Your Amazon store can be the simplest entry point into e-commerce today. But, how much does it cost to open an Amazon store?
Amazon offers two selling plans. The Individual plan is free to open, but charges $0.99 per item sold. The Professional plan costs $39.99 monthly and includes bulk listings, advertising tools, and sales reports – ideal for high-volume sellers.
While the Individual and Professional plans set the foundation, your actual costs are shaped by inventory, shipping, advertising, and scaling strategies. Let’s break it all down so you can build a profitable store from day one.
Why Opening an Amazon Store Is a Great Business Opportunity?
An Amazon store creates a real opportunity for both new and experienced sellers. It offers access to millions of buyers, simplified store management, and powerful tools to help grow your business.
Reach Customers Worldwide
Amazon isn’t just a local marketplace. It puts your products in front of buyers worldwide. As soon as you list an item, shoppers across different countries can find it. That level of reach helps you grow faster than traditional storefronts, and you don’t need to worry about setting up international systems to get started.
Easy Store Management
An online store running often becomes overwhelming, especially when you’re handling everything on your own. But Amazon takes care of many of the hard parts. With programs like FBA, they handle storage, shipping, and even returns. You don’t need a warehouse or a shipping team. Instead, you stay focused on sourcing products, improving your listings, and serving your customers.
Boost Your Sales with Ads
Amazon’s ad tools help new sellers stand out. You can promote your listings with keyword-targeted ads that appear right when shoppers search. You also get full control over your budget and performance. That means you can start small, test what works, and scale when you’re ready. You won’t need to rely on outside platforms to grow.
How Much Does It Cost to Open an Amazon Store?
You’ve seen the quick cost overview – now let’s break down what those numbers mean. Each cost affects how your business runs and scales, from seller fees to product sourcing.
Below, we’ll go deeper into every expense so you can plan your budget with clarity and confidence.
Amazon Seller Account Fees
If you’re planning to sell on Amazon, the first cost to consider is the seller account fee. Amazon offers two main selling plans, each with its own pricing and features:
- Individual Plan: This plan costs $0.99 per sale and is best for those selling fewer than 40 items per month. There is no monthly fee, but it lacks advanced tools.
- Professional Plan: It costs $39.99 per month and is ideal for those selling more than 40 items per month. It includes bulk listing, reports, and advertising options.
Business Registration and UPC Codes
Before listing any products, you must register your business and secure product barcodes. Forming a legal business entity like an LLC can cost anywhere from $50 to $300 depending on your state. This step legitimizes your operation and protects you legally and financially.
Alongside registration, Amazon requires UPC barcodes for most product listings. The most reliable source is GS1, where prices typically start around $30 and can increase based on how many codes you need. These are foundational costs – often overlooked – but essential to getting your store live and compliant.
Inventory Costs
Inventory is usually your biggest upfront expense, and the total depends entirely on how you source your products. If you’re doing retail arbitrage, you might start with just a few hundred dollars by finding discounted items in local stores. Dropshipping removes the need for inventory investment, but margins are lower and control is limited.
Wholesale requires buying bulk products, often around $500 to $2,000. For private labels, where you create branded products, costs can easily reach $5,000 or more when you factor in manufacturing, packaging, and minimum order quantities. How much you spend here shapes your entire business model and profit potential.
Product Photos and Listing Optimization
Your product listing is your storefront on Amazon, and first impressions matter. Investing in professional photos and well-written descriptions directly affects how many people click and buy. High-quality images usually cost between $50 and $500.
Writing a clear, keyword-optimized product description is just as important. It helps your listing appear in search results and converts browsers into buyers. Skimping here can lead to poor visibility and low sales, no matter how good your product is.
Branding and Packaging Design
If you’re building a long-term brand, visual identity matters. Custom logos, branded packaging, and product inserts help you stand out in a crowded marketplace. While not required to sell on Amazon, these extras can build trust and create a more premium customer experience.
Branding costs vary widely but typically range from a few hundred to a couple thousand dollars. For private label sellers, this investment can make their products feel more polished and professional.
Fulfillment Costs
Once your product is ready to sell, you need a plan to get it into your customer’s hands. Amazon offers two options: Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM), each with its own set of costs and responsibilities.
With FBA, Amazon stores your inventory and handles all the packing, shipping, and customer service. In exchange, you’ll pay a per-unit fulfillment fee that ranges from $3 to $5 for standard-sized items. Larger or heavier items can cost significantly more.
In addition, there’s a monthly storage fee based on the space your products occupy, starting at $0.75 per cubic foot but increasing to $2.40 per cubic foot during peak seasons like Q4. Long-term storage fees may also apply if your products sit unsold for too long. If you overstock or choose bulky products, these costs add up quickly, so careful inventory planning is key.
With FBM, you store and ship the products yourself. This gives you more control and potentially higher margins, but covers all shipping costs and logistics management. Shipping rates vary based on the package size, weight, and delivery location, ranging from $3 to $15 or more per order. You’ll also need to consider the cost of packing materials, shipping software, and time spent processing orders.
Marketing and Amazon PPC Costs
Getting your product listed on Amazon is just the start. To actually drive traffic and generate sales, you’ll need to invest in marketing, primarily through Amazon’s built-in advertising system, known as Pay-Per-Click (PPC).
With PPC, you bid on keywords so your product shows up in sponsored placements. Every time someone clicks your ad, you’re charged a fee. Costs per click can range from $0.50 to over $3.
A realistic monthly budget for new sellers usually falls between $200 and $1,000, depending on how many products you’re advertising and how aggressively you’re bidding. In competitive markets, sellers often spend more just to maintain visibility.
Early on, PPC is critical not just for making sales, but for building listing history and reviews, which in turn help organic rankings. Without advertising, your listing may not be seen at all, especially if you’re in a saturated category.
Beyond PPC, other marketing costs can include influencer partnerships, external social media or Google Ads traffic, and promotional tools like coupons and Lightning Deals. These are optional but can give you a strong boost during launch or seasonal promotions.
Accounting and Software Tools
As your Amazon business grows, so does the need to stay organized, especially when tracking revenue, expenses, and taxes. While you can manage things manually initially, most sellers eventually invest in accounting software to save time and avoid costly mistakes.
Amazon sellers commonly use tools like QuickBooks, Xero, or GoDaddy Bookkeeping. These platforms help you track your profit margins, organize expenses, monitor inventory value, and prepare for tax season.
Monthly subscriptions usually range from $15 to $50, depending on your desired features. Some tools also integrate directly with Amazon, automatically pulling in your sales and fee data so you don’t have to do everything manually.
While not required to start, having the right financial tools in place early on can help you make better business decisions and stay compliant when tax time comes around. For sellers planning to scale, this is one of those behind-the-scenes costs that quickly pays for itself.
Which Plan Should You Choose?
You should choose based on what you want to achieve with your business. If you’re just starting and want to test a few products, one plan will suit you.
If you’re ready to sell at scale and grow a brand, the other will give you more tools. Amazon lets you switch plans anytime, so you can start small and upgrade when ready.
Choose the Individual Plan if,
- You’re listing a few products to test what sells.
- Sales happen occasionally, not on a regular schedule.
- Advanced tools like ads or analytics aren’t part of your strategy.
- Total sales stay under 40 units per month.
- You want to avoid ongoing monthly fees.
- Product listings are uploaded manually, one by one.
Choose the Professional Plan if,
- You’re consistently selling more than 40 units each month.
- Bulk listing tools are needed to manage multiple SKUs.
- You plan to run Amazon PPC or sponsored ad campaigns.
- Business insights and sales reports are part of your growth strategy.
- Inventory is updated often, with frequent order volume.
- Team members or VAs help manage the account.
Can You Switch Plans Later?
Yes! Amazon lets you upgrade or downgrade anytime. If you start small and grow, you can switch from Individual to Professional when it makes financial sense. Likewise, if sales drop, you can move back to Individual to avoid monthly fees.
Key Tools and Services for Amazon Sellers
A successful Amazon business depends on using the right tools and services. These solutions help sellers improve listings, track sales, manage inventory, and study market trends. The right choices can save time, cut costs, and support long-term growth.
Product Research Tools
Success starts with what you sell. Data-driven tools make it easier to choose winning products. They provide estimated sales, pricing history, and keyword insights.
These tools help sellers avoid unprofitable products and find winning opportunities. Depending on features, most product research tools cost $30 to $100 monthly. Beginners can start with free trials before committing.
Keyword and Listing Optimization Tools
Optimized listings attract more buyers. MerchantWords, Helium 10, and KeywordTool.io help find the best keywords for product titles, bullet points, and descriptions. They improve visibility and increase conversions.
Keyword tools ensure listings rank higher in search results. Subscription costs range from $20 to $80 per month, depending on the level of data provided. Sellers should choose tools based on their budget and product category.
Inventory and Sales Tracking Tools
Inventory control and sales tracking play a big role in running a smooth Amazon business. Tools like InventoryLab, Sellics, and Zoof make it easier to monitor stock, track profits, and plan restocks. These tools help avoid stockouts, prevent over-ordering, and keep your operations on track.
Also, the tools which are listed can help sellers avoid losing sales due to low inventory. Pricing varies from $40 to $200 per month. But it depends on features and business size. New sellers can start with basic plans and upgrade as they grow.
Fulfillment and Logistics Services
Many sellers struggle with shipping and storage. FBA simplifies the process by handling logistics, while 3PL services like ShipBob provide alternative solutions.
FBA is best for sellers who want Amazon to manage logistics, but fees vary based on product size and weight. 3PL services work well for sellers who want more control over shipping costs.
Advertising and Marketing Tools
Product visibility depends on innovative advertising. Platforms like Amazon PPC and Perpetua make running and optimizing campaigns easier.
Most ad tools cost $50 to $300 per month, based on features and budget. Sellers should start with small ad budgets, then increase spending based on performance.
Accounting and Tax Management Tools
It is important to track profits and manage taxes. QuickBooks, Xero, and A2X help track sales, expenses, and tax reports. They simplify financial management and ensure compliance with tax regulations.
These tools reduce errors and save time. Pricing starts at $20 per month for basic features, with advanced plans costing $50 to $100. Sellers should choose tools based on business size.
Frequently Ask Questions(FAQs)
Startup costs range from $500 to $15,000+, depending on the business model. Dropshipping and retail arbitrage require less, while private label businesses need higher investments for branding, inventory, and marketing.
FBA is ideal for scalability and Prime eligibility, but it comes with storage and fulfillment fees. FBM gives more control over shipping and avoids FBA fees but requires manual handling of orders and customer service.
The process takes 1 to 3 months, which includes account setup, product sourcing, branding, and shipping. Marketing and listing optimization are ongoing efforts to improve visibility and sales.
Helium 10, Jungle Scout, and AMZScout help with product research, while Perpetua, Zon. Tools, such as Amazon PPC assist in marketing and ad management. These tools optimize listings, track trends, and boost sales.
Use Amazon PPC, SEO optimization, and external traffic sources like social media, influencers, and email marketing. Running discounts and Lightning Deals also helps attract more buyers and improve rankings.
Conclusion
Amazon gives both new and experienced sellers a strong platform to grow. Success depends on knowing your costs, using the right tools, and choosing a model that fits your goals.
Success on Amazon requires planning, patience, and continuous learning. Invest in the right tools, optimize your listings, and use smart marketing strategies to stand out. Keep improving and adapting as your business grows.
Now is the time to take action. Start small, stay consistent, and scale over time. With the right approach, your Amazon store can become a profitable and successful business!
