How much start-up capital is needed to start an Amazon business? This question has been raised repeatedly. How much capital is needed to start an Amazon store? From registering your company to registering an Amazon store, and then shipping some goods in small batches, try to go through this process. In total, you will probably need about 2,000 RMB. This is no exaggeration. This is called start-up capital. This is just for you to go through the process and then decide whether to give up or continue. So from this point of view, starting an Amazon business is still a light-asset startup. Because you need...

The cost of starting it is really too low. But you have to pay attention, if you really want to continue to do it, it will definitely become a heavy asset. OK, after experiencing the small batch of start-up capital mentioned earlier, you decided not to give up. If you want to continue to do well, you may encounter two situations. The first is. You are shipping every batch, and every time you send it for testing. But it is possible that you have never succeeded in testing the model, and every time a product has been tested, it has been buried in the sea and has not been made. So in this case, your investment may be a bottomless pit, which is difficult to estimate. The second situation is that if one of your products is done, then we will use this product to calculate how much your investment will be.

In this case, we also need to talk about two types of products, one is sea freight products, and the other is air freight products. The sea freight products have a long cycle, and it takes a month to ship from China to abroad. So generally speaking, for this kind of product, we usually have to prepare at least 1,000 units, otherwise it is easy to run out of stock, right? Let me give you an example. If you make this product, the purchase price is about 30 yuan. Then each product is about one kilogram. Let's say one kilogram costs ten yuan, 30 plus 10 is 40 yuan, and if you ship 1,000 units, it will cost 40,000 yuan. Then you put it on the shelf one month after shipping it and start selling.

But you have to note that Amazon has a settlement cycle, once every 14 days, right? So this account is not received in real time. If your goods are always being sold, what should you do if your account does not come back in time to replenish the stock? Do you have to prepare the goods in advance, because you have to count the time from domestic to foreign. You also have to consider the production time of the factory, right? So we may have to prepare the goods one month to one and a half months, or two months in advance. At this time, there is no money on hand, so we can only have a reserve fund. At this time, at least 1,000 units must be sent out, and 40,000 units must be sent out. So you can't be without money, right?

We also need some temporary working capital, right? So generally speaking, we have a rough formula. If you are engaged in sea transportation products, you normally send a batch of goods. You should have at least three times the funds of your batch of goods. For example, the batch of products just sent is 40,000 yuan, so you need at least three times, 120,000 yuan, as a continuous investment.

It is relatively better to ship products by air, because the time efficiency of air transportation is relatively fast, and you don’t need to prepare so much each time. You can send two or three hundred, or three or five hundred at a time. In this way, the financial pressure on yourself will not be so great. But no matter what, you must have shipped the goods, and you still need some working capital, right? So my general suggestion is to have twice the funds. That’s it. Therefore, it is generally recommended that novice sellers try to do some air transportation products as much as possible, and don’t touch the sea transportation products rashly. Unless you can consider the problems I just mentioned, and have a certain amount of financial strength. Just be prepared. In addition, I would like to remind you that the funds I just mentioned are the minimum financial preparations. In fact, when you are doing it, you may encounter many unexpected situations.

There may be other reasons for temporarily increasing the inventory, which may cause you to need additional funds. It is hard to say. Therefore, old Amazon sellers often joke about themselves that they have been doing Amazon for several years, but they have not made any money. Instead, they have made a lot of money and put it there. This shows the problem. Doing Amazon will definitely become a heavy asset in the end. But this is not necessarily a bad thing. After all, the goods are still yours. After you sell them, you don’t want to do it anymore, but the money will sooner or later fall into your pocket, and you will still make money in the end. It depends on how you look at this issue.

Today I will give you a simple answer to give you a general idea. On the other hand, I want to remind those who want to get rich overnight through Amazon that Amazon is no longer a place to make quick money. It will definitely be a capital-intensive business in the future. You must think clearly about this before you start.

What I want to share with you today is --

The most detailed guide to Amazon listing operations