How much is the initial investment for opening a store on Amazon? How much money is required?

To do business on Amazon, the investment required varies depending on the business model. If you are selling goods in a distribution model, you don’t need to invest a lot of money. So how much is the initial investment for opening a store on Amazon?

1. Necessary costs

Necessary costs refer to the fees and other basic expenses that new sellers must pay when they start selling on the Amazon platform.

01. Basic Fees

Before launching Amazon, the budget mainly includes computer equipment fees, router fees, network broadband fees, printer fees (Agemei cross-border e-commerce recommends purchasing a thermal printer with a budget of less than 1,000 yuan), VISA or MASTER dual-currency credit card processing, and payment account processing fees.

Summary: Based on a full year, it is about 4,000 yuan.

02. Costs of registering a store

You can find an agent to register a company, or you can go to the local Industrial and Commercial Bureau to handle it yourself. The main expenses involved are: engraving the official seal: 50-100 yuan on Taobao. Public account: annual fee is about 1,000 yuan (depending on the bank). Agency accounting: the market price is about 2,000 yuan a year.

Summary: Based on a full year, it is about 3,050 yuan.

03. Domestic logistics costs

That is, the cost of transporting your goods from the factory to the first leg of your cooperation.

2. Procurement Cost

01. First batch of stocking costs

Regarding the first batch of stocking costs, this needs to be calculated based on your product selection, financial strength and resource situation. Some novice sellers have sufficient funds and may prefer high-priced products when selecting products, which will raise the threshold to a certain level and the competition will not be so fierce. On the contrary, some sellers do not have sufficient funds and need to start with low-priced products, so the first batch of stocking costs may be much less.

02. Product packaging fee

Regarding product packaging fees, if you want a better user experience, or have your own brand, you may need to design your own packaging box or packaging bag, customize your own logo, instructions, etc. This depends on your own positioning.

In addition, there are sales costs on the platform, including the platform’s monthly rent and product commissions, FBA first-mile logistics fees, payment fees, etc.