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How Much Does Amazon FBA Cost?

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How Much Does Amazon FBA Cost?

Welcome to my How Much Does Amazon FBA Cost blog post. Jeff Bezos is the richest man in the world for a reason. It’s because Amazon takes a lot of money if you’re selling a product through Amazon FBA. In this blog post, I’m going to be going over some of the costs very specifically of selling products on Amazon FBA and what you can expect to be paying. So I’ll detail everything. The 4 major costs in this blog post. So check it out. Let’s go.

Introducing Myself :

I am Raju Bhadra working with online marketing since 2012. At the very beginning, I worked cash my link CPA company by promoting watching movies. Then in 2014, I worked with Clicksure and Clickbetter. I promote their products by reviewing. After that, I was outside a few months for my LLB and LLM graduation. Then After 2016, I started to promote WarriorPlus and ClickBank Product and The Four Percent Group. After 2017 I started to release products in WarriorPlus. I released over 50+ quality products in WarriorPlus. Now at present, I am promoting various JVZoo products and My main focus on LEGENDARY MARKETER because I LOVE High Ticket Program and everyone should join a High Ticket Program.

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I am honestly saying my one and only purpose is to help people who want to make money online. When I was a green newbie I had searched for everything here and there and most of the time I don’t get the exact answer to my questions. So, I decided if I can then I will make such type of blog from where people can easily get their basic questions to answer. I will try my best to provide the best answers to your question.

What is Amazon FBA?

So Amazon FBA, if you’re not familiar fulfillment by Amazon. Amazon FBA is when you as a seller ship products to Amazon and have Amazon sell them for you. Now there are a lot of costs involved in selling through Amazon. There are over 6 million people that are selling products through Amazon’s marketplace and there’s a lot of people making a lot of money. 

How Much Does Amazon FBA Cost?

How Much Does Amazon FBA Cost?
How Much Does Amazon FBA Cost?

But before you believe all the hype and the gurus saying that it’s easy and all you need is a few thousand dollars to get started. I’m going to detail the real costs of getting started with an Amazon FBA based business. So you can have more realistic expectations of what to expect. 

First – How Much Does Amazon FBA Cost

So the first thing that you need to do when you sign up for Amazon FBA is it’s $39.99 per month, okay? To get started and you can find this on Amazon’s website here. If we go over here, you’ll see kind of in small print it says $39.99 per month and then it says plus additional selling fees. 

How Much Does Amazon FBA Cost

Second – How Much Does Amazon FBA Cost

The second cost here. This is all from Amazon’s actual website that I’m taking all of these numbers from. Now the second cost you should be aware of is the actual shipping costs. The picking and packing order costs and that runs anywhere from $2 to $5 here as you can see. Let’s just take this for example. For an average-sized item, you’ll be spending $2.48 cents to ship your product with Amazon. So that’s an additional $2.48 per unit to use Amazon’s fulfillment services in selling your product. So this is another cost that you just kind of incur.

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Third – How Much Does Amazon FBA Cost

The third cost you need to be aware of is when you’re shipping through Amazon FBA, there’s a storage cost. So when you start an Amazon business, you’re going to buy the product well usually from like China or someplace like that and you’re going to ship it from China all the way to Amazon’s warehouse. Now you pay the shipping costs from China to Amazon’s warehouse in Tennessee or wherever that is. But you’re also going to pay a storage fee by the square foot.

So every square foot that you use in Amazon’s warehouse, they’re going to charge you and if we see that right here we see 69 cents per square foot. January through September. And around Christmas season, you’re going to be paying more like $2.49 per square foot. But let’s use $0.69 per square foot as an example. So you’re going to pay $0.69 per square foot, okay?

How Much Does Amazon FBA Cost

Now if you’re starting a business with any significant volume, you’re going to need a lot of square feet in Amazon’s warehouse to ship the product and while you’re building your store, while you’re trying to market the products that you’ve put on Amazon, it’s going to take time. What’s likely going to happen is your products are going to be sitting around in Amazon’s warehouse for a little while you’re waiting for those products to sell. So in all the while, you will be paying money. For every square foot that you were using in Amazon’s warehouse. So keep that in mind.

Four – How Much Does Amazon FBA Cost

Now the fourth cost you need to be aware of is a pretty big one. And that’s actually what fees does Amazon take for selling your product. And typically that’s 6 to 20%. You know I just found this through Google. So the fee range is typically 6 to 20% but the average is 15%. So we can safely factor that Amazon makes 15% of the product, okay? Just for selling your product on their platforms. So Amazon’s making a lot of money. Again, they’re taking a very little risk. They’re charging a pretty small fee just to sell on Amazon. You’re going to pay a per-unit cost for every product that they actually have to pick and pack and then you’re also paying for their warehousing space and you’re paying Amazon 15% off the top. So you have to factor all of these costs before starting an Amazon business.

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Now the upsides of Amazon are that you know Amazon basically does all the marketing for you. You know you put your product on Amazon, they handle the fulfillment, they handle a lot of things for you. But other things you need to be aware of that are costs that are not in Amazon FBA is just to sell on Amazon. You’re going to need a number of things. You’re going to need to have customer service, you’re likely going to need to have a website, you’re going to need to have some sort of support line or mailbox or peel box or something to receive customer feedback and inquiries from. All of this costs you money.

Now the gurus won’t tell you this information. The gurus will say, “You know a man, just spend a few thousand bucks and you can be selling on Amazon and it’ll be going in no time.” But the reality is, that it costs a lot of money to get started on Amazon. Now if you want to start an Amazon FBA business, I would suggest that you have anywhere from $25 to $50,000 to really launch your store. And keep in mind that you’re going to have to test a number of different products before you actually find one that sells well.

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Now the other issue with Amazon FBA is that you have to come out of pocket a lot of money. It’s considered a negative cash flow business. And what that means you have to physically buy the products before you ever sell them. Now what that means is that you might spend $20,000 on buying products before you even see a dime of that back, okay? So you spend $20,000 to hopefully make 30,000. Now, in that case, you have made a profit. But again, you’re coming out of pocket. A lot of money. The one person who makes money no matter what is Amazon. Keep those numbers in mind when you are starting an Amazon-based business. Again, you’re coming out of pocket a lot of money.

It’s a longer-term business. You’re going to have to deal with review fraud, you’re going to have to deal with getting marketing and getting reviews for yourself in the beginning. And you’re going to have to go up against the competition with over six million other people who are doing the same thing and selling products on Amazon. So and possibly more experienced than you. So keep that in mind when you’re selling on Amazon. If you don’t have some sort of advantage, it’s going to be very hard for you to get ahead on this platform.

Final Thought:

So I hope this blog post was helpful and kind of explaining what the real costs of Amazon FBA are. I’m an internet marketer. I’ve been running an internet business since 2012. I’ve been making thousands of dollars. And I’ve worked in a number of different fields but place, where I’ve made most of my money, is affiliate marketing. If you do want to learn more about making money online and even starting an affiliate marketing-based business, which any products it doesn’t require any customer support or fulfillment or any of that jazz. Then check my No #1 Recommendation.

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Raju Bhadra.