How much money do you need to start an Amazon business in 2024?

Opening an Amazon business in 2024 is a tempting opportunity for many entrepreneurs looking to take advantage of one of the world's largest online platforms. However, before you begin to implement your plans, it is important to understand how much money you will need to successfully launch and grow your Amazon business.

Main costs at the start

Register a seller account

The first step towards starting a business on Amazon is registering for a seller account. There are two types of accounts: individual and professional.

• Individual Account: Free, but there is a $0.99 fee for each item sold.

• Professional account: Subscription costs $39.99 per month, with no additional fees per item sold.

For serious entrepreneurs who plan to sell a significant number of products, a professional account is a more profitable choice.

Purchase of goods

One of the most significant expense items is the purchase of goods. The amount required for this depends on the type of product and the volume of the purchased batch. On average, for the initial batch of goods you can estimate the amount from $1000 to $5000.

Logistics and storage

Amazon offers two main fulfillment models:

1. Fulfillment by Amazon (FBA): Amazon handles all aspects of storing, packaging, and shipping products. FBA service costs vary depending on the size and weight of the item.

2. Fulfillment by Merchant (FBM): The merchant independently handles the storage, packaging, and delivery of goods. This may be a more economical option, but requires additional effort.

To use FBA, you need to consider the following costs:

• Storage Fees: Varies based on the volume and length of time items are held in Amazon warehouses.

• Handling Fees: Includes the cost of packaging and shipping the items to the buyer.

Marketing and salesmovement

To successfully start on Amazon, you need to invest in marketing and promotion. Amazon Sponsored Products advertising campaigns help increase the visibility of your products. The advertising budget may vary depending on the competitiveness of the niche and the goals of the campaign. On average, it is reasonable to budget from $300 to $1000 per month for advertising.

Creation and optimization of listings

High-quality listings play a key role in attracting buyers. Costs may include:

• Product photography: Professional photography helps increase conversions. The cost varies from $100 to $500 per shoot.

• Copywriting: Optimizing product descriptions for SEO and attracting customer attention. Copywriting services can cost from $50 to $200 per listing.

Total: preliminary costs

Let’s summarize and determine an approximate budget for starting a business on Amazon in 2024:

• Seller Account Registration: $39.99 per month (Pro Account)

• Purchase of goods: $1000 - $5000

• Logistics and storage (FBA): $200 - $1000

• Marketing and promotion: $300 - $1000 per month

• Creation and optimization of listings: $150 - $700

In total, to start a business on Amazon in 2024, you will need initial capital in the amount of $1,700 to $8,700. These numbers may vary depending on the chosen strategy, niche and other factors.