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Ali Lokhandwala

The answer you always wanted..

Published 6 months ago • 3 min read

Hey Reader,

"I have ₹10 lakh. Can you give the investment breakdown?"

This is one of the most common questions we get.

So, here's the answer:

90% of your investment will go into inventory, and the remaining 10% into basic setup & operations.

That 10% usually creates the most confusion, so here's where it goes:

- Company registration & GST (₹15,000-25,000)
- Brand registry & trademark (₹20,000-30,000)
- Product photoshoot & graphics (₹15,000-25,000)
- Transportation costs (₹10,000-20,000)
- Getting initial product reviews (₹15,000-25,000 - yes, it's important)
- Basic packaging & label printing (₹10,000-15,000)

And no—ads don't need upfront money because Amazon runs ads on post-paid billing (14-day cycle).

Hope this clears things up.

With ₹10 lakh, you're looking at ₹8.5-9lakh for inventory and ₹1 lakh for everything else.

Here's why this split makes sense:

Your inventory IS your business. Without products to sell, everything else is pointless. That ₹9 lakh inventory investment should get you 3-4 months of stock for 1 product, giving you enough runway to start generating cash flow.

The ₹1 lakh setup cost might seem high, but each expense serves a purpose:

Company registration gets you legal protection and better wholesale rates. Brand registry protects you from copycats and unlocks enhanced content features. Professional photos can double your conversion rate. Initial reviews give you the social proof needed to compete.

Many beginners try to cut corners on the 10% thinking "I'll do it later." Big mistake. Poor setup kills even great products. Would you rather launch properly with ₹9 lakh inventory, or launch poorly with ₹9.5 lakh inventory and wonder why nothing's working?

The beauty of this breakdown is that once you're set up, your ongoing costs are minimal. You reinvest sales revenue into more inventory, and your 10% setup investment keeps working for years.

Remember: Amazon rewards prepared sellers. The ones who skip proper setup to save money usually end up spending more fixing problems later.

See you then.

Happy building!

Ali Lokhandwala, India’s Top Amazon Expert

Once a champion, always a champion.

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Ali Lokhandwala

Once a Champion, always a Champion.

India's Top Amazon Expert | Generated over 50 Crore Revenue | Trained 15,000+ Entrepreneurs | I help businesses and entrepreneurs start and scale a profitable Amazon business.

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