How Much Does It Cost To Sell On Amazon? If you are interested in selling private label products on Amazon, you need to know what you are getting into. This post will answer one of the most common questions I get asked, “how much does it cost to sell on Amazon with private label products?”.
First off, there is no “one size fits all” number in terms of startup expenses because there are so many variables involved.
I’ve had students in my course start with less than $500 and make 6 figures within 6 months.
Meanwhile, I’ve had other students invest as much as $15k on their first product.
What you choose to sell matters and your startup costs will largely depend on the manufacturing complexity of your goods.
However, there are a base set of expenses that every Amazon private label seller must incur in order to sell on Amazon the right way and have the best chance at success.
This article will enumerate every service, software tool and expense that you will likely encounter on your Amazon private label journey.Get My Free Mini Course On How To Start A Successful Ecommerce Store
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Table of Contents
- How Much Does It Cost To Sell On Amazon Private Label?
- Amazon Private Label Expense #1 – Amazon Professional Sellers Account
- Amazon Private Label Expense #2 – Keyword Research Tool
- Amazon Private Label Expense #3 – Product Samples
- Amazon Private Label Expense #4 – Your First Bulk Order
- Amazon Private Label Expense #5 – Branding And Packaging
- Amazon Private Label Expense #6 – Amazon Brand Registry
- Amazon Private Label Expense #7 – GS1 Barcodes
- Amazon Private Label Expense #8 – Factory Inspection
- Amazon Private Label Expense #9 – Freight Forwarding And Customs
- Amazon Private Label Expense #10 – Shipping To Amazon’s Warehouse
- Final Tally: How Much Does It Cost To Sell On Amazon?
- How To Reduce The Cost Of Selling Private Label Products On Amazon
How Much Does It Cost To Sell On Amazon Private Label?
If you don’t have time to read this entire post and you just want to know how much money you need to start an Amazon private label business, I’ll just cut to the chase.
Based on data from students in my ecommerce course (~4000 students), you should expect to pay between $2-3K on average to start selling private label products on Amazon in order to do it right.
Again, there are outliers who will spend more or less, but this is a realistic number.
My buddy Greg Mercer over at Jungle Scout also performed a survey of thousands of sellers on his platform and got similar numbers.
According to his survey…
- 17% of sellers spent $500 or less
- 12% of sellers spent between $501 – $1,000
- 13% of sellers spent between $1,001 – $2,500
- 18% of sellers spent between $2,501 – $5,000
- 16% of sellers spent between $5,001 – $10,000
- 21% of sellers spent more than $10,000
- 3% of sellers don’t remember
Basically, 60% of sellers surveyed on Jungle Scout spent less than $5000 to start