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Starting an Amazon FBA Business – How Much Does It Cost?

Do you want to know exactly how much it cost to start an amazon fba business? If YES, here is a detailed cost analysis for starting an amazon fba business and raising finance.

Having provided you with a:

  1. Amazon FBA Industry Overview
  2. Market Research and Feasibility
  3. Amazon FBA Business Plan
  4. Amazon FBA Marketing Plan
  5. Amazon FBA Name ideas
  6. Amazon FBA Licenses and Permits
  7. Cost of Starting an Amazon FBA Business
  8. Amazon FBA Marketing ideas

We will consider how much it cost to start an amazon fba business from scratch including the operating costs. Starting an Amazon FBA business with private label can be somewhat expensive; this is so because on the average, you are expected to lease large warehouse facility or yard and also purchase delivery trucks and vans.

You should make provision the amount needed to furniture and equip the office, the amount to purchase the required software applications and internet facilities, the amount needed to pay bills, promote the business and obtain the appropriate business license and certifications.

How Much Does It Cost to Start an Amazon FBA Business with Private Label?

When it comes to starting a small scale Amazon FBA business with private label / e – commerce company, the following expenditure should guide you;

  • The Total Fee for incorporating the Business in the United States of America: $750.
  • The budget for Liability insurance, permits and license: $2,500
  • Cost for payment of rent for warehouse facility for 12 month at $1.76 per square feet in the total amount of $105,600
  • Cost for warehouse remodeling (construction of racks and shelves) – $20,000
  • The Cost for equipping the office (computers, software applications, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al): $5,000
  • Budget for start – up inventory – $50,000
  • The Cost of Launching your official Website: $600
  • Budget for paying  at least 4 employees for 3 months and utility bills : $70,000
  • Additional Expenditure (Business cards, Signage, Adverts and Promotions et al): $2,500
  • Miscellaneous: $1,000

Going by the report from the research and feasibility studies conducted, you will need about $250,000 or less to set up a small scale Amazon FBA business with private label in the United States of America

You will need over five hundred thousand U.S. dollars to successfully set – up a medium scale Amazon FBA business with private label / e-commerce business in the United States of America. If you are considering starting a large scale Amazon FBA business with private labels / e-commerce company, then you should look towards budgeting from seven hundred United States dollars and above.

Financing Your Amazon FBA Business

Starting an Amazon FBA business with private label can be cost effective especially if you choose to run the business from your home, share office space with a friend or make use of virtual office. Securing a standard office or warehouse facility is part of what will consume a large chunk of your start – up capital, but if you choose to start the business on a small scale, you may not have the need to go source for fund to finance the business.

No doubt when it comes to financing a business, one of the first thing and perhaps the major factors that you should consider is to write a good business plan. If you have a good and workable business plan in place, you may not have to labor yourself before convincing your bank, investors and your friends to invest in your business.

Here are some of the options you can explore when sourcing for start – up capital for your Amazon FBA business with private label;

  • Raising money from personal savings and sale of personal stocks and properties
  • Raising money from investors and business partners
  • Sell shares to interested investors
  • Applying for loan from your bank / banks
  • Pitching your business idea and applying for business grants and seed funding from donor organizations and angel investors
  • Source for soft loans from your family members and your friends.
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