How Much Capital Do You Need to Succeed on Amazon FAB?
The Full Truth – Far from Misleading Ads
If you're thinking of entering the Amazon marketplace, you've probably come across claims like, "I started with less than $100 and made hundreds of thousands!"
But is that really realistic? Does success on Amazon require a large investment?
The truth you need to know:
Amazon is now more competitive than ever. Survival isn’t for those starting with pocket change — it’s for those who can sustain and invest smartly.
In this article, I’ll break down exactly how much capital you truly need to start on Amazon, and why trying to start with too little can lead to early failure before you even see profits.
How Much Do You Really Need to Start? Can You Succeed with a Small Budget?
A study by Jungle Scout surveyed thousands of sellers and found that startup costs vary widely:
17% started with $500 or less
12% started with $501–$1,000
13% invested $1,001–$2,500
18% spent $2,501–$5,000
16% started with $5,001–$10,000
21% invested over $10,000
Result:
More than 60% started with less than $5,000 — but here’s the catch:
3 Major Issues with These Statistics:
No Selling Model Was Specified
(Jungle Scout didn’t clarify whether results were for Private Label, Wholesale, or Retail Arbitrage — and the capital needed varies drastically.)They Only Mentioned Initial Investment
Many sellers invest more later.I once saw a video titled “How I made $50K in 6 months with just $2K!” — but halfway through, the creator admitted he borrowed $25K from his father after his first shipment. So... did he really start with just $2K? Absolutely not.
The Source
Let’s just say... the source of these stats is a company that sells tools to Amazon sellers. What is Jungle Scout? Exactly. Do I need to say more?
So, How Much Do You REALLY Need to Succeed on Amazon?
Let me be clear:
Success on Amazon requires significant capital.
It was competitive when I started — now it’s 10x more crowded.
The exact amount depends on the product, but from my experience, launching a product properly costs around $5,000 for your first shipment, including:
Product manufacturing
Ads
Professional product photography
High-converting product listing
Will You Make a Profit from the First Shipment?
No. Don't expect quick profits.
You should already have another $5,000 ready for a second shipment. Even if you recover your costs from the first batch, you need momentum to stay competitive.
Without enough cash flow, you’ll likely quit early, while others pass you in reviews and rankings.
"Dr. Huria, Are You Making It Sound Harder Than It Is?"
I'm not trying to scare you —
I'm trying to protect you from falling for the “get-rich-quick” fantasy.
Yesterday, I saw an ad for an Amazon course claiming:
"People think you need a big budget, but I started with $100! And now I make $800K a year!"
That sounds amazing, but the course being sold was $1,500…
So, how can you teach me to start with $100 while asking me to pay $1,500 to learn?
Contradiction alert!
Amazon Now vs. Before 2015: What’s Changed?
Product Reviews:
Before, you could give away products for free and collect 100+ reviews in a week. Now, that’s no longer allowed — and low review count is a major hurdle.Competition:
There used to be just a few sellers per product. Now?
A product once sold by 3 sellers may have 10+ full pages of competitors within 3 weeks of launching.
Still, not all competitors are equal — the strongest survive.
Success now depends on:
Smart ad strategy
Smart pricing strategy
Building a brand (to eventually sell your business)
The question is: Can you keep going when others drop out?
New Seller Mistakes:
New sellers often panic when they see prices drop and everyone undercutting each other. They lower prices, make losses, and try to sell fast — then give up. This destroys the market.
But every failed seller leaves behind reviews — which helps YOU stand out later.
You may not profit from your first or second shipment,
but you’re building a long-term business.
Is Amazon Different from Other Businesses?
Not really.
Whether you're opening a restaurant or selling on Amazon — you’ll need capital and expertise.
I once said in a video: “You need at least $10,000 to start right.”
Someone replied: "Should I sell my kidney to start on Amazon?"
It was a joke — but would he say the same if I told him it costs $10,000 to open a restaurant? Probably not.
Why Do People Think Online Businesses Don’t Need Capital?
Because the internet feels free. But any real business needs investment — Amazon included.
People love shortcuts and dream of passive income, so they fall for promises like: "Start with $100 and make $10K/month! Buy my course!"
But here's the truth:
Success on Amazon requires more than a cheap course and a small investment.
It takes strategic learning and smart implementation.
Actual Costs to Start an Amazon Business:
Estimated Total Startup Cost:
Minimum: $7,333.99
Maximum: $8,818.99
These are approximate and vary depending on branding, inspections, barcodes, and other variables.
Final Thoughts – Is Amazon Right for You?
Amazon is not a short-term hustle — it’s a long-term investment.
If you’re willing to:
Invest in your product, ads, and marketing
Be patient and strategic
Avoid “easy money” scams
…Then yes, Amazon could be your lifetime opportunity.
