If you’ve ever considered selling products on Amazon, then I’m sure you (like most other business owners and entrepreneurs in the online space) have wondered about the real startup costs involved with starting an Amazon store. So what does it actually cost to start an Amazon store? And what exactly do you need to get there? So, I wanted to break everything down for you, explain Amazon’s fee structure, and give you an idea of how much money you actually need to get started selling on Amazon. It’s less than you think! Click below to watch the video OR keep scrolling to read the same information written out for you.
Cost depends on what you are sellingThe first factor to consider is what you plan on selling in your Amazon store. You can:
- sell products under your own brand name that you source wholesale or have items custom made by a manufacturer.
- resell products you purchase from retail stores and online for a discount with the intention to resell for a profit on Amazon
The real fee breakdownOnce you have an idea of what you want to sell, the next step is to sign up for your Professional Seller account, which will cost you $40/month. You do have the option of signing up for an Individual Seller account, which does not charge a monthly fee; however, Amazon then charges you $1 per sale on top of the regular percentage they take per sale. Ultimately, if you choose the individual account option, I’d still recommend upgrading to your professional seller account at some point in your Amazon selling career because it allows for more sales volume, which is everyone’s ultimate goal. In addition to the $40/month seller account fee, Amazon also takes 15% of each sale. So, for example, if you’re selling something for $10, Amazon will get $1.50 of that sale. Since Amazon is constantly changing their terms and requirements, there are certain product categories that are charged slightly more than 15% and some categories that are charged a bit less; but 15% is the average. Lastly, you’ll need to account for any shipping and handling charges along with your initial product costs. Simple enough, right? The four main costs involved with getting up and running are:
- $40/month seller account fee
- 15% per sale paid to Amazon
- product costs
- shipping & handling costs