Almost nobody in this industry will tell you what it costs until they have you on a call. That's a deliberate choice, and it's worth noticing. Here's the full cost structure of a managed Amazon store, including the parts that aren't a fee at all.
What Does Amazon Automation Cost?
There are four cost components, and only two of them are money you hand to anyone. A startup fee for building the store, a performance fee on profits, the platform's own selling fees, and inventory capital, which is not a cost at all but a conversion of cash into an asset you own. Confusing the last one with the first three is the single most common mistake people make evaluating this model.
- Startup fee. Covers building and setting up the store. Spent, not held.
- Performance fee. Ours is 10 percent of profits. You keep 90 percent.
- Platform fees. Amazon's referral and fulfillment charges, which come out before profit is calculated.
- Inventory capital. Buys products you own. Not a fee.
The Distinction That Changes the Math
When someone quotes a single big number for a managed store, they're usually adding a fee to an inventory budget and presenting the total as an expense. Those two numbers behave nothing alike.
A fee is gone once paid. Inventory capital converts into products sitting in Amazon's fulfillment network. When they sell, it converts back into cash plus margin, and you redeploy it. The same dollar does that repeatedly.
Ask any company you're evaluating to separate those two figures. A company that quotes you one blended number is either being careless or hoping you won't ask.
What the Fee Structure Tells You
How a company gets paid tells you what it optimizes for.
Paid entirely up front means the company's revenue is complete before your store sells anything. Their incentive ends at onboarding.
Paid a share of profit means they earn only when the store earns. If it produces nothing, they collect nothing on that side.
Our structure is a startup fee plus a 10 percent performance fee, so most of what we make depends on the store working after the build. That doesn't make us honest by itself. But it means the incentive points the same direction as yours, which is the thing to look for in anyone you evaluate.
What Amazon Charges Before Anyone Else
People forget the platform takes its cut first. Amazon charges a referral fee on each sale that varies by product category, plus fulfillment fees when FBA handles picking, packing, and shipping. There are storage fees for inventory sitting in their warehouses, and long-term storage surcharges if it sits too long.
These come out before profit exists. Any conversation about margin that ignores them isn't describing the business.
Returns are a real cost too. They're a normal part of retail at scale, and they land on the bottom line.
What You Should Actually Be Comparing
Two companies quoting similar totals can be offering very different things. Ask each of them:
- What is the startup fee, and what specifically does it cover? Get the deliverables listed.
- What is the ongoing fee, stated as a number? "Fee structure discussed on the call" is not an answer.
- Is the ongoing fee on revenue or on profit? A percentage of revenue gets paid even when the store loses money.
- How much inventory capital, held separately? And confirm you own it.
- What happens to unsold inventory?
- What voids any guarantee attached to the fee?
That third question is the one that separates operators. A fee on revenue and a fee on profit are not variations of the same thing. One is paid regardless of outcome.
Where Cashflow Creators Fits
Our structure is a startup fee covering the build and setup, and a 10 percent performance fee on profits. You keep 90 percent, you retain 100 percent ownership of the storefront, and you keep control of your capital and platform payouts.
Inventory capital is separate and it is yours. Minimum is $15,000 in liquid capital, with around $30,000 more typical because it gives a store better inventory runway. We also carry 90 day inventory buyback protection.
Clients who pay a startup fee are guaranteed at least a 100 percent return on that fee within 24 months of the store's first sale, measured in net profits. If the store doesn't reach it, we waive our performance fee until it does. Conditions apply, including consistent inventory purchasing and continuous operation, and an Amazon suspension pauses the timeline. Full terms are in our earnings disclaimer.
Related Next Steps
- → How Much Money Do You Need to Start?
- → Running Your Own Store vs Hiring a Consulting Company
- → eCommerce Management Scams: Red Flags to Watch For
FAQ
What does Cashflow Creators charge?
A startup fee covering the build and setup of your store, and a 10 percent performance fee on profits. You keep 90 percent. Both are set out in your agreement before you commit.
Is inventory capital part of the cost?
No, and treating it as one distorts the whole comparison. Inventory capital buys products you own in a store you own. A fee is spent. Inventory converts back into cash when it sells.
Why won't other companies publish their pricing?
You'd have to ask them. What we'd say is that a company unwilling to state its fee structure before a sales call is telling you something about how that call is going to go.
Are there ongoing software or tool costs?
Yes. Required software, tools, and team expenses are set out in the Services Agreement, and paying them is one of the conditions attached to the performance guarantee.
Does a percentage of profit mean you take part of my payouts?
You retain control of your capital and your platform payouts. The performance fee is calculated on profit, which means we only earn when the store does.
Get the Actual Numbers for Your Situation
Fee structure, capital requirement, and timeline for your specific case, in fifteen minutes. Our diligence materials are public first, so you can check us before the conversation.
→ Schedule a Free Consultation. Or read the Client Diligence Package first.
