When you started your Amazon FBA Journey, you will undoubtedly have set yourself some targets with regards to future success. Most of these targets that other people set are things like:
- Go Full Time as an Amazon FBA Seller
- Earn £100,000 Profit
- Make £10,000 in sales a month
- Make £1,000 in sales a month
- Get your First Sale
All of the above milestones are massive. Especially so getting your first sale, as this really shows you that you can find success on Amazon FBA. I wanted to challenge myself on Amazon FBA, yet set a realistic target with regards to my goal. I wanted to be able to achieve it, but not too easily.
I was a little shocked that I managed to hit £10,000 sales in a month, in just my second month on Amazon FBA.
Why is £10,000 Sales Good?
Without being Captain Obvious and pointing out that more sales is always better due to increased profits, there are many reasons why the £10,000 in sales is the ‘promised land’ for Amazon FBA Sellers.
This is because most FBA Sellers work on the minimum 20% Return on Investment rule. Quite typically, if you sell £10,000 worth of items, that’s a £2,000 profit. If you’re a full time Amazon FBA Seller, this is a good figure that will actually replace your full time job salary.
The truth is; I hit £10,000 with ease. This isn’t a brag at all, I was a little concerned how easy it actually was. I thought I would struggle a lot more, but it just shows how powerful Online Arbitrage is.
January and February are also known as the ‘quieter’ months, as most impulse buyers are running short on funds due to Christmas.
How did I manage this?
I’m unable to give away the item leads for this, as most of these are still great replens right now. However I managed to get this by:
- Using Selleramp extensively to check sales statistics.
- SellerToolKit to run on auto-pilot for any refunds or reimbursements I was due
- Cashback. Although this isn’t incorporated into the £10,000 Amazon figure, I earnt £650 cashback in February.
For full transparency, I was using my American Express Card and paying this off instantly. My credit limit is £11,000 and I never exceeded a maximum £11,000 spend. I also paid this off instantly with the money that Amazon was sending back to me.
Total Sales Figures for February (Month 2):
- Total Spend of £7,751
- Total Number of Shipments: 22
- Units Sent in: 639
- Units Sold: 575
- Total Sales: £10,224.31
- Profit on Sales: £2,015.04
- Virtual Assistants used: No
As you can see from the above sales figures, I actually sent in much more than I sold. I think this is the ‘rolling’ effect, where some items from January may have sold, and some items I have sent in are yet to sell. This is how the Snowball effect really takes shape though. If you can keep earning 20% on products that you send in, you’ll soon see the profits soaring.
Although I cleared £10,000 in sales, the profit doesn’t sound half as impressive. It worked out at just over £2,000 which is still very good, but I sacrificed quite a lot of time to do this.
It was relatively easy work, though. I simply looked at the best selling items, and joined in selling them. No super in-depth product research required.
If I was full time on Amazon FBA, it wouldn’t have mattered as much as it would be my typical working day. However, I think long term, I am already thinking of the Prep Center, Virtual Assistant requirements to help me continue with these sort of figures.
That’s something to consider. However, I think that it’s also vital for you to start with prepping items yourself and learning the process, as this will give you vital experience.
I have since slowed down my purchasing efforts, so I do not expect any record breaking months from April onwards. I am going to be starting a series for New Sellers on Amazon, showing them how they can start with £500 or less.
I think I’ve already shown how easy it is to scale when you have some financial backing. Now it’s time for a proper challenge!