Amazon FBA Business Startup Cost Comparison
Los Angeles, CA vs Houston, TX
Los Angeles, CA
$11,000 - $85,000
COL Index: 166.5
VS
Houston, TX
$8,000 - $67,000
COL Index: 96.5
Detailed Cost Comparison
| Expense | Los Angeles, CA | Houston, TX | Difference |
|---|---|---|---|
|
Business Registration & Licenses
|
$4,000 - $14,400 | $1,900 - $6,200 | +127% |
|
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)
|
$3,300 - $25,000 | $1,900 - $14,500 | +73% |
| Total Estimated Cost | $11,000 - $85,000 | $8,000 - $67,000 | +28% |
Local Market Factors
| Factor | Los Angeles | Houston |
|---|---|---|
| Cost of Living Index | 166.5 | 96.5 |
| Commercial Rent ($/sqft/yr) | $30 - $85 | $18 - $45 |
| Labor Rate Index | 1.35 | 0.92 |
| Sales Tax | 9.5% | 8.25% |
| Minimum Wage | $16.78/hr | $7.25/hr |
| LLC Filing Fee | $70 | $300 |
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