First Month Complete – October 2013 Financial Results

November 7th, 2013

As a part of this blog I am going to be sharing the financial results on a monthly basis to provide transparency into exactly how much I am making through the online selling operations.  The goal is that over a few months’ time to show that it is possible to completely replace the salary from a “normal” job.

A little background in the time I spend working on the online selling business:

During October I would say I worked an average of 6-7 hours per day on days that I worked on selling online.  This includes time spent purchasing products to sell, researching products to resell, packing items to ship, and responding to any emails with customers.  I generally work only on weekdays.  The rest of my time is spent working on items for the textbook business, or doing things I want to be doing.  I will track the time worked more specifically in future months to provide a better idea of the time invested.

In addition during the month of October I was in Las Vegas from October 3rd through the 8th as sort of a quitting my job celebration.  This resulted in 3 working days that were missed.  In addition I went back to my parent’s house from October 21st through the 24th.  This resulted in an additional 2 working days missed.   So, I basically used 5 vacation days in this month, and didn’t have to get approval from anyone.  Obviously, taking these days off resulted in no additional income, so a balance definitely needs to be struck between working and time off.

This is the story of how I started selling online. Now I run a 7-figure selling business. Are you ready to get your business started? You can learn everything you need to know in my self-paced course, Make Your First $1,000 Selling on Amazon. From setting up your seller account to finding profitable inventory to getting the right legal protection — it’s all here. Learn more now.

With that information out of the way let’s get to the numbers.  The numbers below are basically the profits that I am making for the month.  The profits are calculated only on items that have been sold and shipped.  They were calculated by taking selling prices, minus all fees, minus all shipping and packaging costs, and subtracting the cost of the items.  This won’t be the exact number that goes on my tax returns as there will be additional deductions for mileage, cell phone, home office, etc.  However, these are costs I would generally be incurring anyway, so for simplicity I will be leaving them out of the calculations.

october results take 2

 

These are the profits from each source.  The difference between amazon merchant fulfilled and amazon fba (fulfillment by amazon) is the following: for amazon fba you ship items in bulk into amazon and then amazon ships them as they sell, while merchant fulfilled means that I stored the items myself and shipped them when they sold.

Here are some additional screenshots from amazon and ebay to show the total amount of sales from each that led to these profits.  Keep in mind that the sales are before all fees, it is the total amount the customer paid to amazon or ebay.  The one on the top is amazon, and the bottom is ebay.  If you click on either one they will enlarge to show more details.

amazon october screenshot ebay october sales

 

So, $2,200 a month equates to $26,400 per year.  I could definitely live off of this, but I didn’t quit my job for this amount.  Overall, for the first month in, I am pretty happy with the results.  I have learned a lot already and expect things to trend upward.

Goal for November: Minimum profit of $2800.  This is an increase of a little over 25% from the prior month and I think it is very obtainable given that I am starting to build up a decent inventory.  Another goal for the month is to have over 40% of the sales be from amazon fba as opposed to about 17.5% from last month.

So far, the experiment is off to a good start, and I believe I am on pace to replace my salary within a few months.  Stay tuned for future results! If you have any questions or suggestions you would like to see in the monthly reports or in a standard post, please let me know.

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35 responses to “First Month Complete – October 2013 Financial Results”

  1. Sherri says:

    Can you explain why you have both accounts with Amazon and what products you FBA and what you ship out. Thanks will keep checking on your adventure! I’m on the same path, just started eBay and working towards Amazon. Take care Sherri

    • admin says:

      Hi Sherri,

      Yes I would be glad to. For amazon you are able to both FBA and merchant fulfilled under one account, which is really nice. I utilize both features of the account as they both offer certain advantages. Fullfillment by Amazon (FBA) is great for shipping in many bulk items that may not have a huge profit margin. For example, shipping in about 10 of a small toy that you would only make a few dollars each on. Doing it in one shipment makes it a much more efficient use of time. I have been using merchant fulfilled for more valuable items that I wasn’t sure if they would sell and wanted to be able to list on ebay if they did not. Overall, I am finding that amazon fba is a very convenient service, and I am going to work to use it as much as possible.

      Please let me know if you have any questions, and I will be sure to post more about this in the future!

      -Ryan

  2. Char says:

    Great post, I have subscribed to follow you, thanks for sharing!

  3. sharon says:

    If you don’t mind saying, what types of items are you selling thru ebay and amazon? I am brand new as well however my profit is not nearly that high and I did not quit my job but am able to put in the needed hours because I was let go from my job. Thanks for putting this info out there for us to learn, that is one thing I have learned about ebay and amazon sellers so far they are helpful.

    • admin says:

      I don’t mind at all. Through ebay I have been selling primarily clothes for the past month, and a few electronics. Through amazon I have been selling mostly electronics, toys, games, and books. There are random items here and there as I will buy basically anything that looks like I can make a decent profit on, but these are the main categories I have been selling in.

      Let me know if you have any other questions!

      -Ryan

      • Sharon says:

        Thanks for quick reply. I am looking for a personal mentor since I am new if you or someone you know is interested in having an intern or person to mentor please let me know. Sharon

  4. […] First Month Complete – October 2013 Financial Results […]

  5. […] online since quitting my job in September.  You can find the post with October’s results HERE, and November’s results HERE, if you would like to compare to my results this month.  From […]

  6. DeAnna says:

    Hi Ryan-

    I am also interested in mentoring/coaching with you. Please email information.

    Thank you!

  7. Jim says:

    Hopefully you see the need Ryan to go the informational product or coaching route. haha

    • Ryan Grant says:

      That is definitely something I am considering adding soon, I just have to figure out where I want to spend most of my time.

      Best Regards,
      Ryan

  8. Desiree says:

    Love your blog! I’m curious what you had for startup funds? Thank you and congratulations on your success!

    • Ryan Grant says:

      Thanks Desiree! I didn’t really start with an exact amount as I was doing this part time for several years and just kept rolling the money over from that. I would say I started with about $5,000 when I started full time. I wish I had a better answer for you, but I didn’t have a separate bank account that I transferred money to at the beginning, so unfortunately it’s a slightly fuzzy number.

      Best Regards,
      Ryan

  9. Carol says:

    Ryan,

    What was the ROI you were willing to accept when you started this? I have very little startup funds and have just started buying some toys to get a taste of FBA. I am curious to know which categories/niches have given you a better ROI, now that you have done this for a few months. Look forward to hearing from you!

    Carol

    • Ryan Grant says:

      Hi Carol,

      When I first started I was looking for 100% ROI on everything I purchased. I have done well in a large variety of categories, but toys has been consistently #1 thus far.

      Best Regards,
      Ryan

      • Caroline says:

        I too had 100% ROI in mind. But I wonder if sourcing online yields lesser returns than going store to store. Anyway, thanks for letting me know! 🙂

        Carol

        • Ryan Grant says:

          No problem! Online sourcing typically has slightly lower returns than in store, but the margins are still there and it can be significantly less work.

          Best Regards,
          Ryan

  10. Emi says:

    Been reading through your entire blog the past week, and I’m thoroughly impressed! I’d like your thoughts about entrepreneur anxiety. I’ve seen a couple friends start their own private business with their savings, and for a while they’d constantly stress about spending when there was not an equal amount coming in return at first. Even though they set a chunk aside to give their business a kick start.
    I am considering getting into FBA, but was wondering if you ever went through a stress phase, or if not, how long did it take for you to realize that buying a lot of inventory up front was worth it?

    • Ryan Grant says:

      Hi Emi,

      That’s great to hear you have read through my whole blog, thank you!

      As for the anxiety, I don’t think I really went through a stress phase. There were certain times where I would be slightly uncomfortable with a buy, but I generally got over it pretty quickly as items started to sell. I will say that I am a pretty risk tolerant person financial wise though.

      Here’s what helps me when buying a significant amount of inventory at one time. I look at what the item is currently selling for online. As long as it’s selling for a price that allows me to make a decent profit, then I am comfortable with my buy, I just have to have the patience to wait for my item to sell. I also find that not watching your sales constantly helps you to not worry about if things are selling as much. In this business you have to put up money in order to make money, and the more you do it the more comfortable it will become.

      I am not sure if this is the type of answer you were looking for, so please let me know if you have any follow ups.

      Best Regards,
      Ryan

  11. Christine says:

    Ryan,

    I’ve been reading through your blog a lot lately because I’m trying to start FBA. I’ve been going out to stores almost everyday for the passed week, but I’m having some trouble finding good items to sell and was wondering if I could get some guidance from you. I’m so impressed with what you’ve been able to do in just a year and would love to learn from your success!

    Thanks!

    Christine

    • Ryan Grant says:

      Hi Christine,

      Thank you for the kind words! My advice would be to keep at it and keep going to the stores. It takes some time to get the “eye” for what is a good seller and what is not, also keep in mind that I had been selling online part time for several years prior to going full time. Keep trying new things, and trying out new strategies. I do plan on addressing sourcing more in future posts, so stay tuned.

      Best Regards,
      Ryan

  12. Fred DeVico says:

    You’ve come a long way in a short time. You are a insperation to the rest of us. Keep on trukin.

    Thanks for your Blog.

    Freddy D

  13. Alexey says:

    hi i have a question, if international sellers without us bank account can sell on amazon?

    • Ryan Grant says:

      Hi Alexey,

      I am not sure about that one. I would recommend reaching out to Amazon to see their answer.

      Best Regards,
      Ryan

  14. […] Amazon full-time, I did about $3,000 in sales.  You can read the full results post for that month HERE, but my point is to show that this started off on a very small scale.  If you read through some of […]

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