A useful startup budget is built from the product upward. It should not begin with a claim such as “anyone can start with $500” or “you must have $20,000.”
The six budget groups
- Inventory: supplier cost multiplied by the first order quantity.
- Logistics: packaging, prep, inbound shipping, and duties.
- Launch setup: samples, inspection, branding, photography, and legal work.
- Selling account and software: the tools used before revenue begins.
- Advertising: enough budget to test traffic and conversion assumptions.
- Contingency: a reserve for cost changes, delays, and missing assumptions.
Minimum budget versus recommended budget
The minimum budget is the cost of the plan as entered. The recommended budget adds a safety buffer.
A product may fit the minimum budget and still be too risky when it leaves no room for unexpected freight, weak conversion, returns, or the next order.
Use the calculator
The Amazon Startup Cost Calculator turns these groups into one budget and shows whether the recommended amount exceeds the capital available.
The result is a planning estimate—not a promise that the product will succeed.
Frequently Asked Questions
Is inventory the only major startup cost?
No. Samples, inspection, packaging, inbound shipping, duties, photography, advertising, software, and a safety reserve can materially change the required capital.
Should I use all available capital for the first order?
Usually no. A plan should keep room for unexpected costs and the next inventory decision.