ship your products

Shipping is the second biggest cost to your Amazon business, so how you choose to send your items from the manufacturer to the customer will help determine how much money you’ll need to get going.

This is a big topic, but strictly speaking, you’ve got 2 options with freight; sea freight and air freight. Air freight is much faster but more expensive – typically around $4 a kilo, whereas sea freight, is slower but much cheaper – around 50c a kilo.

  1. Whether you want to create your Amazon product details page yourself or pay someone to do it

Often, the third biggest expense is the product listing itself – but you can keep costs low by doing everything yourself.

If you feel confident about writing a captivating product description and taking nice, clear photos, then go for it – with a small investment in a tripod and a white box, you can take perfectly suitable photos with your smartphone.

Of course, great images are vital to a successful product, so if you’re selling something more high-end or you can’t take a good photo to save your life, then it might be worth paying a pro – their services start from around $300 and can shoot up to thousands of dollars.

Many sellers choose to invest in copywriters and photographers because after an initial investment, you can use the description and images, again and again, for 13 different marketplaces. 

Starting your Amazon business can be as expensive or as cheap as you want it to be and ultimately depends on you and the business itself. But remember, if you do everything on the cheap, you could be stacking the odds against yourself. 

Thanks for reading guys. I’d love to know how much you started your Amazon business with! Feel free to comment below.

Virtual hugs and kisses!

Stacey xxx

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