Amazon FBA Business Startup Cost Comparison
Newark, NJ vs Houston, TX
Newark, NJ
$17,000 - $115,000
COL Index: 115.2
VS
Houston, TX
$8,000 - $67,000
COL Index: 96.5
Detailed Cost Comparison
| Expense | Newark, NJ | Houston, TX | Difference |
|---|---|---|---|
|
Business Registration & Licenses
|
$10,600 - $51,700 | $1,900 - $6,200 | +669% |
|
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)
|
$2,300 - $17,300 | $1,900 - $14,500 | +20% |
| Total Estimated Cost | $17,000 - $115,000 | $8,000 - $67,000 | +76% |
Local Market Factors
| Factor | Newark | Houston |
|---|---|---|
| Cost of Living Index | 115.2 | 96.5 |
| Commercial Rent ($/sqft/yr) | $16 - $38 | $18 - $45 |
| Labor Rate Index | 1.14 | 0.92 |
| Sales Tax | 6.625% | 8.25% |
| Minimum Wage | $15.49/hr | $7.25/hr |
| LLC Filing Fee | $125 | $300 |
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