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How Much Money Do You NEED to Start on Amazon FBA?

February 12, 2020

(upbeat music) – Hey there, I’m Mike
McClary from and today we’re going
to answer the question how much money do you really need in order to start selling on Amazon? Well in order to figure that out, you need to look at six different things. The first is how much does it cost to actually sell on
Amazon every single month? And Amazon gives you
two different options. They give you the individual
account, which is free, you don’t pay any monthly fees, or they give you the professional account, which costs $39.99 a month. Now for the free option, you don’t have to pay
them anything every month but you do pay them every
time that you make a sale, and that’s 99 cents per sale. With the professional
account that costs $39.99, you don’t pay them an individual fee every time you make a sale. So if you do the math, if you’re gonna sell more than 40 products or 40 orders a month, it make sense to go ahead and
get the professional account. Now the next thing to
look at is your inventory, and by far and away, that is going to be your biggest expense starting this business. Now there is no right or
wrong or maximum or minimum that you can start with,
Amazon doesn’t care. It’s all up to you. You could start with as
little as $500 in inventory if you’re really strapped for cash, or you just don’t wanna take a big risk, or more than likely, you’ll wanna start with around $2500 to $3000, and that’s what most of our students do. And the reason is, you wanna try to get between 300 and 500 units of
whatever it is you’re selling. If you can’t get that
amount, totally fine. We know lots of people who have
been successful starting out with that less amount as well. Just keep in mind that if you buy a limited
amount of inventory with a limited amount of funds, you really have to take
everything that you make, all the profits off of every single sale, and put it back in to bigger
and bigger inventory orders, because that’s the only way you’ll be able to continue
growing your business and growing the amount of
inventory that you have. So either option works totally fine. Now the next thing you need
to look at is your shipping. Now normally, we include the
shipping into the product cost. So if I say the cost for
one my products is $5, when I say that, that includes
what I pay the manufacturer and that includes anything in
order to import that product to the country to sell it. The shipping fees and any
kind of duties and taxes. But if you wanna try to figure out exactly what the shipping costs are, you can do that pretty easily by going to a site like They’re a completely free service. If you know the details of
your shipment, the size, the weight, how many units, they’ll give you not
only just an estimate, they’ll give you a real quote
of what it’s going to cost to import that product. Now the fourth area to look at for where you may need to spend money would be on graphics and
packaging for your logo. You have a lot of options here though. First off, if you have any
kinda graphic skills at all, you could just do it yourself. We know a lot of people
that start off that way, they start basic and they
just wanna go out there and create their own graphics
and not do anything fancy. That absolutely is
something that you can do and doesn’t cost you anything. Almost every manufacturer out there that sells products to people like us who are private labeling, they also do basic packaging for you. They’ll have templates and
they might even be able to help you design your packaging and not charge you anything. It may not look absolutely
perfect the way you want it to be or as customized you want it to be, but it’s a great first option as well. Now if you do wanna get some
really good packaging done, you can also go to a site like 99designs. It’s gonna cost anywhere up to $500, but that’s money well spent because these are professional designers and they specialize in packaging and logos and all kinds of professional products. There are two other sites out there, one is called It allows you to go out there and find some basic service providers who do graphics and such,
and you’ll spend anywhere from $30 to $50 maybe for them
to help you with a design, or another site called allows you to find
freelancers who can specialize in all kinds of things, and
one of them is graphic design. Now the fifth thing
you need to think about is your product photos. These are absolutely critical if you’re gonna have your product make a lot of sales on Amazon. But again, you have a couple options. Nowadays, smart phones
take amazing photos, so there’s absolutely no reason at all not to have some really good photos that even you can take yourself. So if you don’t wanna pay for
a professional photographer, go ahead, grab your smart phone, set it up in a nice clear, bright area and take some pictures and do
your best at making it look as good as you possibly can. Now on the other hand, if you
really wanna make your photos and your products stand out, you can hire a professional photographer. They cost anywhere from
$30 to $50 per photo, so you have to keep in mind, how many photos do you
really want them to do? On Amazon, you can up to
nine photos on your page, so you could spend nine
times $50 per photo, so maybe $450 on a full photo package, but you don’t necessarily
have to do that either. The main primary image of your product is the most important
one, so if it were me and you’re starting out with
limited funds, go ahead, have a professional take a picture, the main picture of your product, just one of them to use
as your primary photo. Then you can start out taking
pictures of the other photos on Amazon, numbers two,
three through nine, and don’t pay anything for those, because again, that primary photo, that’s the most important one that shows up in the search results and that’s gonna get people’s attention. Finally, the last possible expense with starting your business
on Amazon is advertising. You absolutely have to advertise somewhat to get traffic to your product. Just throwing it up on Amazon is not going to get people
seeing it right away in order to start making sales, but it doesn’t mean it
has to be expensive. If you don’t really have
any funds for advertising, you can start off using friends, family and your social network. You can post on social media, whether it’s Facebook or Twitter
or Pinterest or Instagram, talk about your new
business and your product and try to get as many
people liking and sharing it as possible to get exposure
and traffic out there. That could jumpstart
your product right there in order to get some sales going. Now another way to get sales is to do something called
Amazon Sponsored Product Ads. The great thing about these
is while they do cost money, it’s not money out of your pocket. They simply deduct it from your balance, so every time you make a sale on Amazon, they’re adding money to your balance that they’re gonna pay
out every two weeks, and so as you use advertising,
they’ll just deduct the cost of that advertising from that balance. Now once you started getting some sales and some traffic in from
Amazon Sponsored Product Ads, if you want to, you can start
looking at external ways of getting traffic as
well, such as Facebook, Google AdWords, Twitter
ads, Pinterest ads, and Instagram ads, and maybe even YouTube. So that’s it, and hopefully you have a
much better understanding now of what it costs to actually
start selling on Amazon and how you can get going
for as little as $500 or spend maybe upwards towards $3000 to get plenty of inventory to really grow and scale your business. Now if you’re looking to start
your own successful business leveraging the incredible power of Amazon, then check out the description below for some incredible free
resources that we have. You’ll wanna check those out ASAP. Thanks for watching this video, and I look forward to seeing you soon. (upbeat music)


  • Reply Venkata Chebolu February 9, 2020 at 1:32 am

    Amazing content!

  • Reply Nia Lia February 10, 2020 at 6:13 pm

    Great info

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