Amazon FBA Business Startup Cost Comparison

El Paso, TX vs Los Angeles, CA

El Paso, TX

$7,000 - $65,000

COL Index: 86.2

VS

Los Angeles, CA

$11,000 - $85,000

COL Index: 166.5

Detailed Cost Comparison

Expense El Paso, TX Los Angeles, CA Difference
Business Registration & Licenses
$1,800 - $5,900 $4,000 - $14,400 -58%
Amazon Seller Account & Fees
$200 - $1,000 $200 - $1,000 Same
Initial Product Inventory
$1,000 - $20,000 $1,000 - $20,000 Same
Product Research & Development
$500 - $5,000 $500 - $5,000 Same
Branding & Packaging
$500 - $5,000 $500 - $5,000 Same
Shipping to Amazon Warehouses
$500 - $5,000 $500 - $5,000 Same
Amazon PPC & Marketing
$1,000 - $10,000 $1,000 - $10,000 Same
Working Capital (3 Months)
$1,700 - $12,900 $3,300 - $25,000 -48%
Total Estimated Cost $7,000 - $65,000 $11,000 - $85,000 -25%

Local Market Factors

Factor El Paso Los Angeles
Cost of Living Index 86.2 166.5
Commercial Rent ($/sqft/yr) $10 - $25 $30 - $85
Labor Rate Index 0.8 1.35
Sales Tax 8.25% 9.5%
Minimum Wage $7.25/hr $16.78/hr
LLC Filing Fee $300 $70

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