Every "how to start Amazon FBA" guide says you can start with very little money. That is technically true, but an honest assessment of startup costs helps you budget properly and avoid running out of capital before your business gains traction.
The Absolute Minimum
You can technically start selling on Amazon with under £100. An Individual seller plan costs nothing per month (just £0.75 per sale), and you could source a few products from charity shops for £10–£20. If you prep at home and ship via Royal Mail, your out-of-pocket cost is minimal.
But "minimal" is not the same as "optimal." Starting this lean limits your product selection, slows your learning, and produces very small returns. It works for absolute beginners who want to understand the mechanics before investing more.
A Realistic Starting Budget
For a genuine start that gives you enough runway to learn and grow, budget £500–£1,500. Here is where it goes.
Amazon Professional plan: £25/month. First stock purchases: £300–£800. Prep supplies (labels, poly bags, bubble wrap): £30–£50. Shipping to Amazon: £30–£100. Software tools (Keepa subscription, scanning app): £15–£30/month. Contingency buffer: £100–£200.
This budget lets you source 20–50 products across different categories, learn what sells, and start building revenue. It is enough to make meaningful progress without being a devastating loss if things do not go as planned.
The First Year Total
Over your first year, total investment typically ranges from £2,000 to £5,000 for a part-time operation. This includes rolling stock purchases (funded increasingly by profits), subscription tools, prep costs, and shipping. Sellers who reinvest aggressively may invest more; those who are cautious may invest less.
Hidden Costs People Forget
Returns eat into your profit — budget for a 2–5% return rate depending on category. Unsold stock is a cost — not every product will sell as expected. Storage fees accumulate on slow-moving inventory. Your time has value — even if you do not pay yourself initially, the hours you invest are a real cost.
Comparing to Other Business Models
Relative to most business startups, Amazon FBA is remarkably affordable. Opening a physical shop costs tens of thousands. Even most online businesses require website development, marketing budgets, and customer acquisition costs. Amazon provides the customers, the technology, and the fulfilment infrastructure — you just need products and the knowledge to sell them.
Start with what you can afford to lose without financial hardship. Learn from those first purchases. Reinvest and grow. The sellers who succeed are rarely the ones who started with the most money — they are the ones who learned the fastest and stayed consistent.