You do not need thousands of pounds to start Amazon FBA. The right starting model for a tight budget is retail arbitrage — and it is a genuinely viable way to learn the platform before committing larger capital.
How little is "little"?
You can get started on Amazon FBA with as little as £100–£200. Here is a realistic minimum budget breakdown:
| Cost | Amount |
|---|---|
| Amazon Professional Seller account | £25/month + VAT |
| Initial stock (retail arbitrage) | £100–£200 |
| Thermal label printer (optional but useful) | £25–£40 (one-off) |
| Barcode scanner app | Free (Amazon Seller app) |
| Total to start | ~£150–£270 |
You do not need a website, a warehouse, or any staff. Your phone, a seller account, and some cash for stock are enough to make your first sales.
Step 1 — Start with retail arbitrage
Retail arbitrage is the lowest-capital entry point into FBA. You buy products on clearance or at a discount from high street retailers — supermarkets, discount stores, charity shops — and resell them on Amazon at a higher price.
To find profitable items:
- Download the Amazon Seller app (free)
- Use the barcode scanner to scan products on shop shelves
- The app shows you the current Amazon selling price, estimated FBA fees, and your estimated profit
- Buy anything where the margin works (ideally 30%+ ROI given the effort involved)
Popular hunting grounds for UK arbitrage sellers include Tesco clearance, The Range, B&M, Home Bargains, charity shops, and end-of-season sales at major retailers.
Step 2 — Understand your numbers before you buy anything
The most common mistake beginners make is buying stock without checking the fees. Always check:
- Current Amazon selling price (not the RRP — the price it actually sells for)
- FBA fulfilment fee (based on size and weight)
- Referral fee (usually 15% of selling price)
- Your purchase cost
Your profit = selling price − fulfilment fee − referral fee − purchase cost. Run this for every item before you buy it.
Step 3 — Reinvest your profits
The key to growing from a small start is reinvesting every penny of profit back into more stock. With a 30% ROI per cycle and monthly restocking, even a £150 starting pot can grow to £500–£1,000 in a few months.
As your cash balance grows, you can transition to online arbitrage (which is more scalable) and then wholesale (which gives you more consistent supply at lower margins but higher volume).
Step 4 — Graduate to wholesale or private label
Once you have £500–£1,000 in cash, you have enough to place a wholesale order. This gives you:
- A reliable supplier you can reorder from
- Products that already have demand and reviews on Amazon
- More predictable income than arbitrage
With £2,000–£5,000, you can explore private label — sourcing an unbranded product from a manufacturer, putting your own brand on it, and owning the listing. This is where FBA becomes a proper long-term business rather than a buying-and-flipping side hustle.
What you do not need to spend money on
A few things beginners often think they need but do not:
- A company (sole trader is fine to start)
- Expensive research software (the free Amazon Seller app is enough for arbitrage)
- A prep centre (you can handle labelling yourself at first)
- A VAT number (only required once you exceed £90,000 turnover)
Start lean, learn the process, and scale what works.