Costs
What it actually costs to start
Published figures for each model, side by side, with the disagreements left visible rather than averaged away.
The published ranges
These are figures cited by sellers, tool vendors and coaches — not audited data. They are useful for orientation and useless for planning. Read the spread, not the midpoint.
| Model | Cited range | Time to first sale |
|---|---|---|
| Retail arbitrage | $100 – $2,000 | Days |
| Online arbitrage | $500 – $2,000 | Days to weeks |
| Dropshipping | Under $500 – $2,000 | Days |
| Wholesale | $1,000 – $10,000 | Weeks to months |
| Private label | $2,500 – $25,000 | Months |
Why private label has a ten-fold spread
This is the most useful thing on the page. Sources do not disagree slightly about private label startup cost — they disagree by an order of magnitude, and the reason is that they are counting different things.
- One 2026 guide puts a realistic private label start at $2,500–$5,000, and cites Jungle Scout seller research indicating new sellers spend around $3,800 on average to get a first product live.
- Another puts a beginner budget at $5,000–$15,000 depending on product complexity.
- A third puts it at $5,000–$20,000 or more once inventory, freight, photography and listing setup are included.
- A fourth describes $15,000–$25,000 per product as realistic for a proper launch including PPC.
The low figures are counting the first inventory order. The high figures are counting the first inventory order plus the reorder, the advertising budget to get the listing moving, and a reserve for the mistakes. Both are honest. Only one of them describes what actually happens.
The line almost everyone leaves out
Working capital for the second order. Your first order sells, but the money is locked in the payout cycle. If your winner needs restocking and you have nothing left, you go out of stock, lose rank, and pay to rebuild it. Budget the reorder as a separate line from day one, not as something the first order will fund.
What the fixed costs actually are
- Professional selling plan — a monthly subscription; the individual plan charges per item instead, which is cheaper only at very low volume.
- Business entity and resale certificate — usually required before a distributor will open a wholesale account.
- Software — treat as optional in month one. Most tools solve a problem you do not have yet.
- Customs and freight — no longer avoidable for imports since the de minimis suspension. Budget a broker.
- Reserve — the line that separates a business from a gamble.
How to use these numbers
Take the highest cited figure for your model, not the average, and ask whether you could lose it without it changing your life. If the answer is no, either pick a cheaper model or wait. Every figure on this page came from someone with an interest in you starting.
Frequently asked
What is the cheapest way to start?
Retail arbitrage and dropshipping have the lowest cited entry costs, in the low hundreds. Both also carry the thinnest margins, which since the 2026 fee changes leaves almost no buffer for cost increases.
Why do private label cost estimates vary so much?
Because low estimates count only the first inventory order, while high estimates include the reorder, the launch advertising budget and a reserve. The high figures describe what usually happens.
Do I need software to start?
Not in the first month. Most seller software solves a problem that appears at volume. Buying it early is a common way to spend inventory money on a dashboard.
Should I borrow money to start?
Nothing on this page supports doing that. None of these models has a success rate that would justify borrowing against, and the models with the lowest entry cost also have the thinnest margins.
Sources
- How much budget to start Amazon (2026 guide), ScaleA2Z accessed 2026-08-07
- How to start an Amazon business in 2026, Seller Sprite accessed 2026-08-07
- 5 types of Amazon sellers: which model makes money?, SellerView accessed 2026-08-07
- How much money do you really need to start selling on Amazon FBA, Nformed accessed 2026-08-07
- How to build a private label brand on Amazon in 2026, Seller Sprite accessed 2026-08-07