Platform Operations · 2026-04-13
How Much Does It Cost to Start Selling on Amazon from Outside the US?
The real cost to launch an Amazon business as an international seller is not $0. Here is a complete breakdown of every expense from LLC formation to first inventory shipment, with realistic first-year estimates.
The "$0 to Start" Myth
Every third blog post about selling on Amazon claims you can start for free or nearly free. This is technically true in the same way that starting a restaurant is free if you ignore the kitchen, the lease, the food, and the health permit.
The reality: launching a legitimate Amazon business from outside the US requires real infrastructure investment. The good news is that the total cost is far lower than starting most traditional businesses. The bad news is that sellers who underbudget end up stuck in verification limbo, unable to receive payouts, or running out of cash before their first product gains traction.
Here is every cost, broken down honestly.
The Complete Cost Breakdown
1. US Business Entity (LLC Formation)
| Item | Cost |
|------|------|
| Wyoming LLC filing fee | $100 (state fee) |
| Registered agent (first year) | $100-150/year |
| Subtotal | $200-250 |
Wyoming is the standard choice for international founders due to zero state income tax, strong privacy protections, and low fees. Delaware is an alternative but has higher annual franchise tax ($300/year minimum). Nevada has higher fees and more complex reporting.
Do not skip the LLC. Selling on Amazon as an individual non-US person is possible in some cases, but it creates tax complications, limits your ability to open a US bank account, and makes your business less credible during verification.
For a complete guide on LLC formation, see What Is an LLC? A Guide for Non-US Founders.
2. US Business Address
| Item | Cost |
|------|------|
| Commercial sublease (monthly) | $350/month |
| Annual cost | $4,000-4,200/year |
This is the expense that most guides either understate or get wrong entirely. They will tell you to use your registered agent address (which fails bank verification and Amazon verification) or a virtual mailbox/CMRA (which gets flagged by Amazon, Stripe, and most banks).
A commercial sublease at a non-CMRA address is the only reliable option for international sellers who need to pass verification across all platforms. It provides:
A real commercial address for your LLC registration
An address that passes Amazon postcard and video verification
An address that banks accept for business account opening
A sublease agreement that serves as proof of physical presence
On-site mail handling (verification postcards opened same-day)
Yes, $350/month is real money. But consider what happens without it: failed Amazon verification (weeks of delay), rejected bank applications (more weeks), address changes across all registrations ($100-300 in amendment fees), and potential account suspension. The cost of the wrong address is always higher than the cost of the right one.
3. US Bank Account
| Item | Cost |
|------|------|
| Account opening | $0 (most business checking accounts) |
| Monthly maintenance | $0-15/month (varies by bank) |
| Annual cost | $0-180/year |
Most US banks offer free business checking accounts or waive monthly fees if you maintain a minimum balance. Mercury, Relay, Bluevine, and Novo all offer $0 monthly fee accounts for LLCs.
The challenge is not the cost. It is getting approved. Banks verify your business address, your LLC documents, and your identity. If your address is a known CMRA or registered agent address, many banks will reject your application automatically.
With a commercial sublease and properly filed LLC documents, bank account opening typically takes 1-3 business days online. See our US bank account guide for Wyoming LLC owners for specific bank recommendations.
4. Amazon Professional Seller Account
| Item | Cost |
|------|------|
| Monthly subscription | $39.99/month |
| Annual cost | $479.88/year |
This is non-negotiable if you want to sell seriously. The Individual plan ($0/month but $0.99 per sale) does not give you access to advertising, bulk listing tools, or the Buy Box. Every serious seller uses the Professional plan.
5. Product Sourcing and Initial Inventory
| Item | Cost Range |
|------|-----------|
| Product samples | $100-500 |
| First inventory order | $500-5,000 |
| Typical first order | $1,000-3,000 |
This is the most variable cost and depends entirely on your product category. Key considerations:
Low-end ($500-1,000): Lightweight, small products sourced from Alibaba or 1688. Minimum order quantities of 100-500 units. Examples: phone cases, kitchen utensils, small accessories.
Mid-range ($1,000-3,000): Products requiring custom packaging or branding. MOQs of 200-1,000 units. Examples: branded supplements, cosmetics, home organization products.
High-end ($3,000-5,000+): Products with custom molds, complex manufacturing, or high per-unit costs. Examples: electronics accessories, premium kitchenware, specialized tools.
Rule of thumb: order enough inventory for 30-60 days of estimated sales. Ordering too much ties up cash. Ordering too little means running out of stock, which destroys your Amazon ranking.
6. UPC/EAN Codes
| Item | Cost |
|------|------|
| GS1 US membership (10 barcodes) | $250 (initial) + $50/year renewal |
| First year | $250 |
Amazon requires UPC codes for most product listings. You can buy them from GS1 (the official source) or from resellers. GS1 is recommended because Amazon periodically cracks down on non-GS1 barcodes.
Exception: if you enroll in Amazon Brand Registry (requires a trademark), you can use Amazon-generated barcodes (FNSKU) without purchasing UPCs. But Brand Registry requires a registered trademark, which takes 8-12 months and costs $250-350 (USPTO filing fee).
7. Product Photography
| Item | Cost Range |
|------|-----------|
| Professional product photos (7-9 images) | $200-500 |
| Lifestyle photos | $100-300 |
| Infographic images | $100-200 |
| Typical package | $300-700 |
Amazon allows up to 9 images per listing. The main image must be on a white background. The remaining images should show product features, dimensions, use cases, and lifestyle context.
You can do product photography yourself with a smartphone and a white background, but professional photos consistently outperform amateur ones in conversion rates. This is one area where spending $300-500 makes a measurable difference in sales.
8. Shipping and FBA Prep
| Item | Cost Range |
|------|-----------|
| Freight from manufacturer to Amazon FBA | $500-2,000 (first shipment) |
| FBA prep and labeling | $0.50-1.50 per unit |
| First shipment estimate | $700-2,500 |
Shipping costs depend on product weight, volume, origin country, and shipping method (sea freight vs. air freight). Sea freight is 3-5x cheaper but takes 4-6 weeks. Air freight is fast (5-7 days) but expensive.
For a first shipment of 500 units of a lightweight product from China to an Amazon FBA warehouse:
Sea freight: $500-800
Air freight: $1,000-2,000
FBA prep (labeling, polybagging): $250-500
The First-Year Total
| Category | Low Estimate | High Estimate |
|----------|-------------|---------------|
| LLC formation + registered agent | $200 | $250 |
| Business address (12 months) | $4,000 | $4,200 |
| Bank account | $0 | $180 |
| Amazon Professional (12 months) | $480 | $480 |
| Initial inventory | $1,000 | $5,000 |
| UPC codes | $250 | $250 |
| Product photography | $300 | $700 |
| Shipping + FBA prep | $700 | $2,500 |
| Total first year | $6,930 | $13,560 |
The realistic range for most international sellers is $7,000-$12,000 for the first year, including all infrastructure and a modest first inventory order.
Revenue vs. Cost: Is It Worth It?
A $7,000-$12,000 first-year investment sounds significant. But consider the revenue potential:
The median active Amazon seller generates $50,000-$100,000 in annual revenue
At a 20-30% net margin (typical for private label), that is $10,000-$30,000 in profit
First-year sellers often break even by month 6-9 and become profitable by month 9-12
Compare this to other business models:
Opening a physical retail store: $50,000-$250,000 first-year cost
Starting a restaurant: $100,000-$500,000
Launching a SaaS product: $20,000-$100,000 (development costs)
Starting an Amazon business: $7,000-$12,000
On a pure cost-to-revenue-potential basis, Amazon remains one of the most capital-efficient business models available to international entrepreneurs.
The Costs Nobody Tells You About
Beyond the line items above, budget for these often-overlooked expenses:
Amazon advertising (PPC): Most sellers spend 15-30% of revenue on advertising, especially in the first 6 months. Budget $500-1,500 for launch advertising.
Product liability insurance: Amazon requires $1 million in commercial general liability insurance once you exceed $10,000/month in sales. Cost: $500-1,500/year.
Accounting and tax filing: US tax obligations for foreign-owned LLCs vary. Budget $500-1,500/year for a CPA familiar with international LLC taxation.
Returns and damaged inventory: Expect 2-5% of units sold to be returned. Some will be unsellable. Budget 3-5% of revenue for returns and damage.
Second and third inventory orders: If your first product sells well, you will need to reorder within 60-90 days. Make sure you have cash reserves for at least 2 inventory cycles.
Do Not Be Misled by "$0 to Start" Marketing
Services that advertise "$0 to start selling on Amazon" are either:
1. Ignoring the infrastructure costs (LLC, address, bank account)
2. Using a CMRA/virtual mailbox that will fail Amazon verification
3. Omitting inventory costs entirely
4. Selling you on an Individual seller plan that cannot access advertising or the Buy Box
The real cost is real. But it is also manageable, predictable, and far lower than most businesses. The key is budgeting honestly, setting up your infrastructure correctly the first time, and not cutting corners on the address. Every dollar you save by using a virtual mailbox instead of a commercial sublease will cost you ten dollars in delays, failed verifications, and amendment fees when you inevitably have to switch.
Start with the right foundation. The rest is execution.
Related Reading
[What Is an LLC? A Guide for Non-US Founders](/blog/what-is-llc-guide-non-us-founders)
[US Bank Account for Wyoming LLC Owners — 2026 Guide](/blog/us-bank-account-wyoming-llc-guide-2026)
[Why Sell on Amazon US: Revenue Potential and Market Size](/blog/why-sell-on-amazon-us-revenue-traffic-2026)
[Amazon Address Verification Failed? How to Fix It](/blog/amazon-address-verification-failed-fix-2026)