what is going on Amazon sellers or
hopefully soon-to-be Amazon sellers my
name is beau Crabill and in this video
we will be covering the very important
question that is brought up all the time
and that is how much money do you need
to sell on Amazon now there's be
multiple parts of this video come and I
cover that question but I'm also going
to be covering the fact on what I
believe is a suggested amount I'm not
just gonna tell you all the bare minimum
what you need just to hype it up so you
can feel like oh I can start with a very
low amount of money to make a bunch of
money I'm very realistic and blunt with
you all right and how I'm getting these
numbers on one of you telling you that
this video is from my personal
experience of being an Amazon seller and
selling online for over a decade and
then also being lucky enough to coach
hundreds even thousands of students who
sell on Amazon now in this video how I'm
also giving these numbers is going to be
based off the business model of selling
name-brand products on Amazon so if
you're doing arbitrage or your drop
shipping or private labeling models that
I don't think you should even do those
numbers are gonna be different
especially private labels gonna be much
much higher and how I'm gonna break this
video down is into three categories of
funds one is going to be off legal so
what do you need for it in parts of
legal services like getting your
business set up to is gonna be off of
working capital and then three is going
to be off services so right now let's
get into legal and what you need before
though that okay so first off to sell on
Amazon through FBA right if you want to
learn about my business model exact what
I do I have other videos for that
dissident means like what how much money
actually for for some on Amazon with a
professional business account
you're gonna need 40 dollars a month to
sell that now I will say that most cases
usually if you don't sell anything
during that month Amazon will actually
refund the $40 so $40 for to sell on
Amazon fee now Amazon takes other fees
but that's just if you get sales right
then the other thing is you're going to
need to set up is your resellers permit
and your business license for selling
name-brand products business or
resellers permit so that
you're not paying sales tax on the goods
you're buying and that you can also
collect sales tax from your consumers
and to be really honest with you that
shouldn't be more than twenty dollars
it's usually about fifteen or so
depending on the States I'm not a legal
adviser but I'm put twenty dollars for
that
Washington State cost me eighteen I know
Nevada is like $15 then the only other
thing for legality wise to get your
business set up so you can actually sell
on Amazon will be getting a business
license now I have LOC written here
because LLC is gonna be the most
expensive but you do not need an LLC
okay a lot people think you need one but
you can be a sole proprietor you can be
a partnership you can't be analysis if
you want to but you don't have to and
I'm putting for our dollars there
because if you are spending more than
four hundred dollars getting your
business set up my personal opinions are
doing the wrong again I'm not a legal
adviser I actually had a student of mine
who was able to get his LLC up for like
eighty five dollars but he's also like a
minimalist and everything like that but
if you're doing it for more than four
hundred hours you're doing it like
either wrong or you're just letting
someone do for you and do the fastest
way possible
that's numbers there so recap that
Amazon fee forty dollars research front
of twenty business license
four hundred that comes out to be a
total of four hundred sixty dollars for
the legal category so now we're gonna
move on to the next category of working
capital
so with working capital
that's where pretty much you're buying
inventory so you could change this to
inventory however you like it it's the
process and the money you're gonna need
to buy products because in this business
model you're buying low and selling
higher and you can't make money in this
business if you don't have profitable
inventory your store and you can't have
profitable inventory in your store if
you don't have money to go buy the
inventory so sorry
yes you're gonna need money to make
money in this business and I would say a
bare minimum for inventory for working
capital isn't be $500 now where am i
basing is 500 off of many suppliers that
I work with have moqs where if I
spend 500 dollars with them 200
then I can make an order with them and
me personally I make purchase orders all
the time of a few hundred dollars here's
a bunch of screenshots right here of
being a couple of bucks five hundred
seven or dollars you can see right here
so it's proof that you can literally
start this business and have working
capital of a few hundred dollars however
I let you know that I believe that
thousand to fifteen hundred dollars
based off my experience working with
other people is going to be a realistic
amount why because many suppliers have
moqs of a thousand fifteen hundred
dollars yes some will have mo queues of
two and fifty dollars but not all now if
you have less than a thousand fifteen
are dollars I mean you can't start no
you just have to work with the suppliers
who have that moq right so right here I
would say suggested a mouth for working
capital in my opinion is $1,500 now can
you have more yeah is this regarding
mistakes you're gonna make no that's
suggesting about so now let's get into
the next category and that's services so
this is where people waste the most
amount of money once you write that down
right now
do not waste money on services what I
mean by that is tools and software's so
tools and software's do not waste money
on it the only actual tool I've use in
my business is an analyzing tool I used
to use other third parties out there
actually use my own now so I may have a
bias on that because I sell an analyzing
software but with that you don't
actually even need it it's optional and
just for a certain part of the business
but paying for general Scout know just
use jungle Scout sales estimator right
paying for an updated version if I keep
a right Rev so or stuff like that or
having someone be able to automate to
show you the fees on it or any fee
calculator don't use Amazon as a free
fee calculator because I think the day
you're buying a little selling card you
need to know the demand so using a sales
estimator and the profit using Amazon's
free fee calculator and the history of
the products keep up those are all for
free now what I'm getting the seventy
dollars from is where
surely you may want to use an analyzing
software which analyzing software you
import a spreadsheet of thousands
hundreds how many what products you want
that you get from your supplier and the
software will tell you what's profitable
what sells within minutes right
so my analyzing software is $40 a month
$39.99 a month
it's BOSS analyzing software and
truly my opinion it's the best out there
because it's web-based and so many other
features have a full video on that as
well but there's I'd say the most
expensive analyzing software out there
is $70 and that's where the seminars
come from
so services a total of $70 and you
shouldn't be spending more on that with
tools and software's because you don't
need them
alright re[ric Amazon has a free
repricing software so someone who
leaves a comment down below saying oh
but this repricer software is great
amazon has their own free repricing
software right got it
so now let's recap this now before i
recap this there's actually one thing i
want to talk about and that's going to
be an optional section called education
so what i exploit to especially this is
gonna be important in regards to working
capital is this is going to be if you're
educated and not going to make mistakes
so for me as an Amazon seller I've been
doing this for a while
I've learned from mistakes I've wasted a
ton of money of working capital because
I didn't know what I was doing in
regards to working with suppliers
knowing what's a good product to sell
knowing how the buy box works knowing
product research knowing history of
inventory and I've wasted an insane
amount of this and that's why some
people say oh you need ten thousand
dollars because they because they wasted
that much money because they weren't
educated so with me I'm a firm believer
on investing in education and I do have
an Amazon course and I'm not
guaranteeing that oh you get into my
Amazon course you're not gonna make any
mistakes but I will say that I've seen a
very very strong correlation because not
only do I have Amazon students I have
people who watch my youtube videos
they're on my Instagram that forming I
have a community of tens of thousands
people who are not in my course and I'd
see a strong correlation of people
we were just in my community who
messaged me I get these messages all the
time of wasting thousands even tens of
thousands of dollars on inventory
because they didn't know some very small
steps I've seen people who waste money
by traveling to so many trade shows
because they don't know how suppliers
work and then they get a huge relief
once they get inside my course and Roy's
oh if I were just known that mistake I
would have saved so much money oh I
didn't have to go travel there there
there so I do see a very strong
correlation of people my students who
invest into my education to my Amazon
course who limit their mistake quite a
bit because that's what kind of whole
goal of my course is to limit your
mistakes and then to make money on
Amazon right but again that's optional
I'm not gonna put that in there because
you don't have to go take that but
that's also where I'm getting the
numbers from so do keep that in mind
that in my personal opinion that if you
are not investing into education this
number is gonna be a lot higher because
you're gonna have room for mistakes I
made a bunch of mistakes and I see
people that are part of my community not
my students all the time wasting so much
money right so now let's get into the
total of this to recap this video but
this video is not getting recaps yet
because I'm talking about another
portion after this on saying what if you
have way more than this money what
should you actually start with but now
let's just recap the amount of money to
get the business started legal for and
$60.00 piece hours permit amz fee and
research permit business license working
capital 1500 ollars right 500 minimum
because if some Samar's have those
minimums but a realistic point is $1,500
services analyzing tool seventy bucks
that comes out to be a total of two
thousand thirty dollars right and then
my course sells from nineteen ninety
seven dollars so if you want put that
into option two looking at a little over
three thousand dollars on that so now I
wanna get to the end of the video where
I want to talk about on what if you have
way more than this you have way more
than this for working capital should you
just put as much as possible answers no
in my personal opinion I do not think
anyone should start care if you're worth
a billion dollars or if you're worth
$10,000 I don't think any
one should start with their working
capital of more than $10,000 on their
first order the reason I say this is for
a few reasons not because what one is
because I want you to build confidence
because the biggest part about this
business is your turning X amount of
dollars into more and all you got to do
for that is buy low sell high and once
you figure out and you have confidence
confidence is key then you can turn a
five dollar bill into seven dollars then
you're gonna figure out how to find the
most amount of money so you can get
those five dollar bills and turn into
seven so you just in confidence for that
and if you put in twenty thousand
dollars and you're not educated you
didn't start small and test it and you
waste money you're gonna lose confidence
you know I'm gonna want to go to this
business so I definitely suggest that
10,000 below thousands of 10,000
starting small testing and building
confidence is one of the most important
things because this business is not
going anywhere
build the confidence buy low and sell
higher right and then also because when
you're building emotions with suppliers
let's say you put in an order of $30,000
they're gonna like that and they're
gonna try to sell you on so much more
inventory and what I've seen from people
is that they will put a big order it
with the supplier and the supplier tries
to sell them so fast before they
actually start selling the inventory and
then they realize they put in another
$30,000 and another 20,000 dollars and
before you know it there are a hundred
thousand dollars in inventory they
haven't sold a product yet I've seen
that happen so that's why starting small
with a thousand of ten thousand dollars
or no more than ten thousand dollars
building the cost is great oh yeah one
thing I want to mention too is that okay
yes I'm saying don't start with more
than 10,000 but once you go to the
confidence then yeah you can for sure
invest more inventory once you go down
the road for example like myself you can
see the screenshot here of doing
purchase order of over $30,000 and the
reason why I make purchase orders like
that also not because like just because
I do it to be risky is because I'm
making a very calculated and very
confident my buying decision so that is
it for this video thank you so much for
watching this if you have any questions
at all where you want argue with me
about these numbers at all I can
definitely feel free to respond to your
comments if you like this video feel
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sellers