The FBA Chronicles: I Finally made Amazon FBA Profitable!
It’s been quite a journey these past couple months but I have finally made Amazon FBA profitable!
I started out in May and started making sales in June, reaching profitability before a recurring cost set me behind again. Then, with some more sales I ventured back into profitability.
Looking at the table below it might look like I became profitable in June. Technically this is true but I did not count myself as profitable as I was in the middle of the OA XRAY free trial when it happened and I intended to subscribe so I was already including that cost.
Is it worth it
Now, with over $600 in sales and only $13 in profit it would seem I’ve done a lot of work for very little but those numbers are a little deceiving.
There are a few reasons that my profitability is so low.
1. My initial startup costs of packing supplies, most of which I’ll never use and includes 2 mistake purchases of the wrong type of Avery labels.
2. A $99 recurring fee for OA XRAY hit yesterday. This looks like a massive cost right now but will become less of a problem as I scale the business.
3. We’re only a week into June so those sales numbers do not reflect the total and profitability will likely go up with increases in sales. At the end of July I’ll have a much better idea where I stand with my margins.
Here’s what the average profitability looks like for the actual products I’ve sold. That’s for 26 units sold and just to be clear for anyone who is wondering, this is online arbitrage. I have not ventured into private label yet as I’m still learning.
There is of course a big caveat when it comes to saying that I’ve made Amazon FBA profitable, inventory. There is in transit inventory that is not accounted for in the Cost of Goods Sold, about $400 worth. Since I haven’t sold any of that then I am actually still in the red about $400 😀
Owell, I can dream..
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