Amazon FBA Income Report After The First Two Months

19 Comments

1. Sounds pretty good. Maybe another 2.5 months until you break even and 4 months until you are out of product.

   I think the “is it worth it” decision depends on what comes next. The time invested on this first one, plus the month, would make me think it isn’t even close to worth it as a one-off think to do (compare it to freelancing, which you could get a good hourly rate without the capital). But if you do it again, that hourly rate goes way up – it will take less time and you will be better at it.

   • Apparently Amazon is estimating I have stock for another 110 days so that sounds about right. I definitely agree that it would be more worth it if I decide to get another batch as it will be a lot easier. Overall all though even though I put in some time to get this running, I still should see decent returns and although it wasnt passive income setting all this up, its pretty passive now which is a good thing. The main difference with freelancing is that its an on going job. You have to keep writing to make money. With amazon, you just have to set it up then it goes on auto pilot which is why its a lot more appealing.

2. Sounds good to me too! Passive money is great! I’ve heard of people selling products they have found themselves and then sending it off to the warehouse and then selling on Amazon. What I have read is that they do well too. What do you think about that?

   • Oh yeah I have heard a lot about that method of selling as well. Its called retail arbitrage and people find clearance items from stock stores, then send it to amazon and sell it as a profit. Takes more work to get it done but from what I hear, there are plenty of people making good money from it.

3. Sounds like after the time invested up front this could be a good money maker with little time invested. If you reordered product, what would it cost you now that you already invested all the time up front. Assuming it would be cheaper. I still love to know what the product is. Can I buy one or maybe you can send me a private message with a preview? 🙂

   • Indeed! If I were to reorder, it would cost probably the same in intitial cost of goods and shipping but it wouldnt take much time at all. Only a few emails to get it going so it would be a lot cheaper as far as time invested.

     Haha yeah ill tell you what the product is once im done selling it. 😉

4. Awesome update, Alexander! I wish I was as far along as you are. It’s still a waiting game for me. The good news is that my product isn’t holiday dependent, so I’m not sweating the wait until mid-Dec. to get my products in…plenty of other things to do in the meantime. 🙂

   Has Amazon pulled any of your “disclaimer” reviews yet?

   • It must be brutal having to wait through the holidays but that is great that your product is not holiday dependent. Im going to be pulling hard for you when you start selling. Cant wait to read about it on your blog.

     Fortunately, amazon has not pulled any of my “disclaimer” reviews. Not sure why or when its going to happen but for now im grateful they are still there.

5. Thanks for the update Alex was wondering how it was going. It looks to me like you found a good niche to earn from hopefully you won’t get to many competitors. As I said in your last update, you’ve made it through the hardest part. Now just focus on getting more reviews and sales, the more sales you make the more Amazon loves you!

   • Yeah for now it seems pretty good. I just keep reading horror stories about amazon sellers getting hijacked and competition coming out of nowhere which leads to getting in to a price war. Ill keep my fingers crossed that doesnt happen for now. Ive been getting a few reviews since my initial launch which has been great although some of those reviews were not good because of items being broken apparently. For now I have a 4 star rating which is good and about 30 total reviews. Im really hoping sales take off after thanksgiving for the holiday rush.

6. Awesome job thinking outside the box to generate more income to buy rental properties. Plus on top of that to get a 20% return in your first year is amazing. Great work!!!

   • Thanks MSM!! I love making solid returns and trying to build my empire!! 🙂

7. Hey Alex,

   Looking at your remaining inventory numbers.
   How did you calculate the remaining profit?

   I see the total sales number as 625*38= 23,750.
   But the gross profit I calculated as this.
   3,867 / .30 = 12,890 / 1,000 = 12.89 / unit
   Then 625 * 12.89 = 8,056.
   23,750 – 8,056 = 15,694 gross margin. (Against your 17,644 above)

   To date you’re running at 25% of sales to amazon fees and 10% of sales to PPC

   So 23,750 * .35 = 8,312.5.

   So 15,694 – 8,312.5 = 7,381.5 net operating income assuming zero other expenses.

   Let me know if I’m off on my COGS, as thats most likely where I made my miscalculation.

   • Hi sunny!

     All I did was subtract the Amazon fees of 6106.25 from the total remaining sales left to come up with the 17644. (625 * 9.77) As I mentioned in the post, amazon reduced my fees down to $9.77 per unit sold which I am not complaining about.

     And then I lowered it down to $5k profit just on an estimate of how much I am going to spend on advertising and other costs. Who knows what the actual number will be until its all said and done. Thanks for checking it out!

8. Liking the numbers and the cool thing about this is that you’ve learnt a lot from the situation, which is probably the most important thing..

   Once you get the process settled, you can then scale larger and repeat the process with bigger numbers! 🙂
   Cheers for the updates and thanks Alex! Hope you’re well and enjoying Indy

   • Thanks Jef! I have indeed learned a lot from it. To be honest, im not quite sure yet if I will even continue this business venture. Ill have to make a decision soon though.

9. Very cool write up, hopefully you can successfully continue with this project and make a bit of money at the end.
   Good luck!

10. Hey thanks for the update, and it is a somewhat costly business. But a 20% profit is sure worth it. Amazon is making a killing I bet with all these fees they are making.

11. are you still selling in amazon, would it still be a good start in 2020 ?or what would be the best idea to I start for passive income ?
    is this really passive income after your product list in amazon ?