My income reports are not created to brag about the amount of inventory I have sold or how much profit I am bringing in each month. They are created to show the progression through the selling process and to motivate the readers that they can also produce the same results (note: I do not guarantee any results and all of my recommendations and examples are my own personal opinions). You will notice that I started off with very little in terms of investment dollars and you will also see when certain new ideas worked and when others did not. I am always open for questions and I will try to be as transparent as possible (but I am not an accountant, nor do I ever want to be one).
Here we go for month #2:
Looking back at April 2014 seems so far away, but it wasn’t that long ago. I was still getting used to the system of FBA selling and I was struggling with finding inventory to send in to the warehouse. I also started a new full-time position (with the selling of my old digital marketing company) and a lot of my free time went into that. My wife and I were also starting our house search (which is a whole story by itself) and I just frankly didn’t have the time to put towards selling online. I still had some inventory in the warehouse, but I only invested $293.24 into inventory.
If you take a look at the numbers this month and last month, you will notice that I am still in the red in regards the amount of money I have invested into selling online. I have invested $824.20 in inventory and I have only had $797.47 in sales. Take away the fees per sale by Amazon, shipping to the warehouses, mileage, and all that jazz and you will find that I am technically $400 in the hole. I look at this cost as tuition towards my Amazon education. I still believe that the idea works, but I am still making some mistakes and it is going to take some time before I can scale this any farther.
This month I switched my sourcing towards grocery items from Walmart and I was still picking up toys from Walgreens.
Since I am writing this in October 2014, I know what my path was and I am glad that I struggled at the start. Without struggling to figure everything out, I would have just given up. I found a challenge in figuring out how everything worked (and I wished I would have purchased some sort of class or book to help me avoid making some silly mistakes). My stubbornness about understanding the economics behind the process of selling was driving me to stick with it until I got it to work.