Income reports are back. I’ve tried to maintain income reports since the beginning of Learning FBA. I took a few months off, and realized that since Income Reports still create a lot of traffic for the blog- maybe, just maybe, people still want to read them. True?
The way I like to format these reports are pretty simple. Lessons learned + Numbers = Improvements. I’ll tell you all the things I learned in the month of the report, report the final numbers, and then talk to you about the takeaways and how I’ll try to improve in the following months.
Let’s get started…
Inventory of PL 1
Lessons in January were a carryover of my idea to change my FBA strategy in 2015. You can read all about that on this blog post from December. With product 1 doing well, I’ve been trying really hard to just maintain inventory. This is probably the best worst problem to have. With this being a full fledged month of having inventory for at least 90% of the month, the numbers are awesome (don’t worry, you’ll read them soon).
I sent in one shipment of retail product in January. I’m going to be focusing most of my spare time on private label products and I expect to send in one shipment a month of retail product as we go through 2015- until Q4 where I will likely go back to retail because, let’s face it- Q4 is just crazy. My main focus with retail is to sell through some old inventory, and move on. I’ve toyed with the idea of training someone to shop part-time for me, but honestly, we’ll see how I feel about that as the year continues. I may just abandon all things retail.
The books still are not getting easier so I jumped back on with Inventory Lab. Have I opened it since? Nope. I’m just being honest. I’m a terrible bookkeeper and this may be the year I talk about getting an accountant. Know your weaknesses.
I pull all of my numbers straight from Amazon Seller Central, and the transaction reports. You have access to the same reports as a pro merchant.
Total Income $6,388.13
Amazon Expenses (2,226.59)
All other expenses (84.95)
This includes subscription fees for Appeagle, TaxJar, and Inventory Lab and a few supplies.
Net Income 2467.93
Guys, can you believe these numbers. I sent in one shipment in January outside of my PL product. If you recall my PL product report for January, sales for my PL product were $2,840.22. That means that 44% of my sales in January was one item. That’s just nuts. My margins for product 1 are also awesome at 53% which means that most of January I spent breaking even or making tiny returns for my retail product. I know this to be true because I was aggressively pricing Q4 product to move it out. I want to free up cash to invest more in my private label ventures. Where the returns are dismal, I’m pulling the product out and going where I can see better investments.
Writing this already half-way through February I know that I’ll still be struggling with inventory for my PL product. I know this is going to be an awesome opportunity in March. I’m going to run out in February with the Chinese New Year and I couldn’t be happier! I will be repricing product to make sure I don’t lose too much momentum but I’ll tell you this – when you think you should buy X quantity… double it.
In other news, I’ve launched a new blog called Forty Hour Rebel that is going to document my entire journey with building a new brand from scratch. The podcast went live on Friday the 13th via SoundCloud while I wait for iTunes to give me the green light. This experiment is going to go through every step as I do research to find the new product I’ll invest in. I decided to start from scratch so I could be on even playing ground with others who also want to start Private Label. If you are tempted to start Private Label in 2015, or just looking for a new podcast please join me on the new site.
Alright guys, that wraps up the first month in 2015. How did you do in January? Share your experience, I’d love to hear from you. I thrive on feedback and write these reports just for you!