Starting an Amazon business can be highly profitable, but many new sellers underestimate the true startup costs involved. The cost to start selling on Amazon varies depending on your business model, inventory size, and advertising budget.
From inventory purchases to FBA fees and advertising budgets, understanding the full cost structure is essential before launching.
In this guide, we break down the real cost to start selling on Amazon in 2026.
Amazon Individual vs Professional Seller Plan
Amazon offers two account types:
Individual Plan
- $0.99 per sale
- No monthly fee
Professional Plan
- $39.99 per month
- Required for advanced selling features
Most serious sellers choose the Professional plan according to Amazon’s official seller pricing page.
Inventory and Product Cost
Your largest startup expense will likely be inventory.
Example:
If your product costs $8 per unit
And you order 500 units
Inventory cost = $4,000
Inventory size dramatically impacts your Amazon startup cost.
Amazon Referral Fees
Amazon charges a referral fee on each sale, typically around 15% depending on category. Amazon charges a referral fee on each sale, typically around 15% depending on category. See our full breakdown of Amazon referral fees by category to understand exact percentages.
This is not a startup fee, but it affects pricing from day one.
FBA Fulfillment and Storage Fees
If you use Fulfillment by Amazon (FBA), you’ll pay:
• Pick and pack fees
• Shipping fees
• Storage fees
These fees reduce margin and must be calculated before launching. For a detailed breakdown of pick, pack, and storage charges, review our complete guide to Amazon FBA fees.
Advertising Budget (Amazon PPC)
Most new sellers allocate a launch budget for Amazon PPC.
A common beginner range:
$300–$1,000+
Advertising is not mandatory but is often necessary for visibility. Before running ads, calculate your break-even ACOS to avoid scaling unprofitable campaigns.
Realistic Amazon Startup Cost Example
Small private label example:
Inventory: $4,000
Professional plan (3 months): $120
PPC launch budget: $600
Miscellaneous (shipping, packaging, branding): $500
Estimated startup cost: ~$5,200
Some sellers start smaller with wholesale or arbitrage models.
How Much Money Should You Start With?
Many private label sellers start with:
$3,000–$7,000
Wholesale and retail arbitrage sellers may start with less.
Your startup cost depends heavily on business model and product type.
Hidden Costs New Amazon Sellers Forget
New sellers often overlook:
• Product photography
• Trademark and branding fees
• Returns and damaged inventory
• Long-term storage fees
• Software tools
The hidden cost to start selling on Amazon increase the real cost to start selling on Amazon.
Calculate Profit Before Launching
Before investing, calculate:
• Referral fee
• FBA fee
• Product cost
• Advertising cost
• Target margin
Use our:
This helps determine whether your product idea is financially viable.
Frequently Asked Questions
Can I start selling on Amazon with $1,000?
It is possible with certain models like retail arbitrage, but private label typically requires more capital.
Is Amazon cheaper to start than Etsy?
Amazon usually requires higher upfront inventory investment.
For a full profitability comparison between both platforms, see our Amazon vs Etsy guide.
What is the biggest startup expense on Amazon?
Inventory is typically the largest upfront cost.