Starting an Amazon FBA (Fulfillment by Amazon) business can be one of the best ways to make money online. It’s a business model where you find products to sell, and Amazon takes care of shipping, storing, and customer service.
Sounds simple, right?
But there’s a big question that everyone asks before they start:
“How much does it really cost to start an Amazon FBA business?”
The truth is, it’s not free—and it’s important to understand the costs before you jump in.
In this post, we’ll break down every real cost of starting your FBA business. From buying products and shipping them to Amazon, to fees, tools, and even advertising.
Let’s get started.
📦 What Is Amazon FBA?
Before we dive into costs, let’s quickly cover what Amazon FBA is.
FBA stands for Fulfillment by Amazon. When you use FBA:
- You send your products to Amazon’s warehouse
- Amazon stores them
- When someone buys your product, Amazon picks, packs, and ships it
- Amazon handles customer service and returns
You don’t have to worry about boxes, labels, or shipping delays. Amazon does all the hard work for you. You just focus on finding the right products and growing your business.
💰 The Main Costs of Starting an Amazon FBA Business
Here’s the truth: starting an Amazon FBA business usually costs between $2,000 and $5,000 to do it right.
Let’s break it down by category:
1. Product Research Tools ($0–$99/month)
To find a product that sells well, you need to do research. You’ll want to see:
- How much other sellers are making
- How many sales a product gets each month
- How much competition there is
Popular tools:
- Jungle Scout: ~$49/month
- Helium 10: ~$39–$99/month
- AMZScout: ~$29/month
You can use free tools at first, but paid tools are more accurate and can save you from choosing the wrong product.
✅ Startup Tip: Try free trials of these tools before buying.
2. Amazon Seller Account ($39.99/month)
To sell on Amazon, you need a Professional Seller Account. This costs $39.99 per month.
If you plan to make more than 40 sales per month, this is the best option. Otherwise, Amazon charges a $0.99 fee per sale.
Almost every FBA seller uses the Professional account.
3. Product Samples ($50–$200)
Before you buy a large order from a supplier (like one on Alibaba), you should always ask for a sample.
This helps you:
- Check the product quality
- Test it yourself
- Make sure it matches the description
Samples usually cost $50–$100 each, depending on the item and shipping.
Some sellers order samples from 2–3 different suppliers, so they can choose the best one.
4. First Inventory Order ($500–$3,000+)
This is the biggest upfront cost in your FBA journey.
You’ll need to:
- Order enough units to stay in stock (usually 200–500 units)
- Pay for the product
- Pay for shipping to Amazon’s warehouse
Let’s say your product costs $4 per unit and you order 300 units:
- Product cost: $4 x 300 = $1,200
- Shipping cost: ~$300–$700
- Total: $1,500–$2,000
If you’re launching a cheaper product, you might start with $500. But for more competitive items, you may spend $3,000+.
5. Custom Packaging & Branding ($50–$500)
You may want to customize your product packaging with:
- Your logo
- Better design
- Instructions or inserts
Suppliers usually charge extra for this. The price depends on your packaging size and materials.
Basic custom packaging starts at around $0.10–$0.50 per unit.
So for 300 units:
- 300 x $0.30 = $90
If you want to look like a premium brand, it’s worth spending a bit more on packaging.
6. Shipping to Amazon (Freight + Duties) ($200–$800+)
Once your products are ready, you’ll need to ship them to Amazon’s warehouse.
Shipping costs depend on:
- The size and weight of your product
- Shipping method (air or sea)
- Country of origin
Example shipping prices:
- Small products by air: ~$2 per unit
- Larger items by sea: ~$300–$600 per shipment
You may also need to pay customs duties if importing from overseas.
✅ Startup Tip: Ask your supplier to arrange shipping for you at first (called DDP – Delivered Duty Paid).
7. Amazon FBA Fees (Ongoing)
Once your product is live, Amazon charges:
- Fulfillment fees: Based on size/weight, usually $3–$5 per unit
- Storage fees: Monthly, based on space used
Example:
- Sell price: $25
- Referral fee (15%): $3.75
- Fulfillment fee: $3.50
- Net profit before other costs: ~$17.75
FBA fees are worth it because they handle shipping and returns for you. But you need to include them in your pricing.
8. UPC Barcodes ($5–$250)
To list a product on Amazon, you need a UPC barcode.
You can buy these from:
- GS1 (official, recommended by Amazon): $30–$250+
- Resellers (cheaper but not always safe): $5–$20
Amazon prefers GS1-registered barcodes, especially if you want to build a brand long-term.
9. Product Photos ($50–$500)
Good photos help your product stand out and sell more.
You can:
- Take photos yourself (cheap, but tricky)
- Hire a freelance photographer
- Use a photo service (like Fiverr or Upwork)
Prices depend on the number of images and quality. Budget at least $100–$300 for solid photos.
✅ Startup Tip: Ask your supplier for free product images to use while testing.
10. Listing and Launch Costs ($100–$500+)
When your product goes live, you’ll want to:
- Run Amazon ads (PPC)
- Offer discounts or coupons
- Maybe do a small giveaway to get reviews
Most sellers spend $100–$500+ to launch a product and get it moving.
This helps you get sales, reviews, and better rankings.
11. Software and Tools ($0–$200/month)
Besides research tools, you may need:
- Accounting software
- Listing optimization tools
- PPC automation tools
- Inventory trackers
You don’t need all of them at first, but tools can save time and boost profits.
Budget around $50–$100/month for tools once you get started.
🧮 Example Startup Cost Breakdown
Here’s a realistic example budget for a beginner Amazon FBA business:
| Expense | Cost |
|---|---|
| Product Research Tool (1 month) | $49 |
| Amazon Seller Account (1 month) | $39.99 |
| Product Samples | $100 |
| First Inventory Order | $1,500 |
| Packaging & Branding | $90 |
| Shipping to Amazon | $400 |
| UPC Barcode (GS1) | $30 |
| Product Photography | $200 |
| Launch Ads (PPC) | $200 |
| Software/Tools (1 month) | $50 |
| Total | $2,659.99 |
This is a mid-range estimate. You can start with less, but having $2,500–$3,000 is a safe starting point.
⚠️ Hidden or Ongoing Costs to Watch For
- Returns and damaged goods: You may lose money on returned items.
- Storage fees: If inventory doesn’t sell fast, Amazon charges more.
- Refunds and reimbursements: Amazon doesn’t always refund you 100%.
- PPC overspend: Ads can eat up profits if not managed carefully.
- Account suspensions: You may need help if issues come up.
✅ Can You Start Amazon FBA With Less?
Yes, but it’s harder.
Some people start with as little as $500–$1,000, but:
- They may choose cheaper, lower-quality products
- They might not have budget for advertising
- Growth is slower
If you’re serious about making money, investing in a proper launch gives you a better chance of success.
🧠 Final Thoughts: Is It Worth It?
Starting an Amazon FBA business isn’t free, but it can be life-changing if you do it right.
You’re building an asset that:
- Sells products 24/7
- Can grow with time
- Can even be sold later as a full business
The key is understanding your costs before you start so you can plan properly.
Here’s the bottom line:
💡 Expect to spend $2,000–$5,000 to start an Amazon FBA business the right way.
Don’t rush. Take your time. Research well. Start smart. And build something amazing.
Need help choosing your first product or calculating your startup budget? Drop your questions in the comments or message me—I’m here to help you get started the right way.