Welcome to the NewlyPreneurs’ Income Report! 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 $5,300 in profit this October, solely from selling on Amazon.com. In October, we focused more – WAY MORE – on growing the Online Arbitrage part of our business. So, our schedule changed quite a lot, and we only spent 1 full day a week doing Retail Arbitrage (RA) and about 1-3 hours daily doing Online Arbitrage (OA).
We also saw continued to have success with our Private Label (PL) product, racking up 70 sales in October. This all despite the fact that we had been extremely low on stock most of the month, making us raise the price to almost double the normal price to prevent us from running out of stock.
On a more personal note, we took some personal time to unwind and the spent 1 week with family in North and South Carolina. In North Carolina we relaxed at a nice cozy lodge in the Smokey Mountains and eventually had to scratch the sourcing itch so we did some Retail Arbitrage in South Carolina.
You see, an Amazon FBA biz gives you plenty of freedom to go travel, 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.
*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. That said, in October (Again!) we got hit with returns of high ticket items, so it definitely impacted our bottom line. However, not all of them were unfulfillable and many we got reimbursed for or can resell in Used condition. As it stands our 90 day return rate is around 5%, but when you sell big ticket items like we do it’s the dollar amount that hurts not the unit amount. Ughhh…
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.
–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 October with 17.36% in Net Profit, totaling $5,301.20. Like I said previously, we took a hit on returns and therefore our profitability took a hit.
Well, I didn’t have to do too much number crunching, because Inventory Lab allows us to keep our accounting in order and to have a real view of our business at any given time. If you haven’t already checked it out, you can get one month free by clicking HERE. It has saved us tons of time and allowed us to focus on growing our business and traveling more!
As you can imagine, we are stoked with the results but we aren’t complacent. Every month brings on new challenges and successes.
If you haven’t already read it, EJ wrote what we are calling “The NewlyPreneuer’s Manifesto” which is our newest game plan for our business. It not only breaks down what criteria we have for sourcing that will increase our profit margin, but it identifies how we will source product to grow our business in a way that will give us the freedom that we’re after.
In a nut shell, we’re upping our ROI standards, cutting out products with tiny profit margins, getting after replenishable items and looking to increase our Private Label product portfolio. (We’ve been testing out some new samples already which we’re pretty stoked about.)
All in all, as we “cruise” into December, the biggest month of Q4, we are making moves to get our Net Profit back above the 30% threshold.
Stay tuned for next months report to find out.
Catch you in the comments!
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