Feb 17, 2020
There’s a lot of Amazon FBA sellers out there waving their banner of achieving six and seven figure incomes. Whether those numbers are real or exaggerated, the reality is it takes money to make money. All kinds of legitimate businesses need investment in time and money, and you certainly need them before starting an Amazon business. But knowing how much you need is as important as having them. Setting your expectations is part of running a successful online business.
Today, we discuss how much money you need to invest to start an Amazon business. We explain why it’s important to know what to expect before starting. We list the initial fees you need to consider when starting on Amazon, including the operational costs you should expect as you grow your store. We also share some of the tools we use in our Amazon businesses as well as explain why we don’t recommend taking out a loan to start your Amazon journey.
“If you don’t want to pay fees, remember what Amazon gives you in place of that: warehousing, shipping, customer service, and all of your returns.” - Amy Feierman
This week on the Amazon Files:
- The importance of investing in education before starting your Amazon business and why free courses and YouTube tutorials may not be enough
- The difference between a hobby and a business and why you need to ensure your Amazon business is fun
- Why you need money to start a business and how to start an Amazon business with as little as $500
- Why we don’t recommend taking out loans to start with Amazon
- The differences and similarities between operational and initial costs
- Initial, selling, storage, and other fees associated with setting up an Amazon store
- How much an Amazon Pro-Merchant account costs and why we recommend it
- Paying for your taxes and the Amazon 1009-k
- Tools and resources that we use and how to beat the shiny object syndrome
Related Content:
Jumpstart Your Amazon Business Today!
Are you ready to jumpstart your Amazon business but don’t know how? We can guide you step by step through easy-to-understand video instructions for your Amazon business must-haves. We’ve got everything you need in one place -- from setting up your Amazon account to shipping your items to Amazon fulfillment centers. Go to Start FBA Today to start your exciting Amazon journey.
Grow Your Amazon Business!
Thanks for tuning into this week’s episode of The Amazon Files, the show to help Amazon seller along their business journey one step at a time with your hosts and Amazon experts, Amy Feierman and Kristin Ostrander. If you enjoyed this episode, head over to Apple Podcasts, subscribe to the show and leave us your honest review. Don’t forget to share your favorite episodes with your friends on social media! Use the codeword COST to join us on Facebook. Each week we host a live discussion on how to grow your Amazon business. Don’t forget to check out our website and subscribe to our mailing list for even more resources.