Amazon FBA Business Startup Cost Comparison

Paterson, NJ vs Chicago, IL

Paterson, NJ

$14,000 - $98,000

COL Index: 104.6

VS

Chicago, IL

$12,000 - $73,000

COL Index: 107.8

Detailed Cost Comparison

Expense Paterson, NJ Chicago, IL Difference
Business Registration & Licenses
$8,400 - $36,200 $5,600 - $10,900 +170%
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 $2,200 - $16,200 -3%
Total Estimated Cost $14,000 - $98,000 $12,000 - $73,000 +32%

Local Market Factors

Factor Paterson Chicago
Cost of Living Index 104.6 107.8
Commercial Rent ($/sqft/yr) $12 - $26 $25 - $65
Labor Rate Index 1.02 1.15
Sales Tax 6.625% 10.25%
Minimum Wage $15.49/hr $15.80/hr
LLC Filing Fee $125 $150

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