November—a document month for my Amazon FBA enterprise with virtually £30,00zero in mixed gross sales from the Amazon UK and US platforms! If it have been 31 days in November, I might have safely reached that magic £1000-a-day or £30k-per-month mark. Arghh!
The overwhelming majority of these gross sales got here from the UK aspect of the enterprise, which makes me even happier as a result of final yr, round this time, I set a aim to succeed in £30okay in gross sales per 30 days by the top of 2018, and now I’ve achieved it!
Nicely, not likely. I do know that these gross sales numbers usually are not sustainable and can go down after the Christmas purchasing spree ends. We’ll speak extra about that later in the video because it’s an necessary speak to have now, proper earlier than the New Yr begins.
Issues on Amazon.com took an enormous flip too. For a number of causes, I’ve determined NOT to proceed my aggressive advert spend and as an alternative use the state of affairs to check a unique strategy, one thing that could be extra helpful for these of you with restricted budgets. We’ll get into the small print of this in the Amazon US outcomes part later.
November is all the time a particular month for gross sales due to all of the Black Friday week actions, and regardless that I didn’t take part in Black Friday by providing reductions or particular offers, I nonetheless managed to extend my gross sales and income fairly considerably. In reality, I’ll show to you, with the numbers to again it up, that I might NOT make more cash throughout this era even when I had provided gross sales costs on my gadgets.
Lastly, it’s December, and meaning two issues:
- My yearly weblog readers contest is simply across the nook!
- It’s time to do your annual planning process to set your objectives for 2019!
I’ll speak about each of those in extra element on the very finish of this video.
However first issues first, let’s begin with the numbers and learn how many gadgets I bought in the final month, how a lot I spent on promoting, and what I made as my NET revenue! Let’s get to it!
Amazon UK Outcomes
£27,761.00. That’s how a lot I made in gross sales on Amazon UK in November 2018! That is very clearly a record-breaking month for me and I couldn’t be happier about it. Whereas October didn’t present any indicators of elevated gross sales exercise, November was a standout month due in giant half to Black Friday week and the related advertising actions.
You possibly can see from the stats how gross sales change radically from the 21st of November, simply two days earlier than the precise Black Friday—which, by the best way, didn’t outcome in a report gross sales day. Nope, I made far more cash on the Wednesday and Thursday earlier than the large day than I did on Black Friday itself, and I even set a better gross sales document on Cyber Monday by promoting 140 models! That’s why, for me, Cyber Monday will now be referred to as Black Monday—or let’s simply name it the REAL Black Friday!
Listed here are the precise gross sales numbers for that week, so that you get a greater understanding of the dynamic:
Wednesday, 21st November: £1200
Thursday, 22nd November: £1120
BLACK FRIDAY, 23rd November: £950
Saturday, 24th November: £650
Sunday, 25th November: £1020
CYBER MONDAY, 26th November: £1400
Monday, with 140 models of the product bought and income of £1400, was a complete shocker to me! It’s virtually 50% MORE than Black Friday! A part of that may in all probability be attributed to the Monday itself as Mondays have traditionally proven wonderful gross sales, however it’s nonetheless rather more than I anticipated.
I personally select to not run any gross sales on Amazon throughout Black Friday week. As a vendor, I’m not an enormous fan of providing large reductions. From expertise, I do know that it is rather robust to make your presents stand out on Amazon amidst all that noise. You’re competing with tons of of hundreds of sellers, all of whom try to compete for a similar buyer. What’s the purpose in promoting 100 additional gadgets at half the worth if you don’t make any revenue from it?
In fact, for those who’re simply getting began on Amazon and have a comparatively new itemizing, this is usually a nice technique to spice up preliminary evaluations and probably even rankings with the brief spike in gross sales velocity. Nevertheless, don’t be naive and assume which you can merely low cost your product by HALF and out of the blue a whole lot or hundreds of individuals will flock to purchase it! It gained’t occur as a result of:
1) There’s nonetheless restricted demand for the merchandise you promote (until it’s one thing briefly fashionable with large demand).
2) Your deal will present up in the exact same search outcomes you compete with on any given day. You gained’t magically seem on Amazon’s homepage by discounting your merchandise. EVERYONE does particular offers throughout this week!
So, for a small-time Amazon vendor, your probabilities of making an enormous success out of Black Friday week are minimal. That’s why I take the standby strategy. I don’t do any offers and easily milk the income from all the additional clients this purchasing frenzy brings in. I’ve been doing this for the final three years and it really works nice!
I’ve tried quite a few Lighting Offers in earlier years across the Black Friday and vacation gross sales—they don’t work for me. I don’t know whether or not it’s the product or one thing else, however I all the time find yourself dropping cash on Lightning Offers, so I don’t do them anymore.
What I like about the entire Black Friday frenzy is that folks have a tendency to purchase extra and Amazon will increase its promoting to get clients purchasing throughout this particular week. Because of this individuals purchase MORE from me, although I don’t have ANY gross sales or particular promotions happening!
What concerning the revenue? Let’s take Cyber Monday for instance. I bought 140 models, which resulted in a revenue of 140 x £four = £560
My advert spend for that day was round £200, which signifies that my NET revenue for the day was £360.
£360 NET revenue is DOUBLE what I often see on a traditional day. All these further gross sales and revenue with out doing ANYTHING additional! No particular presents, no reductions—nothing!
Now, think about a state of affairs the place I bought my product at a reduction, say £6.99, which might be a typical Black Friday deal on a £9.99 merchandise. My revenue per merchandise bought can be decreased to £1.50, which signifies that I must promote 240 models—100 models extra—simply to make the precise SAME revenue as I did by sticking with the complete worth!
I can assure you that I wouldn’t get 100 additional gross sales by decreasing the worth to £6.99—not until I obtained extraordinarily fortunate and Amazon featured me on the homepage for the Black Friday offers. Typically, I don’t construct my companies on hopes and goals of utmost luck, random coincidences or fantasy calculations, such speculations are pointless.
Now, if we examine the gross sales knowledge from this November with final yr, you possibly can see that my TOTAL income has elevated from £17,277.49 in the earlier yr to £27,761 in 2018, which is a 61% improve from 2017! I do know that subsequent yr I gained’t even get near this type of big improve as a result of I now have a longtime presence on Amazon, with mature listings, and tons of of critiques, and so on. Final yr, I used to be simply beginning out with this model and my listings didn’t have traction in the search.
Okay, now let’s dive into the small print of this record-breaking month and learn how a lot PROFIT I made in November! Huge gross sales numbers are nice for the ego, but when your enterprise doesn’t truly make a revenue from it, what’s the purpose, proper?
Listed here are the numbers for the Amazon UK market for November 2018:
Complete Gross sales: £27,761.00
Models bought: 2,783
Revenue: 2,783 x £four = £11,132
That is the primary time ever that my revenue quantity BEFORE the advert spend reached greater than £10okay! And, much more than that, over £11,00zero—which is AMAZING!
Simply to remind you and inform people who find themselves studying my posts for the primary time, that is NOT an all-in-one sort of Amazon enterprise the place I promote plenty of all types of unrelated merchandise. In companies like these, it will be fairly straightforward to succeed in these numbers with the best information and capital.
What I’m doing right here is making an attempt to construct an actual brand-based enterprise that sells only one sort of product that has a number of design variations. It’s a distinct segment product, which usually has restricted demand on Amazon, so reaching £30okay in gross sales per 30 days is an actual achievement for any such enterprise. These of you who’ve taken my Amazon Sharks course will know precisely what I’m speaking about as I exploit this specific enterprise in the course movies as a real-life educating software. There, I get into the finer particulars of what this enterprise is all about, what the product is, how I run my Amazon enterprise, and so forth.
The £four revenue per unit that I’m utilizing in these examples is my NET revenue in any case the prices and costs are subtracted from the £9.99 promoting worth, together with:
- Product value and delivery to the Amazon warehouse
- Amazon vendor and FBA charges
So, it’s my revenue earlier than advert spend, and I do spend a LOT of cash on advertisements! The truth is, in November, I’ve considerably elevated my advert spend as a result of:
- I launched two new Christmas-themed variations of the product and I needed to get them ranked as shortly as potential to get gross sales and critiques in for this season.
- I began doing plenty of experiments with advertisements, particularly with the brand new PLACEMENT advertisements function which permits us to promote instantly on manually chosen competitor listings.
- I began utilizing particular software program for my marketing campaign administration and bidding referred to as Sellics.
I’ve briefly coated the brand new product placement promoting function in the Amazon Sharks Fb group, so ensure that to test it out! The group is totally free to hitch, and I frequently submit new info there masking subjects associated to the on a regular basis struggles confronted by Amazon FBA sellers.
Sellics is one thing utterly new to me, however I’m tremendous excited to share my ideas on it with you. I might be doing a full evaluate of it on my weblog, however, for now, I’m nonetheless experimenting with it and testing numerous options. I’ll say, from what I’ve seen to date, I prefer it so much!
It takes time to adapt to new software program, and it takes time to vary your bidding course of from guide to an automatic device, so, proper now, my advert spend is everywhere. Nevertheless, I consider that in the subsequent two months, I’ll get it underneath management and underneath an clever, auto-bidding management in order that I don’t should manually modify my bids anymore. As I stated, I’ll get into this extra in a separate weblog submit in January.
Anyhow, because of all this, my advert spend in November elevated to £four,539.31
Sure, on common, I spent £150 a day on advertisements! And, despite the fact that I’ve achieved nice rankings for a lot of of my product variations, I’ll proceed to spend cash on advertisements to maintain my gross sales velocity numbers, compete higher with new sellers in my area of interest, and to usually attain extra clients on Amazon.
Understanding the advert spend, we will simply calculate my pre-tax NET revenue for November 2018:
£11,132 – £four,539.31 = £6,592.69
That’s six and a half thousand kilos of pre-tax revenue in one month for an Amazon enterprise that sells in a distinct segment market and is only one yr previous. I’m tremendous completely happy about this end result and may’t watch for 2019 to return as a result of I’ve large progress plans in place!
However, for now, it’s nonetheless 2018, so let’s check out the yr to date:
Gross sales: £24,119.08
Gross sales: £15,316.28
Gross sales: £17,456.02
Gross sales: £14,644.62
Gross sales: £15,639.46
Gross sales: £15,850.70
Gross sales: £20,992.27
Gross sales: £15,068.33
Gross sales: £22,215.97
Gross sales: £21,127.09
Gross sales: £27,761.00
Gross sales: £210,190.82
(Complete quantity in Amazon studies is barely totally different resulting from returns/refunds changes which may occur weeks after I’ve created my month-to-month studies and weblog posts).
That’s the UK aspect of the enterprise. Now let’s speak about how issues are going with on the Amazon US platform!
Amazon USA Outcomes
In my earlier replace, I coated in element all the prices and numbers concerned in my Amazon US product, so I’ll simply shortly remind you of what’s what:
I’m promoting the product on Amazon.com for $24.99. This can be a totally different model of the product that I promote on the UK website. It’s primarily the identical product, however there’s 3 times extra of it bundled collectively as one product.
The product value: $four.20
Delivery to the US: $three.33
Amazon vendor charges: $three.75
FBA charges: $5.09
TOTAL product value, delivery and costs: $16.37
Revenue is: $24.99 – $16.37 = $eight.62 per unit bought
That’s the revenue quantity earlier than the advert spend, in fact. Identical to in the UK market, we have to subtract the advert spend to get the ultimate revenue quantity.
Within the final video, I confirmed you ways I launched the itemizing and began getting gross sales virtually instantly by doing aggressive PPC promoting. And it labored! Even and not using a single assessment, I had gross sales coming in.
If we take a look at the November gross sales figures, you’ll be able to see that it went as excessive as 15+ gross sales per day on one specific day. Wonderful, proper?
Not likely. I used to be spending an terrible lot of cash on advertisements to get these sorts of gross sales numbers. An excessive amount of cash.
Right here’s the factor: I do these month-to-month posts to doc my journey, share my story, and aid you profit from my information and expertise. And it’s all actual. This isn’t some made up present the place I cherry decide one of the best issues to say about Amazon or present solely the highlights of my very own enterprise and conceal the negatives. No, I’m telling you the whole lot precisely as it’s and I’m displaying you the actual state of affairs, with out making an attempt to decorate it up or make it look higher.
My aggressive bid strategy was not sustainable for this product. Bid costs are just too excessive, and I might have in all probability misplaced $10,00zero on this in November if I had continued. Thankfully, I’m not that silly.
However to make use of this example to my benefit, I made a decision to check an alternate strategy—one other PPC technique that principally includes beginning very slowly, bidding low on key phrases which have already transformed in guide or auto campaigns, after which rising all of it by SLOWLY growing bids.
As you possibly can see from the gross sales knowledge, I switched to the brand new PPC technique on across the 10th of November, and the outcomes are:
Complete gross sales: $2,074.17
Models bought: 84
Revenue: 84 x $eight.62 = $724.08
It’s not a number of gross sales, however it’s solely month two for this product! With this new, low-bid technique, I anticipate that it’ll take rather more time to realize rankings and develop gross sales in comparison with my aggressive bidding technique—and that’s completely advantageous!
One other piece of excellent information is that I now have TWO product evaluations in place! Each are good 5-star evaluations, and they need to assist me improve my conversion fee, which is under 10% proper now, and that isn’t acceptable.
I exploit the identical device for my after-sales emails and evaluation requests as I do in the UK. It’s referred to as Leap Ship and it’s a service device offered by the identical firm behind the favored Jungle Scout software. Getting two evaluations out of 100 gross sales is about the identical fee I get with my established UK listings, so I feel that half is about up appropriately. Now I simply have to get extra gross sales in. As I improve the numbers, the evaluations will comply with.
So, what about PPC prices? I spent an excessive amount of cash on advertisements early in the month, so the entire advert spend is $2,835.57, which is rather a lot and created a loss state of affairs for me:
Revenue made on gross sales was $724.08, minus the advert spend of $2,835.57 = a lack of $2,111.49.
I misplaced greater than $2000 on the Amazon US platform. Clearly, it’s not an entire loss as it’s an funding in gross sales velocity. In truth, it’s already beginning to present outcomes. In November, $1500 in gross sales got here from PPC campaigns, whereas greater than $500 got here from natural search. Because of this greater than 20 models have been bought from natural rankings alone, which is nothing superb, however it’s at the least a constructive outcome.
Additionally, don’t overlook that the entire Amazon US enlargement began as one huge experiment. I might NEVER get into this area of interest on the US platform if it wasn’t for my UK success. The competitors is extraordinarily excessive in this area of interest and, as you possibly can see, bid prices are excessive.
Anyhow, I’m not making excuses right here. I simply needed to remind everybody that the US numbers I cowl listed here are removed from typical. In reality, you’d by no means see numbers like these as you’d by no means get into this market in first place.
Okay, now all we now have to do is sum all of it as much as see the ultimate numbers for each marketplaces mixed!
As defined in my final submit, I’ll use XE.com for the change price. As I’m utilizing Transferwise for my US Amazon account settlements, these are the charges I’m truly getting for my funds. For those who’re promoting on Amazon.com and nonetheless utilizing your native financial institution to obtain funds, know one factor: you’re leaving some huge cash on the desk because of the horrible change price that banks supply. Take a look at my Transferwise information to see how one can simply change this and improve your income by getting as near TRUE market charges as attainable.
Clearly, change charges fluctuate all through the month, however I do all of this purely for illustration functions—this isn’t an accounting how-to video—so slight variations don’t make any distinction.
USA: $2,074.17 transformed to £1,626.90
TOTAL Gross sales: £27,761.00 + £1,626.90 = £29,387.90
Now let’s check out the revenue numbers:
Amazon UK: £6,592.69
Amazon USA: a lack of $2,111.49, transformed to GBP = £1,656.09
TOTAL Revenue is £6,592.69, minus the lack of £1,656.09, which equals £four,936.60!
Sure, it’s a couple of hundred kilos lower than the revenue I made in October—even with a better gross sales quantity! Clearly, the losses come from the US aspect, and it’s what it’s. For those who’re prepared to take a danger and do such experiments for potential achieve, you need to settle for potential losses too.
I’m not too nervous about making progress on the US website. If it really works out, nice! If not, I’ve loads of methods to develop the enterprise with out the Amazon US half.
What makes me even happier is the gross sales numbers I’m seeing for the primary week of December! A brand new report after a report month is being reached, which makes me smile all day lengthy, each day! 🙂
Okay, sufficient concerning the numbers. Let’s wrap up the video with some technique and plans for the longer term.
Whereas most individuals are already in the festive temper and taking it straightforward on the roles, I’m working as exhausting as I’ve ever labored! I’ve now utterly tailored to the four a.m. wake-up routine and sometimes accomplish extra in a single day than I beforehand did in an entire week! I’ll do a submit about this day by day routine in the Amazon Sharks Fb group very quickly, so in case you’re not a part of the group, now’s the time to hitch it! The group itself is 100% FREE to hitch, so there are NO EXCUSES to not become involved!
So, it’s not holidays for me—a minimum of, not but! Whereas I do plan on taking ten days off through the Christmas and New Yr interval, my desk is presently as busy because it has ever been! Listed here are just some main tasks I’m engaged on proper now:
1) The Shopify retailer. That is in all probability probably the most complicated one proper now because it includes a variety of conferences with the design workforce, builders, and so forth. If all goes to plan, I anticipate to have a reside store by the top of March on the newest.
2) Artistic supplies for the Shopify retailer. This consists of organising my product descriptions (I’ll have new ones written, in order that they’re not simply duplicates of Amazon’s), enhancing my pictures and the whole lot else. I additionally need to shoot a video for every product I promote and apply it to the web site in addition to on Amazon.
three) Commerce exhibits. As I’ve beforehand talked about, my plan for this Amazon enterprise and model for the subsequent yr is to take it to commerce exhibits and see how the offline world and clients react to it. I’ve booked three commerce exhibits for 2019, so I’m actively engaged on and getting ready for these. I’ll maintain you up to date about my progress on this all through subsequent yr’s movies.
four) Planning for 2019. Sure, I’ve already began to work on my plans, month-to-month milestones, and long-term goal-setting for 2019. I need to be achieved with it earlier than Christmas time, so I can depart the workplace with a transparent thoughts.
In addition to all of this, there’s, in fact, all the standard, day by day “business owner” stuff I have to maintain, like:
- An essential piece of equipment broke down, which halted our manufacturing line.
- An worker received right into a automotive accident, so I rushed to the scene to offer help.
- One other worker was leaving us for maternity depart, which wanted to be celebrated.
- On the similar time, I needed to rent two new staff, attempt to reorganise our workspace and negotiate higher phrases on our lease.
- Then, a pallet-worth of broken supplies got here in, in order that needed to be handled.
- On the identical day, my canine fell off the steps. Fortunately, Robby is ok!
- PLUS, there’s the youngsters and all the varsity stuff!
- After which I keep in mind that I’ve an exquisite spouse too and it has been some time since I took her out for a pleasant dinner!
- And so forth. and so forth. and so forth. ETC!!!!
IT’S A NEVER-ENDING NIGHTMARE! LOL!!!
Even amidst all that, I nonetheless have to seek out these two hours in the day to go to the fitness center as a result of with out it I really feel depressing. PLUS, I attempt to discover at the least a half an hour to play that good piano, particularly since I promised myself and the entire world that I might do it! 🙂
Yeah, not a lot Netflix time for me proper now…
However that’s enterprise—and that’s life! I’ve been doing this for therefore a few years that I’m simply used to it. And all these duties don’t out of the blue come to you someday. They construct up over an extended time period. You slowly uncover simply how succesful you’re, simply how a lot you possibly can deal with, and also you get used to it.
I didn’t even point out all of the hours every day that I put into managing my weblog, answering all of the feedback and emails, or creating content material for my weblog posts and Fb group.
I’ve additionally began engaged on further, new materials for the Amazon Sharks course. I hope so as to add it to the members’ space in early-2019. All these new movies will probably be utterly FREE for present Amazon Sharks clients, and as quickly as they’re added to the members’ space, I’ll inform you about it by way of e mail and the Fb group, nevertheless it in all probability might be in March or April on the newest.
In relation to the Amazon aspect of issues, over the subsequent few months, I need to add a number of further variations to my product line and convey the quantity nearer to 24 or so SKUs. I consider that that is the optimum variety of variations to hold on-line for this product, in addition to to current to retailers in the upcoming commerce exhibits. This solely means one factor: extra work on getting these new SKUs in manufacturing, getting pictures created, descriptions written, movies filmed, logistics organised, and every thing else.
As for the Amazon US aspect, I’m so busy with the UK plans proper now that I don’t have time to completely think about the US enlargement. To stop myself from going loopy from all of the issues I’ve happening proper now, I feel I’ll simply let the Amazon US aspect coast alongside at a sluggish tempo for the subsequent month or two. The product is promoting, evaluations are slowly coming in, so I’ll simply let it proceed to make the sluggish progress for some time. Then, when I’ve extra time on my arms, I’ll correctly increase the PPC to extend the gross sales velocity. I consider that that is the most effective factor to do in the present state of affairs.
To be 100% trustworthy with you, I’m beginning to remorse the entire US enlargement factor, particularly with all the issues it brings with it. I’m beginning to assume that it was not a terrific concept to dilute my time and effort by taking over the Amazon US platform. There’s simply a lot to do on the UK aspect of this firm! However because it stands, I’ve virtually 1800 models of the US product model left, so I don’t need to waste all of it—at the very least, not but. We’ll see the way it goes, however, strategically, I’ve decided that the UK progress into eCommerce and wholesale is my primary precedence proper now. If I’ve time and power left over, I’ll do some work on the US platform too.
That’s it for at this time. I hope that you’ve discovered a brand new factor or two from this month-to-month replace and, if not, I hope you at the very least obtained a motivational increase from seeing my outcomes. Even to today, I LOVE seeing different sellers’ dashboard and their gross sales and revenue numbers! It’s tremendous highly effective for motivation and that is among the explanation why I share my outcomes so brazenly with you. I hope it motivates you to exit and make it occur for your self!
On Thursday of subsequent week, I’ll announce my yearly weblog readers contest, the place I’ll give away £300 value of Amazon present playing cards! So, when you haven’t carried out so already, subscribe to my publication, comply with me on Fb and, ideally, be a part of the Amazon Sharks Fb group so that you by no means miss out on any information from me!
And when you haven’t began an Amazon enterprise but, what could possibly be a greater Christmas present to offer your self? Begin your personal enterprise and take management of your future! Should you want a step-by-step schooling on the way to do it, take a look at my Amazon Sharks program the place, in greater than 20 hours of video, I present you precisely how I constructed my enterprise, took it from ZERO to hundreds in revenue in just some brief months, and how one can replicate my success for your self!
When you’ve got questions or feedback about something I’ve coated in at present’s publish, depart them under. I’ll personally reply ALL of them inside 24 hours, Monday to Friday.
Have a tremendous vacation season!