How Much Does It Cost to Become an Amazon Seller? Step-by-Step Guide

Amazon is one of the largest online marketplaces in the world, offering millions of sellers a platform to reach global customers. If you’ve ever thought about starting your own e-commerce business, Amazon is an excellent place to start. But before diving in, it’s important to understand one critical aspect: How much does it cost to become an Amazon seller?

While the costs can vary depending on your business model, product choices, and marketing strategy, this article will walk you through the common expenses you can expect when starting how much does it cost to become an Amazon seller.

Step-by-Step Guide: How Much Does It Cost to Become an Amazon Seller?

Here is some important information about how much does it cost to become an Amazon seller and marketing strategy.

1. Amazon Seller Account Fees

The initial expense you’ll face is creating an Amazon seller account. Amazon offers two types of accounts:

• Individual Plan: There’s no monthly subscription, but a $0.99 fee applies to each item sold.
• Professional Plan: You’ll pay a flat rate of $39.99 per month in 2025, whether you sell one item or many.

Which one should you choose?
For those planning to sell fewer than 40 items monthly, the Individual Plan is a solid option. But if you’re serious about building a business and plan to sell at scale, the Professional Plan offers better value and additional features like access to advertising, reports, and bulk listing tools.

Initial Cost Estimate:

• Individual Plan: $0 upfront
• Professional Plan: $39.99/month

2. Referral Fees

Amazon applies a referral fee to every product you sell. The fee is based on a percentage of the product’s overall price, which includes shipping and gift wrapping when relevant.

• Most referral fees vary between 8% and 15%, depending on what type of product you’re selling.
• For example, clothing typically has a 17% referral fee, while electronics are around 8%.

Initial Cost Estimate:

• Varies by product, but expect 8%–15% of your sale price.

3. Fulfillment Fees

You also need to decide how to deliver your products to customers:

• Fulfillment by Merchant (FBM): You handle storage, packing, & shipping.
• Fulfillment by Amazon (FBA): Amazon manages storage, packaging, and shipping of your products, with a fee attached.

FBA Fees typically include:

• Fulfillment Fee: Calculated based on the dimensions and weight of the item.
• Storage Fee: A monthly charge determined by the amount of space your inventory takes up.

For example:

• A small, lightweight item might cost about $3–$4 per unit for fulfillment.
• Storage fees range from about $0.75 per cubic foot during off-peak months to $2.40 per cubic foot in the peak holiday season.

Initial Cost Estimate:

• FBA Fulfillment: $3–$10 per unit
• Storage: Varies with size/volume

4. Inventory Costs

If you’re not using a dropshipping approach, you’ll need to buy inventory upfront.

Inventory costs depend heavily on:

• The product you choose
• Quantity ordered
• Supplier terms

A small first order (say 100 units) could cost anywhere from $500 to $5,000 depending on the product’s cost price.

Tip: It’s often smarter to start small to test your market before investing heavily in inventory.

Initial Cost Estimate:

• Typical starting inventory: $500–$3,000

5. Product Listing & Branding Costs

Product Listings: While listing a product on Amazon itself doesn’t cost extra with the Professional Plan, you might want to invest in:

• Professional Photos: High-quality images help improve conversions. Expect to pay $100–$500 for a professional photo shoot.
• Copywriting: You can hire freelancers to craft optimized product descriptions for around $50–$200.

Branding:

• To register your brand with Amazon, you’ll need a trademark that’s already been registered.
• Trademark costs can range from $250 to $500 (through the USPTO), and you might pay more if you hire legal help.

Initial Cost Estimate:

• Product Photos + Copywriting: $150–$700
• Trademark: $250–$500 (optional initially)

6. Marketing and Advertising

A common mistake among new sellers is believing that products will sell on their own. In reality, competition is fierce on Amazon. Investing in Amazon Pay-Per-Click (PPC) ads is almost a necessity.

Amazon PPC:

• Initially, you should expect daily costs of around $5 to $20.
• Monthly PPC budgets typically range from $150 to $600 or more.

Other optional marketing expenses include:

• Social media ads
• Influencer collaborations
• External traffic campaigns (like Google Ads)

Initial Cost Estimate:

• Minimum $150/month for Amazon ads

7. Miscellaneous Costs

Other costs you might encounter include:

• Software Tools: Platforms such as Helium 10, Jungle Scout, and Keepa for researching products and optimizing listings. Expect $30–$100/month.
• Business Licenses/Insurance: Some categories require liability insurance. Business formation (like LLC) might also have a one-time cost ($50–$500 depending on your state).
• Barcode Fees: If you sell private label products, you’ll need UPC codes (GS1 barcodes cost around $250 for 10 codes).

Initial Cost Estimate:

• Software: $30–$100/month
• Business Setup: $50–$500 (one-time)

Total Estimated Initial Costs to Start Selling on Amazon

Here’s a rough breakdown:

Item	Cost Range
Amazon Seller Plan	$0–$40
Inventory	$500–$3,000
Product Listing & Branding	$150–$700
Fulfillment & Storage	$3–$10 per unit
Marketing (PPC)	$150–$600/month
Miscellaneous (software, license)	$100–$600

Grand Total Estimate:
Low-end startup: ~$1,000–$1,500
Higher-end startup: ~$3,000–$5,000+

Your actual expenses will, of course, depend on the decisions you make for your business. Some people bootstrap their Amazon businesses with as little as $500–$1,000, while others invest $10,000+ to launch bigger.

Final Thoughts

How much does it cost to become an Amazon seller? Starting an Amazon selling business requires some upfront investment, but it’s not unreachable for most aspiring entrepreneurs. With strategic product selection, careful budgeting, and smart marketing, it’s possible to build a profitable brand without breaking the bank.

Take your time to research products, understand all the hidden fees, and plan your budget carefully. Amazon can be an incredible platform for building wealth and freedom—but like any business, success requires investment and smart execution.