Starting Your Own Amazon Business: Where to Begin?

Amazon FBA is becoming more and more popular, so it doesn’t surprise me. Nevertheless, you must learn how to start a wholesale business on Amazon before you can begin. With its many years of great success, Amazon is the world’s leading online retailer. 

Currently, over 8 million sellers are listed on the platform worldwide, with 2 million of them being active sellers. As a result, more entrepreneurs are interested in selling on Amazon. Perhaps even you are included in this. You will want to know how much it costs for you to sell on Amazon before you begin.

Small and medium businesses have clearly benefited from Amazon’s success. Even if you don’t have an Amazon business, this alone should be enough to encourage you to do so. Alternatively, as a small business web host, Hostinger allows you to start your own business.

How to Start a Business on Amazon

I’d like to give you a quick breakdown of what Amazon will cost you in the beginning.

Product research

Research the product thoroughly before you begin selling on Amazon. Finding the right product to sell will be easier if you conduct your research beforehand. You must comb through the entire Amazon marketplace to do this. Comparison shop, check out other vendors’ products, and discover how much money they make per month.

An appropriate product research tool is required for this. You have a lot of options. The company also offers Novel Rank and Sales Rank Express, among others. This type of research tool costs between $40 and $100 per month.

Product samples

The next thing you have to do is source the products after doing your product research and figuring out which is right for you. It is important to find wholesale suppliers for Amazon, but before you order hundreds of units, make sure you get product samples first. As for the product and shipping costs, expect to spend $75 to $100. A product sample costs about this much on average. You’ll have to consider what product you’d like to outsource.

The best products that you can start selling are those that cost between $18 and $20. Using this average price, you will still be able to make a significant profit while still attracting buyers. A second tip is to set your prices at a reasonable $25. The customer will now be able to take advantage of free shipping right away. If you offer free shipping on your products, your customers will prefer yours over others.


Your inventory needs to be purchased once your samples have been approved. The minimum quantity you need to purchase from suppliers is usually set by the supplier. Purchasing a product from a manufacturer should require at least 500 units, which varies from one manufacturer to another. The cost per unit will determine the total cost. Initial inventory costs around $2,000, however.

Over 500 units can lower your costs. However, you can still order fewer units with a higher per-unit price if you are in need of funds.

InvenetoryLab is one such amazing inventory management platform for Amazon sellers. Click here to read about Inventory lab.

Signing up on Amazon: The First Step to Starting an Amazon Wholesale Business

When you sign up for Amazon, you have two options. There are two types of seller accounts available: individual and professional.

Individual seller account

If you don’t have much inventory to begin with, it is recommended that you open an individual seller account. Each item costs $0.99, and the maximum number of items per month is limited to 40.

Professional seller account

Registering for a professional seller account is recommended if you have a large inventory. You can do as many sales as you like with the $39.99 monthly fee. Amazon Seller Central also provides access to inventory management tools and bulk uploads. 

UPC Code

Your products need barcodes in order to be sold on Amazon. The FNSKU will be generated as soon as it has been received. You must first have a GTIN in order to obtain a FNSKU. UPC codes are used for this purpose.

UPC codes are basically required. You will need to register for one for $250.  

Amazon FBA fees

In the early stages of your business, using Amazon FBA for order fulfillment is the best option for you. Your administrative, inventory, and packaging costs will be reduced. The fulfillment costs and inventory costs will need to be paid for, however.

These costs are as follows:

  • Item size: $2.41
  • $3.19 for large items
  • Large (1-2 lb) items: $4.71
  • If more than 2 pounds, the cost is $4.71 plus $0.31 per additional pound

Amounts and time periods will determine inventory costs. In January to September, it costs $0.64 per cubic foot; in October to December, it costs $2.35 per cubic foot.


Aim for as much traction on Amazon as possible when you’re just getting started. It’s important to remember that hundreds of Amazon stores are competing with you here. To make your product launch successful, you must stand out.

Amazon Pay-Per-Click is the answer to this problem. In just 30 days, you can make your products visible for just $10 per day. It is likely that your sales will increase throughout this period. In addition to helping you with your reviews, this is a great idea! If you sell more products, your chances of receiving Amazon reviews will increase.

Total Cost of Selling on Amazon

The hardest part of starting a business is always getting started. In particular, if you plan on selling on Amazon, this is true. You will be required to invest at least $5,000 to start your Amazon business, after factoring in inventory costs, storage, product research, and seller fees. The sum of 500 small units is a low estimate if you expect to get no more than that. Remember that product unit size and season will determine how much you pay.

Key Take-away

Amazon is a great platform for selling your products. The key is to put in a lot of effort. To make your business successful, make sure that you are 100% committed to it before investing thousands of dollars.

Do you want to start a business on Amazon selling wholesale goods? There’s no better time than now! 

Roshan Jha

Roshan Jha is a contributor at Imagestation with a strong background in eCommerce and Fulfillment by Amazon (FBA). With his experience, he excels at breaking down complex online selling concepts into easy-to-understand articles. Roshan is passionate about guiding others in the world of digital sales, offering clear and practical advice. His writings are particularly valuable for those looking to navigate the world of online marketplaces and Amazon’s fulfillment system.

Leave a Comment