Are you thinking about selling on Amazon? If so, you’re in good company, as it’s the most popular e-commerce website in the world. But, like with any business, there are some start-up costs to consider. Here’s a definitive list of the required costs to start selling on Amazon.
Article Breakdown
Samples
In order to have a look at your products from different angles, you need samples. Samples are also sent for product testing and quality control. Some sample fees include the cost of production, so if you’re prototyping a new product it may be good to get in touch with the supplier before placing the order so that you are aware of this.
Shipping
If you want to start selling on Amazon, you need to think about logistics. Shipping fees will vary depending on the supplier and product you’re shipping. For example, for heavy equipment transport, you might need a heavy goods courier.
Inventory
Inventory can be considered the cost of buying your products before selling them on Amazon. When you start selling on Amazon, you need to have a stock buffer so that you can fulfill orders as soon as they are placed.
Storage
If you are selling perishable items or are handling items with an extended shelf life, it is likely that you will need to store these products. Storage costs are about $350 per pallet per month.
Packaging
Your supplier should be able to help with this, but you may need to purchase packaging materials if you’re selling individually packaged items on Amazon. Packaging can be expensive, so it is worth finding the most cost-effective supplier in the early stages of your business.
Promotional giveaways
If you’re looking to get more sales on Amazon, it’s likely that you will want to invest in promotional giveaways. Depending on the product and supplier, this can range from $0 – $20 per unit. This is one of the required costs for starting to sell on Amazon.
Marketing
Although it is now possible to sell items on Amazon without marketing, most businesses have found that they need to invest in some form of promotion. This can be done via paid advertising or by producing your own content.
Email marketing software
A reliable email marketing platform will allow you to send out professional-looking emails directly from your Amazon seller central account.
Sponsored ads on Amazon
Sponsored Product Ads enable Amazon merchants to bid for ad space of keyword searches. These are the required costs to start selling on Amazon.
Amazon Professional Sellers Account
The Amazon Professional Sellers account enables you to advertise your product on the Amazon platform, therefore reaching more potential customers. Platforms like Facebook and Instagram are also good channels for advertising your products, but they do come with additional costs that aren’t related to selling on Amazon. If you have an existing social media following, you can also use relevant hashtags to generate traffic, so this is a good way to get started with a low monetary investment.
UPC code
Although you can create your own UPC code through a third party, this will invalidate the official number, and it can be difficult to obtain another one. In order to start selling on Amazon, you will need a UPC code.