How Much Do You Need to Start an Amazon FBA Business?

Today I talk about how much do you actually need to start an amazon fba business?

Credits:
Music by Mark Generous - Only You - https://thmatc.co/?l=CC691DCD

Video Parts:
0:00 Intro
1:13 Before the product
6:40 Getting the product
11:42 After the product

~Rough Transcipt~
Today I want to talk about a question that gets asked so often. I see it in YouTube comments of other YouTubers, in Facebook groups, and that is how much do you need to amazon fba business? Can you start with 1000$? What is the amount truly needed to start?

In this video, I want to go into details about how much money you actually need to start selling. I want to split expenses into what I would consider necessary, and what is optional that can be added down the road.

I will talk about all those components in chronological order, as you will incur these expenses. Disclaimer, all the prices listed are in USD

PART 1: Before the product
Course - O
Now, this is a debate that will probably never end: do you need a course or no? That would take a video on its own to explore that question alone because it truly depends: do you have prior e-com experience or no? are you already familiar with sourcing? all these things.

Personally, I would go for a course (I personally bought 2 courses actually and received value in both). Still, though, I will make as an optional expense. Highly recommended though optional. In terms of price. This can vary greatly from 400$ on the low end to 2k (I've seen 7k) so the sky is the limit really.

Product Research Software - M
This is the next logical step most people will take. Product research. You don't have an Amazon business if you have nothing to sell. For this, you really only need software like H10 or JungleScout. You can buy both, test them out and see which one you like best. A monthly subscription should give you enough time to validate great potential products. Absolutely mandatory to validate demand. [Validation not research]. Each runs for about 100$/m - offers to have a reduced first month

Samples - M
Once you've found interesting opportunities you desire to explore further, and order samples. Yes, you can find suppliers that offer free samples, but you'll still have to pay for shipping. I personally go for unique products that are not stock offered on the website, so I'll need to have the sample actually manufactured for me. Expected to pay 100-150$ per sample. You might need to go through few rounds of samples to get it right.

Barcodes - M
GS1 barcodes will set you back about [300$](https://www.gs1us.org/upcs-barcodes-prefixes/get-a-barcode) for 10 barcodes. I've personally only used resellers (like Barcodes mania) for about 1$/barcode and never had an issue.

Amazon Subscription - M
Start with an individual plan (free) and upgrade to PRO when you're ready to order your product. Runs for about 39.99$. A quick hack, set up your account on the Canadian side (for 29.99$ CAD), and your unified NA account with still allow you to sell in the USA.

PART 2: Getting the product
Once you've settled on a sample you are happy with. Let's move forward and actually source the product.

Bulk order - M
This is where it can vary GREATLY. How expensive is your product? How much are you ordering in your first order? In order to make it easy for myself, I'll stick to 200 units as a first order. Honestly, I'd suggest more like 300-500 units to start, but at the time of filming this video, Amazon has instated an inventory limit on new ASIN's of 200. Since most beginners don't want to go through the hassle of finding a separate warehouse and all that, 200 is fine to start. We'll also go with a 5$/unit product which is average. Not too expensive, not too cheap. That comes up to 1000$.

Inspection - M
Inspection is mandatory, especially on your first order. Don't skimp on it! It's a small price to pay, that can save you thousands down the road! You can easily find some for around 200$ and they will provide you will a full report.

Shipping - M
Again this can vary greatly depending on if you're using boat or air. How heavy your shipment is. How bulky your products are. I recently had a shipment leave China and I was quoted roughly 6$/kg. (btw get used to the metric system). air is expensive, but people opt for that option when starting because they're eager to start. If we go for 1kg/unit, we have a shipment totaling 200kg. That totals 1200$.

Total product cost of ~ 2400$
Photos - O
Either when your product is manufacturing or in transit to the warehouse, have your photos made. If you're just starting and have no idea how photography works, hire a photo crew (200-1000$). Not mandatory but highly recommended. If you don't have the budget, ask around? Do you have a friend good at product photography? Do you know someone who can loan you a DSLR? Do you have a recent iPhone? get creative.

PART 3: After the product
Launch strategy cost
- PPC ~ set a budget aside
- Giveaways ~ expensive
- ERP, Vine Programs