Amazon FBA (Fulfilled by Amazon) means you send products to Amazon’s warehouses, and they handle storage, shipping, customer service, and returns. You focus on finding and marketing products. The platform processes $700 billion in annual transactions โ€” the opportunity is massive.

The Real Startup Cost (Honest Numbers)

  • Initial inventory order: $1,500โ€“$5,000 (minimum viable order from manufacturer)
  • Product photography: $200โ€“$500
  • Brand registry: $285 (trademark)
  • Initial advertising budget: $500โ€“$1,500
  • FBA storage + fulfillment fees: 15โ€“30% of sale price
  • Total realistic startup: $3,000โ€“$8,000

Product Selection Is Everything

The golden criteria: monthly search volume 1,000โ€“10,000 (large enough market), top seller under $100,000/month revenue (not dominated), average review count under 200 (achievable to compete), profit margin above 30%.

Is It Still Worth It in 2025?

Yes, if: You have $5,000+ startup capital, patience for a 6โ€“12 month payback period, and tolerance for inventory risk.

No, if: You have limited capital, need income quickly, or can’t handle the possibility of a failed first product.

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Alternative: Amazon Merch
Earn: $500โ€“$5K/mo passive
Amazon Merch on Demand is free to join, requires zero inventory investment, and earns $3โ€“$7 royalty per shirt. Much lower risk than FBA. Start there before committing to FBA.