March 2014 Income Report

This is the first of my income reports and want to explain the reason I am posting about the money I am investing and making.

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 #1:

MarSales14

 

March 2014 was my first attempt in the world of FBA selling (I have previously bought and sold textbooks to buy myself a set of golf clubs during college). I decided to buy a few items and give it a try.

My total investment into inventory for the month of March was $530.96. As you can tell from the charts above, I did not break even for the month. There are two reasons this happened:

1. This was my first time selling FBA. There is a bit of a learning curve and I learned a few different things about shipping, sourcing, and the fee structure.

2. I actually sold all of my initial batch of products towards the end of the month and I took my money to reinvest it into new inventory (with the hopes it would sell in April).

As for the places I purchased products, I primarily shopped at Walgreens and at Goodwill for toys and some beauty items. I also sold some products in Pet, Grocery, and Health during my first month of selling.

Side note: I never actually invested any money from my checking or savings account into purchasing inventory. I strategically used credit cards to essentially loan myself money for the initial investment. If I was not able to cover my costs, I would then dip into my savings to pay off the remaining balance before the credit card bill was due (I will never pay interest on a credit card – I always pay off the entire card each month). This gives me about two months to turn my inventory and get paid by Amazon.

I would go into more detail about the services I used or other expenses that I had, but I really didn’t have any. I paid around $20 for the two shipments to a fulfillment center and I had about $10 in mileage (as the Walgreens was about a mile away from my house). I dropped my boxes at the UPS store for the free pickup service and I used some old boxes from around the house to ship items into Amazon.

Even though my results for March netted me a loss of money, I was able to do one thing that was extremely important: I was able to validate that the business model worked. I could actually walk into a store, buy something at a low price, and sell it at a higher price online. Finding out this information allowed me to realize that processes needed to be created to make sure I was profitable, but the idea worked.

CW

 

One thought on “March 2014 Income Report

  • January 13, 2015 at 9:48 pm
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    Hi Chris,

    I recently found you on YouTube and am really enjoying reading through your blog and income reports. My husband and I are really interested in getting started with FBA but find ourselves overwhelmed with information. We’ve decided to start in a similar way – purchase $500 worth of items to sell through FBA in our first month just to get the hang of it. It is reassuring to read your first income post to see that you did something similar and also to see your progress over time! Thanks for openly sharing your journey and story! It is much appreciated!

    Courtney

    Reply

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