hey everyone welcome back today I'll be telling you exactly how much money you
really need in order to start selling on Amazon FBA
how much money do you really need in order to start selling on Amazon this is
a very common question that new sellers always come to me about because
they are worried that they do not have enough money in their bank to start
selling on Amazon I just want to be very open with you about all the hidden fees
in regards to starting your new Amazon journey if you decide to take on this
business and what you need to be prepared for for the months to come
there are a lot of hidden fees that a lot of gurus do not talk about so
hopefully you find this video useful and you can start doing the math and see if
you have enough money in your bank to start selling on Amazon so I know
everyone sells a different product but some products cost a lot less than
others and as a new seller I always suggest new sellers to source a product
that is under $2 around $2 and nothing more because the more money you put out
the bigger risk it is for you to lose it as a new seller and your first product
should always be about learning you have to have that mentality and not have the
mentality that you are going to become rich or make a huge profit off your
first product because chances are you are not
the first product is usually just a big learning curve for you to build some
experience and learn the ropes so hopefully you know what to do for your
second product anyways let's get started with the fees that you need to consider
when you are selling when you are a new seller on Amazon so obviously we have
cost per unit I always suggest new sellers to start with 1000 units if you
order anything less you're going to run out of inventory very quickly especially
if you do a product launch you're just going to end up with a few hundred units
and then you're gonna have to relaunch again which is totally not fun and just
a huge waste of money so as I mentioned for cheaper products make sure you find
a product that is fairly cheap I know my first product was around just under a
dollar it was about 90 cents and that included the packaging and everything
and to me I felt safe I just knew that if I were to lose that money if I were
to lose that money I'm not going to cry myself a river because it's all
part of business you might lose money you might make money and you have to
know what your breaking point is how much money are you willing to lose and
not be totally hurt by it the next thing to consider is customization as I
mentioned the more customization you do the heavier your product the bigger your
product the nicer your packaging with all the fancy bows ribbons and boxes
then the more expensive it will be so try to keep this simple if it makes
sense to your product you have to consider the payment which payment
method you use so on Alibaba you can pay by e-checking or a credit card or do a
wire transfer no sorry a bank transfer and depending
on which bank you use it's going to cost a fee usually it's about sixty to
eighty dollars but for me I do e-checking so it costs me $0 I use
trade assurance and they just debit the money straight from my checking
account so that's zero dollars on top of that there's no hidden fee however
credit cards I believe it's a 2.9% on top of everything that
you owe to your supplier and if you use PayPal which is mainly for amateurs I
think there is even a bigger fee depending on your supplier so you really
don't want to do that in my experience trade assurance e-checking is safe
and it costs you zero dollars to use that method you have to consider the
exchange rate if you are from a different country myself I am from
Canada so every time if I were to use a Canadian bank account I need to consider
the exchange rates i actually i don't use my Canadian bank account I have a
US-based account which saves me a lot of money and I have a separate
video about that if you look previously on my channel you have to consider
product photography so you have to hire a professional photographer in order to
take very nice photos for your products now for me I actually do my own photos
I'm not going to get into detail about that in this
video but you have to consider that and that can cost a few hundred dollars if
you plan to pay someone for listing optimization meaning for them to create
your whole listing for you to make sure all the keywords are fully opt... your listing is
fully optimized with the highest ranked keywords then that's another
fee you need to consider and this fee can go I've seen some people charge 500
600 dollars just to create a listing for you I do this myself and I've
learned to do this myself so I saved that few hundred dollars however if that
is not one of your strengths and you have to pay someone in order
to do your listing then you have to keep in mind that it will cost you a few
hundred dollars to pay someone professionally to do your listing
shipping ok now shipping costs we all know everyone has very high shipping
fees when it comes to shipping your products from China to the US so in
order to save money I strongly advise you guys to hire a freight forwarder a
freight forwarder specializes in shipping the rates are typically lower
than your supplier your supplier is simply just the manufacturer they do not
specialize in shipping they do not specialize in clearing customs for you
so please you guys find yourself a good freight forwarder and they will pick
up your product from your supplier and bring it back to the Amazon
warehouse for a low fee so for me I know typically people say it's six to seven
dollars per kilo to ship from China to US for me my freight forwarder usually
charges me three dollars fifty cents to four dollars DDP shipping by air or by
sea and this depends on your product so sometimes it costs a little more but if
you should use a freight forwarder it's always cheaper than using your supplier
so if you were to ship by sea it's actually a lot cheaper I do this now I actually
ship half by air just so I have enough inventory for the month in Amazon
and the rest goes by sea and I saved myself
thousands of dollars I suggest you guys do this when you are
more experienced with Amazon but right now please consider that shipping is
expensive and it costs a few thousand dollars depending on how much inventory
or how heavy or how big your product is so if you are doing sea shipping or if
you're worried about your air shipment you also need insurance I
actually don't use insurance for air shipping I use insurance for sea
shipping and it's only like twenty five dollars but hey everything adds up on
Amazon right you might need to get an inspector to inspect your products I've
actually never done an inspection before I know that sounds crazy but for me I
really trust my supplier and I have never had any issues with the products
from that my customers buy from Amazon so but if you were to do an inspection
it does cost anywhere between 100 to 200 dollars so please keep that fee in mind
if you are doing a launch sorry not if you are doing a launch when you do your
product launch because you have to launch your product on Amazon in order for
it to rank to the first page to get the most sales it will cost you money
whether that's using PPC or a launch service you need to save at least $500
put 500 dollars away for this whether that's PPC or to pay a launch
service I know Viral Launch alone costs $400
Zonjump costs a few hundred depending on how many coupons you buy so please
please you guys save $500 put it to the side for your product launch on top
of that we have more fees reviews so depending on how much your product costs
and if you need to get some reviews from others you need to pay for that review
and that costs money that adds up for every product for me I always try to get
10 reviews first before my launch so it's 10 times whatever the amount my
product costs Amazon FBA fees there are Amazon FBA fees if you just Google
Amazon FBA fees it'll show you how much money they're taking from you for each product
every time it sells you need to be aware of this to see if you can actually
afford what you're buying auto email subscription you need an auto email
subscription every time you start your business on Amazon because you want
customers to organically write you reviews and they're not gonna write you
a review if there's no email being sent to them requesting for a review I use
feedback whiz I know the basic plan is about 15 dollars if you choose and use
another service that's up to you but please keep this in mind that this is a
monthly subscription and you need to have the money in order to pay for your
subscriptions speaking about subscriptions you might need other
subscriptions like key word subscriptions I know I use seller tools
and word tree and those are monthly subscriptions depending on which package
you decide to go with usually the basic package is good enough however that's
another like hundred dollars that you need to think about when it comes to
subscriptions also your monthly Amazon professional seller account fee is $40 so
again it's another few hundred dollars on top of everything in order to get
your Amazon business going and if you were to really take Amazon seriously and
you're selling well you're seeing your sales steadily be if you have steady
sales on Amazon for a while now I would say maybe after three or four months you
want to think about a trademark and opening up a corporation because you
need that personal protection there are lots of hijackers on Amazon they can
just steal your listing and start selling their own crap and you don't
want that you need to file for a trademark and trademarks can cost
hundreds of dollars I know for me I filed it myself because I had time and
it cost me $225 filing my trademark using TEAS
plus if you decide to hire a lawyer to trademark your brand or logo or whatever
it's gonna cost a few hundred dollars and if you were to open a corporation
it's gonna cost you another few hundred dollars so how much does it really cost
you to start selling on Amazon at least $5,000 I know that's a lot of
money and I know there are a lot of people that tell you you only need
$1,000 or you only need $500 I don't know where they come up with that number
because if you logically think about it shipping alone costs more than a
thousand dollars or just under a thousand dollars depending on how light
or small your product is so you guys please please consider all these fees
before you start your Amazon business I've seen a lot of new sellers make this
mistake not having enough money and then they're stuck and they don't know what
to do and then they have to borrow money and then they owe the bank money and it's
just a huge mess so you don't want to get yourself in this mess anyway I am
going to put this list down below in the description if you want to use it as a
checklist and if you need to think about exactly how much money
you need in order to save to start selling on Amazon so the list is below I
hope you new sellers found this video useful please comment below please
subscribe to my channel and please feel free to ask me any questions if you have any
and please like this video I'll see you guys next time
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