Amazon FBA Business Startup Cost Comparison
San Jose, CA vs Houston, TX
San Jose, CA
$12,000 - $92,000
COL Index: 185.5
VS
Houston, TX
$8,000 - $67,000
COL Index: 96.5
Detailed Cost Comparison
| Expense | San Jose, CA | Houston, TX | Difference |
|---|---|---|---|
|
Business Registration & Licenses
|
$4,100 - $18,100 | $1,900 - $6,200 | +174% |
|
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)
|
$3,700 - $27,800 | $1,900 - $14,500 | +92% |
| Total Estimated Cost | $12,000 - $92,000 | $8,000 - $67,000 | +39% |
Local Market Factors
| Factor | San Jose | Houston |
|---|---|---|
| Cost of Living Index | 185.5 | 96.5 |
| Commercial Rent ($/sqft/yr) | $35 - $95 | $18 - $45 |
| Labor Rate Index | 1.55 | 0.92 |
| Sales Tax | 9.375% | 8.25% |
| Minimum Wage | $17.55/hr | $7.25/hr |
| LLC Filing Fee | $70 | $300 |
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