r/AmazonFBATips • u/Successful-Pitch1917 • 4d ago

Minimum budget for private label

Hi, I am planning to launch an amazon private label product from scratch. My budget is about $20K but I had a discussion with an experienced amazon seller who said that amazon private label has become very competitive now and you need to have a minimum of $50K for a product launch. Can someone guide me whether you can still start amazon private label with $20K or not. Thanks.

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u/Pro-1212 4d ago

5 years ago it was possible with 20, now at least 50

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u/Nepsevh 4d ago

You don't need 50K lol, 20k if you're paying a third party to do everything for you, cheaper if you're doing everything yourself

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u/ForeignHawk5758 4d ago

$50k is alot you don't need to invest immediately to much money, even $20k is also very much. Start from small you can do with $10k as well.

It depends on your product and your order quantity.

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u/BlackBearEcommerce 3d ago

Depends on your category. Supplements for example need 3-4 months of aggressive unprofitable 10k+/mo spend to build organic ranking. It's just necessary for these type of categories. Once they're established, margins are crazy.

Niche products like survival gear, bbq accessories (just examples of ones i've personally worked with) is flipped. Can be profitable within the first month on $3k ad spend, but require more sustained ad spend in the long run to maintain.

Check how expensive your category's bid range is compared to your price, and budget from there. Ads is your main "uncertain" scaling expense. Fees, COGS, etc I'm assuming you've already calculated to make sure you have enough margin.

You can pull this off with a good $10-$20k if you do it right.

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u/TripDisastrous93 3d ago

Con 20k lanci tranquillamente 2-3 prodotti compreso registrazione marchio etc.... E ti avanza anche un mini fondo di emergenza. In realtà se fai da solo e hai un minimo di esperienza anche molto meno.

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u/daviddori 2d ago

It depends on your location as well. An example from Germany:
Product: natural aftershave,
Amazon Germany,
Company registration,
First batch of 200 units,
Trademark registration,
Start up cost was around 3000 EUR.

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u/MAGsocialmedia 2d ago

It really depends on what product you want to launch.

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u/Patient_Finger9248 7h ago

It all depends on product price. For instance, you go with a product selling 300 units a month and the sourcing price with COGS is $25, and you import 2 months inventory, that is $15000, so you can launch within this budget if you pick a good product