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 a sweet $7 313.70 in profit this December, solely from selling on Amazon.com. December was our first month as official “Digital Nomads” and we chose to start in the beautiful, but cold Quebec City, Canada (where I am from) spending as much time as we can with friends and family. Therefore, the time spent on our business was a bit scattered. However, because we prepared for it, our business and income did not suffer.
Because we are really adventurous with our FBA biz, we decided to “test out” a Retail Arbitrage (RA) run while shopping with my mom. We found 5 videos games that we had already sourced in the US and saw it as a great opportunity to learn the ropes of Amazon.ca. It is not something that is going to make or break our profit, just merely an experiment. If you want to learn more about prepping and shipping products to FBA Warehouses in Canada, check out our video where we take you step by step from adding products, to shipping it to a warehouse in Canada.
After a couple of month of doing Online Arbitrage and focusing on replenish-able items, we struck some pretty sweet gold where we just keep buying the same products week in and week out. As a result, our Online Arbitrage is now more streamline and we don’t spent hours daily looking for good deals, rather focusing on our niches and finding similar products that we already had success with. (Read the NewlyPreneurs’ Manifesto for our new sourcing strategies)
UNFORTUNATELY, we ran out of inventory on our Private Label product in the beginning of December and due to one of the worst case Customs issues we did not have more inventory until January. Which, I admit is a good problem to have. That is, selling out of inventory, not running into issues with Customs.
Although these issues have definitively impacted our bottom line, we accept that Private Label is a new business venture for us and that overcoming these challenges now will only make our business stronger for the future.
We strongly believe that Private Label is the real future of our Amazon Business. While it is certainly very capital intensive and time consuming, it can be one of the most rewarding and scalable sourcing methods.
That’s why we ordered 5 different samples of new products during December, in addition to placing a second sample order on what we feel will be our second Private Label product.
*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 December (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.
Softwares & Services We Use and Recommend
–Inventory Lab ($40/month)
–Feedback Genius ($20/month)
–Merchant Words ($9/month) ***70% off forever with the Friends of Skip discount
Fees to Service Providers:
–FBA Fulfillment Company (Variable)
After crunching all of the numbers above, we wrapped up December with 23.22% in Net Profit, totaling a nice $7 313.70.
That said, we are really focusing on being more efficient with our spending so that we can consistently exceed 30% Net Profit each month. Because like we always say, getting more Sales and Revenue is the “Easy” part, but growing your bottom line and Net Profit is a whole other ball game that requires laser focus on spending, expenses and sourcing.
This month concluded our first year as Amazon Sellers and we are so gratefull to be able to share it with you. One year ago we decided to take the plunge and dive nose first into this business, and let me tell you, we don’t regret one bit of our venture.
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 our 0-30K Amazon Journey).
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 lifestyle of your dreams 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,