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 #3:
As you can see if you look at my previous two months, this was a dramatic increase in sales. I finally got some additional free time where I was able to source more items and thus my sales increased once I got those items into the warehouse.
Before we get to the amount I invested into inventory and the amount I have spent on other items, I want to share part of my business model with you. I am currently not taking any money out of my initial investment from my credit card. As soon as I get paid from Amazon, I pay off my credit card balance and source more items to send into the warehouse. My numbers will show a loss, but that is only on paper. It is true that the inventory will need to sell for me to get my money, but I have faith (and a few months under my belt) to assure that I have a strong likely hood of this happening. Nothing is certain, but I find that investing into selling on Amazon has a lot better return than investing in the stock market.
Now to the numbers:
I sold $2,417.16 worth of product during May. This resulted in Amazon paying me $891.28 (with some remaining in my account, but not sent to my bank). I also invested $3,930.52 into a large batch of inventory (from Walgreens, Walmart, and Big Lots) towards the end of the month which accounts for the skewed numbers. Since I work a full time job, I actually source during lunch and bring the items back for packing in the evening. I have also upgraded my account to a Professional account due to the fact that I am selling over 40 items per month. This is an additional fee, but I actually save in the long run on other fees.
My main source of inventory were toys, beauty, and health from Walgreens. I also dabbled in purchasing grocery items from Walmart, which has turned out to be profitable for me. Here is the category break down for anyone who is interested:
I am trying to diversify my inventory to see what works the best for my sourcing and area. I hope to continue to increase the amount of inventory that is sent to the warehouses and I am also hoping to start having UPS pick up at the house so I don’t look crazy carrying in a ton of boxes to a UPS Store.
Like always, I am happy to answer any additional questions you may have. Just leave a comment below and I will get to it as soon as possible.