Amazon FBA Business Startup Cost Comparison
Orem, UT vs Los Angeles, CA
Orem, UT
$7,000 - $68,000
COL Index: 104.8
VS
Los Angeles, CA
$11,000 - $85,000
COL Index: 166.5
Detailed Cost Comparison
| Expense | Orem, UT | Los Angeles, CA | Difference |
|---|---|---|---|
|
Business Registration & Licenses
|
$1,300 - $6,000 | $4,000 - $14,400 | -60% |
|
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)
|
$2,100 - $15,700 | $3,300 - $25,000 | -37% |
| Total Estimated Cost | $7,000 - $68,000 | $11,000 - $85,000 | -22% |
Local Market Factors
| Factor | Orem | Los Angeles |
|---|---|---|
| Cost of Living Index | 104.8 | 166.5 |
| Commercial Rent ($/sqft/yr) | $14 - $28 | $30 - $85 |
| Labor Rate Index | 0.98 | 1.35 |
| Sales Tax | 7.25% | 9.5% |
| Minimum Wage | $7.25/hr | $16.78/hr |
| LLC Filing Fee | $54 | $70 |
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