How much money you need for FBA in honest terms

Wouldn’t you love to break away from your 9-5 and be your own boss? With Amazon FBA you can do just that! With a low cost of entry it is easy for you to get started, but how much does it cost? Today we will explain how much money you need to start Amazon FBA so you can take the first steps to success.

How much money you need for FBA in honest terms

So what is arbitrage? Arbitrage in basic terms is when you take advantage of an items difference in price to make a profit. This could be based on highstreet stores (retail arbitrage) or online stores (online arbitrage). Amazon FBA is a form of arbitrage and has endless potential. So let’s get started and jump in!

Packaging and prep for Amazon FBA

When first starting out with Amazon FBA you will need a printer. This is key for you to print out labelling as well as any forms or invoicing you may need when getting ungated (read our blog on getting ungated here). If you already have a printer that’s brilliant news and saves you money!

As your FBA business grows you may find it handy to buy a label printer so you can save time labelling items. But this is not a piece of equipment which you need straight away.

With Amazon FBA you will need to package and prep your items ready for when they get to Amazon’s warehouses. We explain the process of prepping and sending your items to Amazon here.

To avoid spending money for Amazon to prep your items we would suggest doing it yourself. To do this you will need:

  • Boxes
  • Tape
  • Bubble wrap
  • Polybags

Once you have a hand of FBA you may want to buy more equipment. However when starting out you can buy a printer and packaging materials for £150-200 ($176-235).

How much money you need for FBA in honest terms

Setting up your Amazon seller account

To be an Amazon FBA seller having an Amazon seller account is essential. A subscription to a Amazon Seller Central business account is £30 ($35) per month.

Amazon do offer a personal/basic Seller Central Account but we would advise having a business account. This is because you will be continually growing your Amazon FBA business. You can open a Amazon Seller Central account here.

A Deal Analyser

Having a deal analyser is incredibly important, helping you to analyse items and better understand how it is selling. And importantly whether it is a profitable deal!

You could also subscribe to a Dealfinder subscription however this is not essential. DealFinder is a service which accumulates deals in one central place. This can be handy when you are first starting out to help you understand what to look out for when sourcing deals.

Depending on whether you subscribe to a deal analyser alone, or both a deal analyser and Dealfinder this will cost £30-60 ($35-70) per month.

Purchasing your products

How much you spend on products depends on your current financial situation. To give you an idea of how much you could spend we think £100-£300 is a decent amount to start out with.

So how much does it cost in total?

So the big question, how much money do you need for Amazon FBA in honest terms? Drum roll please! Looking at the different aspects of opening an Amazon FBA account is £310-590 ($365-695) in total.

If you would like to learn more about Amazon FBA you can check out our website here and our Youtube channel here for more handy advice. Check out more of our blog posts here!

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