In this update I am showing how our Amazon FBA (Fulfillment By Amazon) business has really taken off!
For example, here are our monthly sales since we started in September 2016:
- September 2016: 3 units ($17.94)
- October 2016: 21 units ($389.02)
- November 2016: 124 units ($1,963.87)
- December 2016 (projected): over 250 units!!
The above sales figures are gross sales, so we have to account for expenses (inventory acquisition cost, Amazon fees, Paypal fees).
We always buy items at least 50% less than what they will sell for retail on Amazon, this allows for up to 30% of potential fees, so we maintain at least a 20% profit margin.
However, most of our sales have profit margins in the 30-50% range!
For example, we will buy an item for $6 and the total fees (Amazon, Paypal) will be $4, but we will sell this item for $16 (net income). So we make a $6 net profit ($16 sales price minus $6 item cost minus $4 total fees = $6 net profit).
In this example, our profit margin was net profit/net income ($6/$16) or 37.5%.
We follow a proven ecom system with awesome training and software.