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How Much Money Do You Need to Start Amazon FBA in 2019 - Amazon FBA Costs UK
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- Опубликовано: 17 авг 2024
- How much it costs to start selling on Amazon FBA in 2019 depends on the product you choose and your goals for that product.
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I believe the minimum amount of money it will cost to launch a successful FBA product is approximately £1,500.
This figure is based on an initial order of around 300 units with a landed cost of £3.00 per unit. The product will usually need to be small and light to meet these requirements.
It is important that £3.00 is your landed cost, if you have to pay shipping, customs duty and VAT on top then it will be very difficult to keep your overall spend below £1,500.
Amazon FBA startup costs can vary massively depending on the product you choose. If you are launching in a very competitive niche you will need to order a lot more initial stock in order to carry out a successful launch.
You should consider your Amazon budget before choosing your first product as only certain opportunities will suit your requirements.
I would love to hear how much money it cost you to launch for Amazon product, let me know in the comments below! !
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Never knew about Fiverr. I've checked them out. Thank Darren! 😉👍
Great content as always Darren.
Good to see someone finally giving some clear costings involved for FBA.
Love a realistic breakdown of costs, top quality mate! I would say to people starting amazon maybe don't save up 1.5k/ 2k or however much you would like to start with and put every penny in. Hold a little back if possible for any extra costs you may not have planned for & if nothing else it can help with the re-order :)
Cheers Ryan - agreed mate, the more money you can save the better (there are almost always surprise costs) 👍
I typically don't like watching people who aren't in the states selling in the states due to the fact I hate converting other currencies into usd. And also some accents are hard to understand especially when they speak too fast. But I thoroughly enjoy yours!
Thanks Trinity ❤️
Excellent video once again very informative and accurate advice, I followed the same steps a few months before this vid so good to see I did it correctly and the right way using same method.
Thanks for sharing Ian - glad to hear this approach has worked for others.
I like your video. straight to the point, no bla bla. good information, very professional. I subscribe to your channel. Thank you. Tiered from other people just going on and on and and say nothing.
Thank you, welcome to the channel!
Fantastic video Darren. Congrats on 1k subs as well..been here since 50. Great content and transparency
Thanks John, it's crazy how the channel has grown since way back then - thanks for the continued support!
I really think your breakdown is excellent
Thanks so much for sharing this great video with bigineer like me.
Excellent content honest and True as always great video.
Really helpful Darren as always, keep em coming my friend you really are helping a lot of us just starting our journey!
They'll keep coming 👍😜
Amazing! Thank you! Your videos are very useful
Great Video again Darren, really appreciate the content.
can you recommend a product photographer?
I'd recommend trying to find a photographer local to you with a good portfolio of product photography - this will allow you to take part in any location shots and get a good idea of the type of photos they can take of your product.
@@FBA-Elite thanks for the advice its really generous of you to take time out and reply to someone who is on the verge of starting their amazon fba journey.
Hey Darren, great video, Not sure if your aware that if you are a private label seller you can apply for GTIN exemption, so you don't need to pay for GS1 barcodes and then just use the ASIN barcode that amazon issue, this is something I have done since the start with no problems 🤑
Hi Jack, thanks for the contribution - how did you find the process of applying for the GTIN exemption, did you have to wait long for approval?
@@FBA-Elite Extremely easy, normally get a confirmation email the next day, however, you have to apply in each category per brand but once you are exempt in that category for the particular brand you can add any product under the same brand name
Superb video! Thank you very much.
Love that video Darren, great information!
Great info Darren and sharp ending :-)
Cheers Denis, trying to bump those like stats 😎
Thank you Mate excellent information.
Super helpful, thanks. I think I would be willing to invest around £2k for my first product. I am a student and have decent savings but not a ton of money to invest. I have found a course that looks good for under £200 which I think would really help me as I have no clue about ecommerce.
Good Luck, £2k should be enough to have a good crack at your first product!
really useful, completely transparent!
Valuable info. Thank you!
Another belter Darren !! Can I ask how was your experience with the supplier providing DDP? Were there any issues at the Amazon end? DDP sounds great but you are relying on the supplier to get the packaging criteria right for Amazon to accept.
I've used DDP with two different suppliers and generally they have been fine, remember that if your supplier includes shipping as part of your unit cost then your shipping falls under Trade Assurance protection as well so they will want to get it right. The vast majority of these suppliers will be familiar with shipping to Amazon, you can always ask them if they know the process for piece of mind.
Great info again Darren - very tricky to start with limited capital... but not impossible! I have 2k set aside with the possibility of borrowing a small amount more (from family). I'd rather not but it's a safety net. I'm fully expecting to take a little longer than many to grow the business. I feel the pressure of getting the first product right though. Iiterally cannot afford to lose that money.
2k should work well for the right product - the first product is always scary! I tried to focus that worse case I should still be able to sell the stock at break even or a small loss, it would be very unlikely that you would lose all of your investment.
That's good to hear Darren.
Hi Darren, love all your content and would love if u could help out with is question, i have my brand name but i am concerned its guilty of brand infringement, what would you do to make sure your brand name was all above board? for example, if there was a company called "flash cleaner" and your product dispensed flash (as well as other products) but flash was the market leader and your product was called flash dispenser. any help or information would be fantastic.
Hi Darren i'm new to Amazon FBA, love your Channel it's of great value to me. I have a question. There is a lot of content about PPC for US sellers, but I have no idea how it would compare to the UK market. It seems that a $100 a day budget is normal for an aggressive launch over there. How much money would you say you would need for an aggressive launch in the UK. a launch on just PPC alone? I was thinking of looking for a product which would bring me in about £1650 revenue or £500 profit per month (selling two items per day at £9 profit after all expenses each). Am i short selling myself here? or is it quite possible to shoot for a niche with more profit than this without having to spend multiple thousands on PPC?
What about register a Brand costs?
Hi Darren. Thank you for the video. When you order your 500 units, your cost per unit is cheaper than the sample units. Is that right? I was just checking how two units cost 100 pd (no sign of British currency on my laptop) when 500 cost 900 pd.
Also, is it true Amazon does not let new sign up on Amazon FBA in the fall before the holidays?
For DDP orders, are you able to claim back the import VAT which your supplier sorts out with which I assume to be their own or freight forwarders EORI number?
I'm trying to find this out myself as I'm just about to become VAT registered. I think the accountant can make a manual adjustment, I'll cover it in a future video once i know for certain.
Great information
So does normally supplier offers shipping options and pricing or is it our responsibility to organise that? What about EU manufacturer? I have contacted supplier and they gave me unit price, so how do I go about shipping should I ask how much would it be x amount units to be shipped to this address or should I organise it all my self?
Thanks for the great video Darren. What about the fee for Amazon to store your products and take care of shipping and customer service? (Amazon Fulfillment?)
Thanks Celine - good point! I didn't include them in the startup costs as I see them as ongoing costs that are deducted from your sales so you don't pay for them up front.
@@FBA-Elite Thanks Darren, I didn't know that. So when you send your products to Amazon, you don't pay the storage straight away?
@@celined4943 The first storage fee will appear on your account around 1 month after your stock arrives - if you have already generated some sales during that time then it will be deducted from the sales. In just under a year I have never paid storage fees directly, they have always been deducted.
@@FBA-Elite Thank you Darren. Do you offer mentorship?
@@celined4943 I do offer mentorship calls, if you would like to know more please email me darrenlynchfba@gmail.com
What do you do in a situation where the supplier is only willing to put on your logo onto the main batch and not the sample?
Usually they'll put it on the sample for an extra cost. If they refuse I'd probably look for another supplier, however, if you want to go with them get them to send you the first final product they make by air so you get it a week or two before the main order for the photoshoot
Hi darren. My american mentor sent me some GS1 barcodes. Is it okay to use them on the UK amazon? Secondly. When I add a product. Do I just take off the zero at the start of the upc code?
HI Darren, may I please ask do you have to vat register for ordering goods to get them shipped from china?
I don't want to sound funny but I think you need to have at least £150,000 to start up a business, if not we are talking about hobbies and pocket money, that's why so many fail and give up because they just don't have the capital or know the real costs.
It depends on what you class as pocket money - to some people £2,000 profit per month could replace their income and change their life, for others it would barely scratch the surface.
Thank you Darren great video, I am new in this FBA business I wanted to start long ago but no knowledge about how o do this.
Can I ask you what guaranties you have from suppliers they ship the right product as described in their sites (especially from China)? What is the safer way to pay for the product from Alibaba web site? Thank you
I planning on selling on Amazon and I brought some sample of products I’m interested in on Alibaba. I would say you should buy from suppliers that have a Alibaba ‘Gold Supplier’ and ‘Trade Assurance’ certification.
You’ll find these suppliers very responsive to your question. Also for extra protection pay using a Credit Card. Good luck!
Love how some of the "gurus" say grab a bar code for £5 blah blah blah, lol!
Agreed mate, it's a lot harder for them to sell courses if they say barcodes are expensive :-)
@@FBA-Elite I'm guessing it's not advisable to share an account for the GS1 barcodes site is it?
I pay 30 pounds. But I don't know where I have to started?? Do I need pay Fba Amazon??
If you go out of stock, do you lose your listing? Do you have to make a new listing from scratch for that product again?
You don't lose your listing but you will probably lose some organic rankings so when new stock arrives you may need to relaunch the product with PPC etc.
Hi Darren, my question is unrelated with the topic hopefully you will answer i've been selling as a professional for 3 month now and really cannot sell more that 20 item in a month combined all 5 european countries and switched on as individual seller this will go live in 15 days so my question is that do you think my organic sales will stay in place which i have gained as professional seller after i have switched on to individual i'm asking this question cos i won't be able to create PPC in individual plan so i need those organic sales thanks in advance...
I haven't been through this process, however, if Amazon are just downgrading the account and you don't need to recreate the listings hopefully your organic ranks will remain. Please let me know how it goes so I can help others in future.
@@FBA-Elite sure my friend i will let u know
Hi darren. I wanted to ask how do you actually create a brand for your product. What are the actual steps?
There aren't exact steps, you could come up with a brand in 10 seconds! Try to come up with a name that isn't already being used by another company and if possible with an available matching domain name. You then register the name as a Ltd company and for additional protection you can apply for your own Trademark - I didn't apply for a Trademark until I had been selling for a few months.
@@FBA-Elite Thanks for your help Darren Much appreciated. 🖒🖒🖒🖒
Hi mate, how are the jungle scout sales monthly numbers on the chrome extension are they the most accurate compared to viral launch and helium10?
I haven't tried VL but for me JS and Xray are usually very similar - certainly close enough that either would be fine.
Darren Lynch thanks buddy
Hello Darren, could you please share fiverr 3d renderer contacts and recommend a company for a business insurance? By the way thank you for an awesome content and well strucured videos!
Thank you for the support, i'll be sharing all of that information as part of a package i'll be announcing in the next few weeks.
@@FBA-Elite That is awesome!
Do you use a business bank account? Who have you used and what are their charges?
Yes I am wth HSBC, the monthly fee is waived for the first 18 months and international bank transfers (CHAPS payments) cost £17.00 each.
@@FBA-Elite Thanks, Darren. Keep up the great work and congratulations on your 1 year youtube anniversary 😆
How are you using manychat?
I might do a video on this in the future as it is too detailed for a comment :-)
Darren Lynch please do. I know manychat quite well, are you taking people from ad to manychat then to amazon?
@@tomrozee4523 Yes, straight to Amazon without a landing page.