Towards the end of April I returned to one of my income streams, Amazon. A couple years ago I was selling on Amzon and Ebay but only just a wee bit, mostly used books. This time around I’ve kinda jumped in the pond with both feet and wanted to share the results of the first full month.
when I did this before I did everything Merchant Fullfilled, where after the sale I would have to package and ship. I didn’t move a lot of product so this was not a big deal to me . FBA is where I send everything to Amazon and they deal with everything… Shipping, returns and customer service. I just send products in once a week or more often when I find lots of stuff. How do I get my ‘stuff’ , well there are many.
Retail stores can be quite good for finding products. I mostly check the clearance sections to find things 50-70% off that still sell well on Amazon for regular price or more. I know many people also scan regular or sale priced items and can make a profit off them. Me I have moved away from that model this month, just gets tiring and some times discouraging when you don’t find the right item.
My biggest source is garage sales, estate sales and thrift stores. These places can be a gold mine! Garage sales people are typically just trying to get rid of stuff so you can pick items up super cheap and would have a big profit margin. Estate sales can sometimes be the same way but some of the bigger, company run ones the prices can get out of hand as they do more research and are more into getting a good amount for their clients (and thus a bigger commission for themselves). Thrift stores to me are hit or miss, for the same reasons of estate sales. Some thrift stores are starting to look items up and prices are getting higher. There is even one that I won’t name that are selling items on eBay themselves.
Ok down to the reason you guys are here. I use to do monthly income reports, showing all my income streams. I still have some of those streams but for this one its just the Amazon sales. Im doing this to show people trying it out that it does work and you can make money this way. I may do this monthly or this may be the last one 🙂 I have been putting together a spreadsheet in Mac Numbers that tracks my inventory, sales, expenses and gives information like category percentage, Net Profit and ROI (I will have this available soon for purchase).
This is a screen capture showing that with $433.59 of goods purchased (109 units) they were sold on Amazon for $1912.47 with Amazon taking their cut of $636.75 (I hate that part) I was paid $1,275.72. So acre cost of good is taking out I had a gross profit of $837.44 (43.8%) which was a Return on Investment of 193%
Now I said GROSS profit. Still need to take out inbound shipping and expenses (shipping supplies and tools) So after that all of that my net profit was $539.64 (see chart below) Now the final profits numbers to me are a bit off because on a monthly level they are showing in bound shipping for all my shipments to Amazon that month. Many of those items of course haven’t sold yet. So its a lot of expense realized before the income comes in. Im thinking of moving all the inbound shipping charts to one page and then take the average shipping per item and apply it to each item sold. That way its a better looking number each month 🙂 The year end numbers will reflect all shipping and a more accurate running profit.
So looking forward my goal for June is to have $3000 of gross sales on Amazon along with adding items from eBay. The next image shows my FBA inventory as of this posting, items there and on the way this week, of $500 purchased and potential sales amount of almost $4,000. I also have tabs for Merchant Fulfilled and eBay inventory, which totals up on the overview page. This month I will be shipping only once a week now that I have a good inventory at Amazon, this should keep my inbound shipping down. Also last month I spent a bit more in supplies for start up that I will not have this month so hoping the net profit will increase a bit.
So that’s about it for the first full month back on Amazon. It can be done even on a very part time basis if you are looking for some extra income. I didn’t go into details on how to go about it and all the costs involved but if you have questions let me know. Ill be doing more posts on the how to’s with more info so stay tuned and follow the blog 🙂