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What It ACTUALLY Costs To Sell On Amazon FBA In 2022

Published on: December 2 2022 by Tatiana James

What It ACTUALLY Costs To Sell On Amazon FBA In 2022

What It ACTUALLY Costs To Sell On Amazon FBA In 2022

hey everyone i'm tatiana and today's
video is an
updated 2021 version of how much does it
cost to start an
amazon fba business so i've been doing
these videos for the last few years
did one in 2018 2019 2020 and here we
are today
2021 and my purpose here is not to try
and convince you to start an amazon fba
business
i'm not going to be biased with what i
share with you today so there's not
going to be any
any manipulation of numbers uh trying to
make it seem like it costs
less than it actually does um the fact
is that
i want you guys to understand what the
reality of starting this business
looks like and the more details you have
the better you're able to determine
whether or not it's the right fit for
you
and this is just this is a wonderful
business selling on amazon is extremely
lucrative
there are many different methods to
selling on amazon many different models
fba is one of those private labeling is
one of those
but this one although there is no
ceiling and that's the beauty
of it you can really earn as much like
there's no limits with what you can earn
when you build your own brand
however the barrier of entry is that
there is a minimum
cost and not everyone can afford to
start this business
so by the end of this video you're going
to get clarity on how much it's going to
cost
to start this business just to get the
ball rolling and then you can start
reinvesting those profits into the
business and start growing the business
um so i'm going to give you the facts
here and
let's get started because it's going to
be a bit of a long video all right so
i have two categories over here i have
the mandatory and the optional category
i'm going to be starting over here with
the mandatory category
these are just fees these are costs that
i believe
are going to be pretty much a must for
everyone starting this business
so in order to sell on amazon you do
have to be a member of their seller
platform
and it costs it costs you money you have
two options
you have the option of becoming a
professional seller
or an individual seller now the
professional seller pays a monthly fee
which is 39.99 and the individual seller
still pays a fee
they just don't pay monthly fee so they
pay the fee per
item that they sell so usually you know
if you're selling us
a good amount of uh products per month
it makes more sense to
pay the 39.99 membership fee rather than
paying per item because that
actually adds up if you're not really
selling much like a couple units a month
then yeah you don't need to get the
professional
so i'm going to put down here 39.99 as
the
membership fee now in the past i used to
recommend
starting with an individual seller
account set up your
seller central account and then later
once you're ready to ship your inventory
to amazon
then upgrade it to the professional
selling account so that you can save
39.99 per month
i don't recommend doing that anymore and
the reason being is because i found
that it's actually become quite
difficult to upgrade your account
in the past it was simple they would
just easily upgrade your account
but now when you request to upgrade from
individual to professional
sometimes they'll do a bit of an account
audit and it can actually take
weeks or months for this upgrade and
this is you know time is money
especially if you have
inventory ready to be shipped to the
amazon warehouse
with fba you're going to want to get
that upgrade soon so i recommend just
starting off with the professional
account
it's just going to be much less hassle
for you
and the last thing you want is issues
with your seller central account because
you're really dependent on amazon
okay now the second thing that i'm going
to recommend is a product
research tool so in the past before
everyone knew about selling on amazon
the way that us old people
would do product research is we would go
to amazon and we'd browse through
amazon catalog page by page by page and
trying to do some manual math to figure
out which products are selling well
but over the last six years there have
been
a multitude of amazing
tools that service amazon sellers that
just make your life so much easier
and help you find incredible products
now you've probably already heard
of two of the most popular tools one is
jungle scout and the other is helium 10.
these are two of the most popular
product research tools but they do
far more than just product research so i
do highly recommend them
now i'm actually going to be putting
this in the mandatory category and
although it's tiknically
optional believe me guys whatever you're
paying for these tools is going to be
worth it because they're going to help
you
find products better quality products
they're going to help you find products
that you probably wouldn't be able to
find
doing some manual research and uh
also it's gonna save you so much time
and you know what if you are
working full-time right now and you're
doing this on the side if you can only
commit an hour two hours per day or per
night
then you wanna make the most of your
time and these tools will certainly help
you
so i have put two product research tools
here jungle scout
uh you can get it for a hundred and
forty nine dollars for
three months and that's what the 25
discount code
if you use the link in the description
box of this video that's what's going to
get you that 25
discount code otherwise you're going to
be paying full price
with helium 10 you can get it for 48.50
per month
and that's what the 50 discount code so
again these are my affiliate links
they're going to be linked in the
description box below
um you'll be able to get these discounts
uh if you use those links
um so i'm going to use jungle scout just
for the sake of this
example uh jungle scout for three months
all right so the
next thing that you're going to have to
pay for invest in are samples
so once you've used your product
research tools you found the product
that you want to sell on amazon
you've contacted suppliers now you're
going to need to get
samples from the suppliers i recommend
contacting
as many suppliers as possible because
obviously you know the more suppliers
you contact the higher your chances of
success with
any one of those suppliers but once
you've narrowed down that list to your
top
three suppliers i recommend getting at
least
three samples so one three different
samples from different suppliers
and the reason being is because your
goal on amazon is you want to make sure
that you're selling the highest quality
product
it's you know selling on amazon is not
like how it was
you know a number of years ago where you
can get away with selling a low quality
product nowadays everyone's got a high
quality product on there and if your
product
is not meeting the standards the quality
standards you're just not going to have
success
so get samples from three different
suppliers you're going to notike
immediately the differences when you
receive those samples
which one's higher quality which one's
less poor quality
i also recommend that you buy your
competitors products
so go to amazon find out who the best
sellers are of that partikular product
that you're going to be selling
buy their products so that you have
something to compare it to
you can compare the manufacturer's
products with your top competitor
product
and then you can tell okay if this is
the best seller obviously
this is a product that people like to
buy obviously
it's high quality let me compare it to
the samples from the manufacturer
so how much your sample is going to cost
you it depends
each supplier has their own policies
some suppliers will send them to you for
free you just have to pay for shipping
some suppliers will make you pay for the
samples
um and so i'm going to put on average
about fifty dollars
per sample so if you get three samples
that's about a hundred and fifty dollars
and usually the fifty dollars is
including the shipping
and what you can also do to kind of save
money on the shipping
so if you're if you're ordering these
samples internationally say from china
and you ship a sample
from china to the us by air
um you know that can add up so you can
actually
reconcile you can hire a company to
store all of your samples in one
shipment so that
all of your samples can arrive at a
facility and then they all get shipped
to you in one shipment so that you save
on shipping costs
so that's an option but i'm not going to
write that down so here we go
samples so about a hundred and fifty
dollars for
all three samples all right so now we
are on to inventory
this is going to be by far where most of
your money is going to be spent it's
going to be on your inventory
but it's really hard to give you just an
estimate on how much your inventory will
cost
because it completely depends on the
product that you choose to sell on
amazon
when i first started selling on amazon i
was broke i really did not have much
money
and so i looked to sell one of the
cheapest products i could possibly find
that still had demand
and i was able to source that from my
manufacturer for 20 cents per unit
and it was also super lightweight so the
shipping was extremely inexpensive
so you know you have the option of
buying a product that's 20 cents a unit
but there's also products that you can
pay for fifteen dollars a unit or
twenty dollars a unit so it really does
depend on what you choose and this is
where you have to
you can be smart about this it depends
on what your budget is
if you've got lots of money to invest in
this business that's great i mean the
more the merrier
and you know you can choose products
that are more expensive
and it might be advantageous for you to
do that because a lot of people maybe
can't afford
to source product that's ten dollars a
unit twelve dollars a unit and if you
can
that just means that there may be less
competition for those products
and also you're probably going to be
making a higher profit margin
but if you have a tight budget and you
still want to get started you want to
get your foot in the door
you want to start learning this business
you still can
you're just going to have to look for
products that are a little bit less
expensive that you can manufacture at a
cheaper price
like i did so the option is yours the
choice is yours
you just have to be intelligent about
when you're sourcing products or what
you're looking for
so i'm gonna say like on average i would
say most people buy
get products that are about five dollars
per unit so that's what i'm going to use
for this example here
with an estimate about five dollars per
unit and
it depends also on how much inventory
you're going to order
so oftentimes when you reach out to a
manufacturer they're going to tell you
their moq
which stands for minimum order quantity
and that minimum order quantity is the
minimum order that you have to place
so for some it's 100 units for others
it's
500 units for others it may be a
thousand units
now you can negotiate a little bit with
this um
but you know not too much uh you can try
and negotiate and be like hey you know
this is the first time i sell
this product on amazon and especially if
you're not making like modifications to
the product
then you are able to negotiate a little
bit more and lower that moq if it's high
but at the same time you don't just want
to order the bare minimum amount of
inventory
you do have to forecast and try and um
forecast how many units you're going to
be selling and
because you really don't want to go out
of stok that's probably one of the
biggest
struggles when people first start
selling on amazon and they're having
initial success
and then they're out of stok and it can
backfire on you
you know it's not the end of the world
it's a good problem to have it's better
than not making any sales at all
but at the same time if you're getting
gaining momentum and all of a sudden you
have to halt that stops
that can be detrimental because also
amazon doesn't like that
amazon wants their customers to have the
best experience possible
and if they see that customers are
clicking on your listing but then
they're not able to buy your product
that can actually hurt your rank so you
have to be intelligent about how many
units you order
but you also have to consider what your
budget is so for this example i'm going
to say
five dollars a unit 500 units i think
that's very realistik
you could do less you could do more but
i think this is a very realistik
estimation for inventory cost all right
so the inventory is going to cost about
2500
again it can be more it can be less i'm
just trying to kind of play
on average here okay the next cost your
artwork
so i'm going to start with your
packaging your packaging design
for your product now when you are
sourcing with a manufacturer for the
first time
they're going to show you some basic
packaging that's included with your
product
it's a very basic packaging that comes
free at no additional cost for you
and i would encourage you to go ahead
and use that packaging
at this point in time i don't think it's
necessary to go and buy premium
packaging
and explore like a bunch of different
packaging options unless you have the
money to do that
otherwise it's not the best use of your
money right now because you have yet to
prove your concept let's like make some
sales first
but what you can do as you can customize
the packaging for your brand
that is an option so the way that you
would do that is oftentimes the supplier
will provide you with like the
dimensions of the packaging
and then you can send those dimensions
off to a graphics designer
and give them some ideas of what you
want your packaging to look like
your color theme your font
your logo what you want on the packaging
the graphics designer will do the work
for you
now i recommend using a platform called
fiverr.com
i'll link it in the description box
below i also made a video
detailing how i use fiber and i show you
a lot of the logos in the packaging
that i've had created for my brand in
the past so if you wanna sneak peek to
see
some of my sketches and some of the
things that i've created through fiber
you can click the link in the
description box for that video but on
fiverr the reason i recommend it is
because
it's extremely affordable you can get
packaging logos artwork almost
anything on there at a really great
price
and you just hire these freelancers who
are quite talented
um you just have to give them some
direction so they are all
graphics designers they're artists they
they have talent they know what to do
but if you give them some direction it
really can help
enhance the quality of the work that you
receive sometimes fiverr gets a bad
rap about how it's you get low quality
work but that's never been my experience
my experience has been if you give
direction you can have really amazing
quality work
to date it's really the only place i use
for logos design work all of that stuff
so on fiverr you can get your packaging
done
for roughly 25 dollars
okay i just realized i was standing
right in front of the words that i was
writing out for you guys so i hope you
can see them
okay so packaging is roughly 25 um i
also included a logo on here you're
going to want to get a logo made for
your brand because you're just going to
want to have that stuck on your on your
branding that's going to be important
for you
the logo is 15 roughly on fiverr
on fiverr you can get a logo for 15
they'll give you three different
concepts and you just choose the one
that you like best and you can ask them
for revisions if you want
you can also get a logo done for 500
from 99 designs
so again like you can spend as little or
as much as you want depending on what
your
what your budget is but my experience
has been 15
will suffice for a great logo all right
so the next thing we're going to tok
about
are your amazon photos so these are the
photos that are going to be displayed on
your
amazon listings so when people search
for your product they view your listing
they look at your photos
now your photos are extremely important
probably one of the most
important elements of your entire
listing because you could have the best
products in the world
but if you don't know how to market them
properly people aren't going to buy them
and on amazon most people they don't
actually take the time to read your
description or your bullet points
but they look at your photos and so your
photos can make or break a
sale and your photos are even more
important than your packaging
that's why for packaging i don't really
recommend that you go all out with your
packaging not at this time
it's not the best use of your money
because you have to think about it in
retail if you were selling this product
on walmart and someone was
looking at the shelf and they were
looking and trying to choose between
your product versus someone else selling
something similar
then your packaging matters your
packaging is everything your packaging
might be the difference between someone
grabbing your item or just like
glancing over it but when it comes to
e-commerce
people aren't going to see your
packaging but what they will see are the
photos that you have displayed on amazon
and you don't even have to include a
picture of your packaging in those
photos
if your packaging doesn't look nice
later down the road
as you start making more money with your
business and you have more profits that
you can invest into other areas of the
business to improve things
then you can start working on the
packaging and the reason you would do
that is because it's going to help
with your branding experience it's going
to help the customers experience
ultimately your goal as a seller is you
want to make those customers as happy as
possible
you want to add so much value to them
that they're overjoyed
by the fact that they were able to
purchase your product and so
for example with my brand it took me two
years before i stopped using the
manufacturer's packaging
and i upgraded to my own type of
branding type of packaging
and so then every product would be
coming with this beautiful tissue paper
that with gold font all these beautiful
affirmations were written
on it these cute little cards it even
came with a free draw
drawstring bag and so i i invested more
into the packaging because i wanted my
customers to feel a certain way
when they open the product when they
receive the product they feel like
excited that they got the product they
get certain vibes from it
and in fact it actually helps with
marketing because then
when your packaging is great they want
to share it with others
because it elevates their status and
whenever something's status elevating
people share it with others
and so i get tags on instagram and on
facebook and people just sharing it with
their friends
because they enjoy the experience so
it's not the priority right now if
you're tight on money
but down the road you can always improve
that what is the priority
are your amazon photos those are
important and in the past
i would recommend you know you can just
take your own photos
with your phone with your camera and
that's good enough
because that's what i did and again in
the beginning when i started this
business i really did not have much
money i did
everything myself literally i was the
graphics designer i was the photoshop
person i was the marketer i was the
copywriter
i was everything however uh
nowadays the competition is higher on
amazon and people know what they're
doing
and they've got amazing quality photos
so don't skip out
skip out on this this is important
so if you use fiverr.com which again
i'll be linked in the description box
below
you could pay around a hundred dollars
for your amazon photos maybe like a
hundred dollars
two hundred dollars for your amazon
photos or if you want a more premium
service you could go to
productphotography.com for example they
are all about taking professional amazon
photos it can get
as expensive as 1295 dollars
so again it can be as little or as much
as you want
but honestly i'm i'm good with the fiber
photos and
really my tip here if you want to save
money on this
what you can do if you have the latest
iphone or just a
quality camera you can take the pictures
of your product yourself
just make sure that they have amazing
lighting perfect lighting
on a solid background take the pictures
of your product take it from different
angles then what you can do is you can
send it to a freelancer on fiverr
for 3d rendering where they will render
the product they'll photoshop it to make
it look
perfect and just perfect the product and
enhance the quality
remove the background so that it's on a
white background and then you can send
it to another
person on fiverr to create the amazon
images because
essentially the images on amazon a lot
of them it's just a lot of text on the
images
a lot of photoshop inserting the picture
here inserting it into a lifestyle shot
and so that way you can really save
money if you don't want to send your
products to a company like
productphotography.com where they have a
professional setup and they'll do all of
that for you
so there are ways that you can save
money or if you don't even care to like
do that work yourself you can outsource
it so
a hundred dollars for your amazon photos
so the next one on the list
are barcodes barcodes so these are the
upc barcodes that you will need
in order to sell on amazon in order to
create your listing on amazon you will
need a upc barcode
which helps amazon identify your product
now a barcode in the past
people would buy these things called
resale barcodes
and they were super inexpensive because
they're not tiknically
authentik barcodes but they kind of do
the job and
amazon would accept them and those
barcodes were really cheap like 10 bucks
for like 20 barcodes
but since a couple of years ago amazon
has announced that the only barcodes
that they
recognize and accept are gs1 barcodes
i'll link the website for that in the
description box below so if you're going
to be buying a barcode
for your product to sell on amazon you
have to buy it from gs1
otherwise you risk you know not
following amazon's terms of service and
you risk
your listing being suspended or possibly
even your account being deactivated
so it you know you take if you want to
save money you get the
speedybarcodes.com or or just resale
barcodes
you can but do it at your own peril and
so the cost of the barcode
is 250 and i know it's a lot
and that's why a lot of people are very
hesitant about it and asking do i have
to get that barcode
and it's it's really up to you but
amazon's terms of service says yes you
do
um and it's 250 but not for one barcode
it's one to ten barcodes so tiknically
you can get
10 barcodes but if you're just selling
one product you only need one barcode
because you don't need a different
barcode for each product
if you're selling markers a pack of
markers
and you have a thousand units it's one
barcode for
the thousand units not each one of those
thousand units needs a different
barcodes
so you'd pay 250 dollars to get one
barcode you'd only need one pro
barcode per product sold on amazon per
product listing
so 250 is what i'm going to put here and
i also have to mention that there's a 50
annual fee for gs1 to renew your barcode
which is kind of silly but
that's just the price of it okay so the
next two on the list
shipping and bond so how are you going
to be shipping your products from your
manufacturer
to the amazon fba warehouse you have two
options you have air shipment or you
have c
shipment if you're doing it
internationally if you're sourcing
locally then you'll just ship it via
truck it's going to be inexpensive
you can even use amazon's discounted
carrier rates
so if you are sourcing your products in
the country in which you wish to
sell then your shipping is going to be
really inexpensive don't even worry
about that
if you're shipping internationally it's
going to be more expensive so
c or air those are your two options air
is always going to be more expensive
than c
it's faster it's easier
c can take about two months for your
shipment to arrive depending on what
country it's shipping from
but you save a tremendous amount of
money doing it that way so if you can
plan ahead with your inventory
antikipating your shipments
and doing some proper inventory
reporting so that you know when to order
in advance
then you're going to save a lot of money
it's going to help with your profit
margins if you can continuously ship by
sea
now for your first shipment i recommend
shipping by air simply because it's
simpler
you want to get started as soon as
possible with selling your products on
amazon
and you don't have to worry about the
headaches of a c shipment
however you have the option of doing it
by sea as well i'm putting an
estimate of about four hundred dollars
for a shipment
this is so so rough this estimate
because it depends on your product
entirely if you have a very lightweight
product
your shipping is going to be cheaper if
you have a small product
your shipping is going to be cheaper if
you have a heavy product more expensive
the dimensions are big or the dimensions
are a wonky it's going to be more
expensive
so just keep that in mind when you are
doing product selection
that if you want to save on you know the
shipping fees you're gonna also have to
take that into account with the product
that you pick
because you might find a fabulous
product but it's five pounds per unit
um and that's just gonna eat your profit
margins when it comes to the shipping
now the next thing i put here is a bond
so in order to ship your goods from one
country to the next you're going to need
a bond
and bond costs about 85 per
shipment or you can spend 500 for the
bond and it works for the whole
year so 500 per year i do the 500
per year because i do many many
shipments per year if you're only doing
a few shipments then the 85 dollars
could work
but if you're gonna be doing more than
you know four shipments five shipments
then you're definitely going to want to
pay for the yearly bond rate which is
500
okay so the last thing on this list of
the mandatory costs
i'm putting the amazon ppc this stands
for pay-per-click advertising
now a lot of people might put that on
the optional like you don't really need
to advertise your product
but honestly guys if you're not doing
ppc when you first launch your product
you are having a huge disadvantage you
really want to turn on your amazon ppc
learn
how to do ppc not just the automatik
campaigns but the manual campaigns
so you're going to want to spend at
least two hundred dollars
just to get the ball rolling because you
have to recognize that when you first
launch your product on amazon
your product's probably going to be on
like the 30th page of the amazon search
results
and i don't know about you but for me as
a customer i don't move past
page three you know even page one
sometimes i just want to make my buying
decision
as quick as possible i'm not going to go
through 30 pages
and so the beauty of ppc on amazon is
that you pay
amazon a certain fee and you can your
product
for whatever keyword you're paying for
can
show up on the first page as a sponsored
product
and the beauty of it is that you don't
pay unless someone clicks on your
listing so if someone sees your product
on the first page even though
tiknically your product should be
shown on the 30th page you've but you've
paid for a sponsored
ad and they click it then you would pay
for that click and so it's well worth
the money because it's
it allows you to get discovered by
customers
and especially when you're first getting
started and you're ranked
so poorly you want to get as close as
possible to page one
and the way that you do that is by
getting those sales and getting those
reviews
so i'm putting that here in the
mandatory category
but you know you have to understand that
ppc
you know it's a bit it can be a bit
frustrating because it can eat all of
your money
if you don't know what you're doing and
sometimes it takes
some money initial investment of money a
few hundred dollars
to really start to understand what your
campaign strategy will be
what your ad strategy is to figure out
which keywords perform best which ones
don't
so it takes a little bit of plain around
to figure out
you know how to do your campaigns and
requires a bit of investment
so these are all of the things i have in
the mandatory category
and i'm going to put a total here for
you
okay so the total here is three thousand
eight hundred and twenty eight dollars
and
eighty nine cents so this is what i
calculated from the 39.99
amazon membership fee three months of
jungle scout for
a hundred 149 fifty dollars for product
samples twenty five hundred dollars for
inventory 25 for packaging
fifteen dollars for your logo a hundred
dollars for your amazon photos 250 for
your barcode
400 for shipping 85 for the bond and 200
for your amazon ppc so the grand total
is 3
828 now again this
is more of an average um however
i would say you know at minimum you want
to have at least twenty five hundred
dollars to get started
that would be the minimum so you can get
by with twenty five hundred dollars
you're just gonna have to save a little
bit of money with certain things
um but i'd say you know to feel
comfortable this is probably the the
cost that you want to be looking at here
so if you don't have this money right
now i don't want you to feel discouraged
i just want you to understand that this
is the reality of the situation
and it's better to not get started with
this um because then you might get in
over your head and things become
expensive
and you're no longer able to continue
with your business and then it's a total
loss
um so it's better to save up you know
maybe get a second job or just save some
more money
until you have enough to finally get
started with this business
and as i mentioned at the beginning of
this video there are many other ways
that you can start making money on
amazon or online so that you can save
that money to later invest into a
private label business
and the reason you want to do that is
because these other business models
yes they're great they can help you get
cash faster
and you know requires a bit less of an
investment
but the private label model tends to
have one of the greatest opportunities
in terms of really building a real brand
where the sky is the limit
and you can later sell those assets you
can later sell the
the brand um the company for seven
figures even eight
figures so the opportunity is huge here
let's move on to the optional fees over
here okay
so the first thing i have here is a
third party inspection fee
for 300 now what this is when you
find a manufacturer you place an order
with the manufacturer you pay them your
deposit
and then when they tell you hey tatiana
the goods are ready we're ready to ship
the products wherever you want them to
go
amazon wherever before you ship those
products
out what you want to do is you want to
hire a third-party inspection agency
so this is a company that will come to
your manufacturer's warehouse
and they will inspect the products to
make sure that they are up to the
quality
standard based on what you agreed upon
initially with the contract
and um the cost for this is roughly 300
it can be more or less depending on how
many units you want them to
inspect so you can have them inspect for
example 10
of your inventory um so if you're
selling you know if you order 500 units
50 units like 50 random units and
inspect those and if they're great then
great that they pass
or you can have them inspect the entire
inventory all 500 units
so depending on how much what percentage
of the inventory you want them to
inspect it will cost
more i would recommend that you know the
reason you do this is because this is
the first time you order from that
supplier
you you're yet you're building you're
establishing a relationship
you're brand new you don't know them
they don't know you you haven't
established a lot of trust yet you're
building rapport
so um you don't know if the products
that they sent you with that sample
are going to represent the products that
are you know they manufactured for you
and so you want to make sure that before
you send those products to
amazon that they are up to standard
because if they're not
and if they're low quality what's going
to happen is they're going to arrive at
the amazon warehouse
customers are going to order them you're
going to get negative reviews
and that's the last thing you want as a
brand new seller
to start getting negative reviews
because that's really just going to
destroy
your listing and your conversion rate
and even
seller performance metrics so um it's
really worth
getting an inspection at least for the
first time that you place an order with
this supplier maybe even the second time
but beyond that it's not necessary
because then you've established a level
of trust
and you don't necessarily need to do
that so i put that there is optional
some people choose not to do it they're
good with just sending their products to
the amazon warehouse
or some people what they do is they send
the products from the manufacturer to
their house
and they will personally inspect it
themselves and then save the money
so they go through the inventory check
everything and then they send it to
amazon's warehouse
you should only do that if you live in
the country where you're going to be
selling your products
so if you're going to be selling in the
u.s then go ahead and send it to your
house
because it's going to be cheap for you
to send it from your house to the amazon
warehouse
using amazon's discounted carrier rates
but if you are going to be
living in a different country uh than
where you're selling then you don't want
to do that because then you have to pay
to ship it from your supplier to your
house from your house to the
to the uh warehouse and that's going to
be very expensive
if it's international shipping so um
that's that
i just thought about one thing that i
mentioned i forgot to mention for you
guys
i remember in my 2020 video there's a
lot of confusion about the barcodes
uh and how do you get your your barcodes
to your manufacturer how do they stik
them on the products
and i want to let you know that i filmed
a video just for this
i will link it in the description box
below but in summary
what you can do with your barcodes is
you can either just send them to your
manufacturer
and your manufacturer will print them
stikers and stik them on your products
for you
most of the time they won't charge for
this or they might charge you per unit
just depends on the manufacturer and
your relationship with them
sometimes they just want to give you
something for free or
what's better is that you actually send
it to your
your packaging graphics designer and
they
they embed the barcode into the
packaging design
and so that way when the packaging is
printed it's already printed with the
barcode embedded into the packaging
that way there's no additional time used
to stik the
stikers onto the products or additional
expense to have your manufacturer
or amazon because amazon offers for 20
cents a unit they're gonna stik
the barcodes on your product for you if
you forgot to do it but that's quite
expensive
so that's pretty much how it's done but
check out the video in the description
box below if you're confused about
barcodes
especially when you start to understand
that there's two different barcodes
there's a upc barcode f and sku stiker
it can be very confusing so my video
will clarify that
so the next one on the list is a freight
forwarder
a freight forwarder is going to help you
facilitate your shipment
so i strongly recommend that you choose
to work with a freight forwarder if
you're going to be shipping by sea
because it's quite complex there's a lot
of paperwork that needs to get done
and also when your inventory is in a
boat for like a month or two months
you can start to get nervous especially
if you've never shipped products before
but when you work with a freight
forwarder you have peace of mind because
they're on top of it
they're always monitoring they're
checking up on things they're making
sure that
you know the products are going to get
delivered and they also know to check
for insurance and all of that stuff
so i strongly recommend working with a
freight forwarder
if you're going to be shipping by sea if
you ship by air not as many
hassles you may not need one but you can
still work with a freight forwarder
for air shipping so they're gonna
facilitate your shipment from
a to to z um from
from a to z from point a to point b and
um the fee is anywhere between you know
a hundred dollars to two hundred dollars
for the brokers fee
i put a hundred and twenty dollars here
um just
as an average and um you have to
understand there's other
there's some other costs like messenger
fee and the duties oh i forgot to
mention the duties
those are things that you're going to
have to also include
from your cost with shipping are the
duties
because when you import anything into
the united states or any country if
you're importing from one country to the
next there are going to be duties that
you have to pay for that shipment
how much the duties cost completely
depends on what you're selling
and the cost of what you're selling how
much is it worth that
inventory and so what you can do to try
and
estimate the duties is you can find out
what
what the hts code is for the product
that you're selling
and you can try and estimate the duties
i'll put some links in the description
for you guys
if you want to try and estimate your
duties so the freight forwarder here is
about 120 bucks
how do you find a freight forwarder you
just do a google search
but i will recommend for you my personal
freight forwarder whom i've been working
with for like the last
five years they're an amazing company
they're i think a relatively small
company which is why i like them
such personalized service honest rates
and just really really amazing so
i will recommend them they're called sea
riders and you can email
amazon seariders.com
to inquire about their freight
forwarding services
they also have a bunch of other services
and they can help you get your bond
they can help you with your duties all
of that stuff
so i definitely recommend them i will
put the email
in the description box below and if you
decide to work with them you can get
twenty dollars
off of your first freight uh off of the
broker fee
so that broker fee can be about a
hundred dollars so you take twenty
dollars off of the broker fee
uh with your first shipment if you
decide to work with them
via my recommendation so um
i'll put that here okay so amazon see
writers.com 20
off if you mention my name all right so
the next optional
expense is an amazon fba training
program
now i put this here as optional because
a lot of people do decide to start this
business without any
formal education or training however i
wish i could put this in the mandatory
category because it is
my most genuine recommendation that you
do invest in a training program this
business
this is a real business guys you're
going to be investing nearly four
thousand dollars to start this business
and you want to make sure that you're
starting this business with a solid
foundation
with a good understanding of what to do
and there are so many moving pieces with
this business
it's there's more than meets the eye and
the devil's in the detail
and so i find that oftentimes people who
they perform best when they can have
step-by-step guidance
otherwise they start to fall into
analysis paralysis
because they don't have the confidence
and the certainty
to know whether or not the decisions
that they're making are the right
decisions or to know what the next steps
are
so if you can do your research i'm not
going to give you any
like i'm not going to tell you what
course to get but do your research
because people leave reviews people are
open and honest if they had a bad
experience with a course they will post
about it if they had a positive one they
will post about it
you can try and get referrals from
people but do your research to find a
comprehensive program
something that's step by step that's
very detailed and updated it's important
because
amazon's constantly changing their
policies are constantly changing
so you need a program that's updated now
i put a thousand dollars to five
thousand dollars here
why because you can get a program for
under a thousand dollars
but believe me you get what you pay for
and like i mentioned you're building a
real business here
you want the best education you can and
i've been through a lot of amazon fba
training programs
i get free access to a lot of them
because i have a lot of people that
want me to promote their program on my
youtube channel and so i go through
their course and
often times i'm just disappointed with
what i see um
but it's it's you know makes sense if
you're buying a 300
course you can't expect them to be
investing
so much time and resources into creating
that course
so a thousand dollars to five thousand
dollars is the price range
i do have two recommendations for you
after all the courses that i've been to
two of them that have been my fav
favorite throughout the years
and i will link them in the description
box below one of them that's at the one
thousand dollar price range it's called
marketplace superheroes
and the one that's at the five thousand
dollar price range is called the amazing
sewing machine
so yes they are they're very different
but the amazing selling machine is the
best recommendation i have
but again you get what you pay for and
if you can't afford the five thousand
dollars
then the marketplace superheroes would
be my
second recommendation that would be kind
of a runner-up
program but i do recommend that you
invest in a program
if you can't invest in a program don't
have the funds to invest in one
then i would say you know really do your
research
get my free training which is i have a
four-part
video series that anyone you guys can
all access it go to tatianajames.com
fba the link will be in the description
box below
in the free training that i provide for
you guys i
cover a lot of details about selling on
amazon
it's not a course so you're not going to
get something comprehensive
but it's enough to help you understand
what you're going to need to do next and
whether or not this is the right
business model for you
because it's not for everyone as i
mentioned before
so i do recommend that but it's an
optional choice everything will be
linked in the description box for you
down below
okay the next thing here is your product
launch so there
are many different tactiks or tikniques
uh
methods of launching your product on
amazon to have initial success
and you know one of those things you
might do something like a viral launch
where you kind of give your product away
at a discount
and then you get those initial sales and
then oftentimes people come and leave
you positive reviews
so you kind of do some product giveaways
you can work with influencers so that
they can
represent your pro your brand share your
product with their following
so there are different strategies here
so i'm just putting this in here just
for you to take into account
you're going to need about 200 maybe
worth of inventory
maybe more depends on how much your
product is to give away
just throughout the product launch okay
and then over here i have the
trademark so trademarking your brand
name
this is not something that you have to
do right away because if you think about
it the purpose of trademarking your
branding
is to protect it so that nobody else can
use that name
but if you are just starting out your
brand new seller
you know you've made up your brand name
chances are you know
someone else isn't gonna randomly come
up with that brand name
at the point where you may want to
consider trademarking it is when you
start to become
more of a popular seller on amazon you
have competition people see your brand
name
and they can see if it's trademarked
they might want to try and trademark
your name
so then it becomes more important to
trademark your name
once you start having some success with
your brand
also a reason why you might want to
trademark your name is because
on amazon there's something called brand
registry
and brand registry kind of registers
registers you
as a brand on amazon and you get certain
perks from that
for example you get enhanced brand
content
on your listings so if you've ever seen
those listings where they have beautiful
images and videos on their page
they have something called brand
registry and in order to apply for brand
registry
you need an active trademark so that's
you may consider
getting a trademark at that point keep
in mind it does take up to six months to
get your trademark approved
so you may want to start factoring that
in earlier on
however it's not like the biggest
priority right now now how much does it
cost to trademark
well in order to file your trademark
it's 225 dollars per class
a class is like a category so if you're
trademarking for
like kitchen utens utensils that would
be like one class
or if it's um you know like it depends
on what it is that you're trademarking
so about 225 dollars per class
now if you live within the us um
then you can trademark your your name
yourself you have the right to do that
and it's very easy to do it seems
complicated on the website but honestly
it's quite simple they have tutorials
on the website i can also link the
website down below for you with those
tutorials
however if you live internationally you
are no longer
allowed to trademark the name yourself
you have to hire an attorney to
trademark
for you so that's where the attorney
fees get come in here
and to hire an attorney a regular
attorney might be about a thousand
dollars
however you can use fiber you can use
fiber
to um to hire an attorney via fiber
and if you hire an attorney by a fiver
it's about 235 dollars
for them to prepare the trademark
and then you would go ahead and file it
on your own
so just take that into account that's
how much it costs
the last thing i'm going to mention is
setting up a legal entity
so if you wish to sell on amazon you
don't have to set up a legal entity
this is a corporation an llc ltd
whatever you know
entity you want to create it's not
mandatory you can sell as a sole
proprietor as an individual
it's your choice it's recommended to set
one up because there are usually tax
advantages to setting up a business
having write-offs for all of these
expenses right otherwise
you know you're personally going to be
paying for these things
so there are advantages to it but there
is a cost to setting up an entity
it depends on what state you live in and
in states like kentucky it's like 40
bucks
states like california it's 400
something like that so it depends on
where you live
and you don't need a lawyer or anything
to set that up for you you can easily do
it yourself
so that's an optional expense you don't
need one to sell on amazon but it is
something to consider all right everyone
so that wraps up this video
these are the costs of selling on amazon
i may have missed a thing or two here
but i think that this is quite
accurate here and again like it can be
more or less than this but this would
probably be about the
average and so you know i don't want to
discourage you with this video the
purpose is just to share with you the
reality of the situation
um that this is a wonderful opportunity
but you do need some cash to get started
with this
and it's better to have this cash
available before you get started
because again if you get started and
then you don't have enough money to pay
for your marketing
or pay for you know different services
or
your shipping you know then you start to
get caught and it becomes really
challenging
so hopefully this was helpful for you
guys if you enjoyed it make sure you hit
the thumbs up button
leave me a comment in the comment
section down below
i would love to know about where you're
at with your amazon fba business
have you started it yet are you still
doing research
are you looking for products are you
working with the manufacturer
are you already selling how many
products are you selling i always love
to know more about you guys
please share with me some information so
i can get to know you better
and if you haven't yet started your
amazon fba business
and you want help then as i mentioned
earlier i have a
four-part video training series that's
absolutely free
and you can get it by going to
tatianajames.com fba
or clicking the link in the description
box below in that video series i
really try and explain to you the whole
process of selling on amazon i
show you how to find products using
jungle scout
how to find the best products on amazon
so it's quite uh
explanatory and you're gonna get a lot
of information
through that and it's totally free so
thank you so much for watching
and i will see you in the next video
check out all the links in the
description box
uh there are lots of resources there for
you guys take care