Welcome to the first NewlyPreneurs’ Income Report for 2016! We want to help you succeed by inspiring you to strive for a lifestyle where you are in control. We want to show you how an Amazon FBA business can be easily started by anyone AND from anywhere!
By publishing our monthly income report you will be able to see that this is possible, wherever you are in the world. As we publish this report, we will breakdown our successes and challenges, and of course, what country we call our #NewlypreneursHQ.
Whether you are just starting out or looking to grow your existing business, we’re sure that this income report will get you thinking and taking action, one way or another.
Now, let’s get down to business!
The Newlypreneurs’ FBA Business netted a sweet $7,533.74 in profit this January, solely from selling on Amazon.com. January marked the beggining of our Central America Journey and we had chosen to start in in beautiful Costa Rica for its “Pura Vida” Lifestyle and great beaches.
The first month was a bit of adaptation as we discover the “real speed” of Central America Internet and the “daily” electricity shut down. Therefore, the time spend on our business was a scattered as some daily task that took 1h were taking 3h here. However, as the business of e-commerce can be passive when you have good inventory, your income will rarely suffer you taking time off enjoying life and as you can see in this report our income did not suffer.
We have learn a lot of new pattern with Online Arbitrage and as a result, our Online Arbitrage is now more streamline and we don’t spent hours daily looking for good deals anymore, instead we focus on our niches and practices reverse engineering for items that we had success with. We are now ready to had an Assistant to our business and sourcing will be one of his/her task and we are hoping to cut some valuable hours on our week with that so we can create tons of content to share with you. We have been working hard and focusing on a big pictures for NewlyPreneurs and we can’t wait to share it with you.
Our Product Label part of our business is growing and we are now testing 2 new product that will be added to our current brand and 1 other in a new brand that we are working on marketing right now. We are really excited about all the possibility of Private Labelling (PL) and we see big part of our business growth coming from this part.
Nevertheless, after dealing with a customs issue about Marking for our current PL product and finally getting out of the custom custody 😉 after almost the entire month of December, in January we sold 94 Units for $4 815.25 in Revenue.
Our ROI % for this PL Sku is 152.85% which help greatly to our bottom line making for $2095.29 of our Profit. Product Labeling venture business for us and that have way more challenges than RA/OA. It is a learning curves and we will be happy to share it with you once we figured out and have more experience with it.
We strongly believe that Private Labels is the most “safe” bet for selling on Amazon as you are developing a real brand. As long, as you care about your customer and strive to make the best products available you will likely succeed. Again, private label is hard work and time consuming because most of the work happens before you actually see reward but it is a part of this business that we truly enjoy as we love building brands.
*As you know, refunds and returns are part of selling on Amazon. Even though you strive for the lowest percentage of returns possible and have high quality standards, returns are inevitable. Basically, it means that you’re selling. So don’t get all bogged down.
As a result, like every other seller online or not, we got hit with a high returns level and it definitely impacted our bottom line. However, we have created a large removal order and will have our prep company going through all of the items and report on condition. From there, we will know if we can return them to Amazon and in which Condition. We will also use eBay to sell out of inventory not proper for Amazon standards.
We have included all of our operating expenses and ALL the different fees charged by Amazon. Seriously, when we tell you our profitability, we aren’t hiding anything. I think the only expense not included in here is our rent and cell phone.
Please note, some of these expenses did not exist when we got started, however, we feel they are necessary to support the current size of our business.
Softwares & Services We Use and Recommend
–Inventory Lab ($40/month)
–Feedback Genius ($20/month)
Fees to Service Providers:
–FBA Fulfillment Company (Variable)
After crunching all of those numbers above, we wrapped up January with 22.35% in Net Profit, totaling a nice $7,533.74. Getting that % to go up 30% is harder than we though we are really making effort and focus on sourcing strategy to get that one up. Because like we always said, getting more Sales and Revenue is “Easy” but growing your bottom line and your net profit is a total other games that ask for laser focus on spending, expenses and sourcing.
We have big goals for our Amazon FBA Business this year as we are planning to grow our PL offerts to have 5 selling SKus by the end of 2016. One of the things, we will focus on in 2016, is procedure and automating so we have more time enjoying the city we are living in and fully embraced our Travelling Full-time lifestyle :).
After all, in less than a year, we were able to BOTH quit our 9-5 jobs, replace our income and become Digital Nomads (Read more about how we spend 76$ in inventory)
Thank you life (& Amazon)!
You see, an Amazon FBA biz gives you plenty of freedom to go travel and spend more time with family and friends, because AMAZON is a “Selling Machine” that works for you CONSTANTLY.
You just have to make sure you feed the sh*t out of your “Monster“, and you’ll be on the fast track. For us, this biz is all about supporting our lifestyle, traveling the world and, most importantly, having the freedom we craved so much in our “normal” 9-5 jobs.
We are so grateful for this opportunity, and we believe that you too can create the life of your dream and we are here to help you every step of the way.
Why make the same mistakes that we did when you can follow us and have the “short cut” opportunity? I am not saying that this business doesn’t take time, hard work and sacrifice, but here @NewlyPreneursHQ we strongly believe that together we can strive!
Catch you in the comments,