Today we have another guest post from Jonathan Gosz sharing a bit about his journey as a part time seller on amazon. Here is his post:
Hey everybody Jonathan Gosz here again giving a little update on how I ended the year as a part-time seller on Amazon while working a full time job.
In my most recent post along with sharing some financial numbers I discussed a little about my personal life, the different services I use, and some of my goals for 2014.
In this post I will share my numbers that I ended with in 2014, along with how I faired on accomplishing the goals I had set. I will also discuss some of my new goals for 2015.
For 2014 I had an initial goal of selling $100,000 in total revenue on Amazon, and along with that number I wanted to profit $35,000. I am happy to say I accomplished both of these goals and well exceeded the sales number!
Here is a screenshot of what my final sales numbers were for 2014 on amazon (click to enlarge):
In total in 2014 I sold a total of just over 4,000 units for over $113,000. I did just over $30,000 in December alone and this was by far my best month, possibly something to do with Christmas, but a lot to do with hard work.
Overall I am VERY pleased with these numbers as this was my first full year selling online and again only doing it part-time. These numbers also show me a few areas where I would like to improve, those areas being average sales price per order and average number of units ordered per customer. Now one of those is obvious, buy more expensive items and have a higher average sales price. The other not so much. One way I am going to try and increase my # of units per order is by focusing on items that have synergy with each other where customers may be inclined to buy multiple or two separate items that relate together.
Part of the reason I was able to achieve my profit goals that I set for myself was by keeping my overhead costs extremely low. What I mean by this is I only pay for services that I currently need and that I see the value that is added to my business. These services are InventoryLab and their Scoutify scanning app. This is able to hanldle my accounting needs as well as a mobile scanning app. I feel that these alone are able to help me run an organized profitable selling business. I do not currently use a repricer as I do that manually, though I plan to look at one in the future to see where the true value is. Along with this, I do not currently have employees or warehouse space so no other “extra” costs are taking away from my profitability.
Now, I will discuss a few of my goals for 2015
I am going to lay out a few different styles of goals for 2015, some related directly to sales and numbers, and others related to different styles of sourcing and work.
Sales goals – I am putting a sales # goal of $150,000 with an average sales price of at least $30. Along with this sales # goal I am shooting for $40,000 profit after all costs.
When setting sales goals I like to go back to the classic SMART goal scenario. For those not familiar SMART stands for Specific, Measurable, Attainable, Realistic, and Timely. This means that you want specific end points where you can see if you achieved the goal, make sure you have ways to measure the success, and make sure they are realistic and reachable.
Separate work goals – I would like to hire a part-time helper for some of my shipping needs for the Q4 season. This would most likely be a family member that I can help make some extra money and also expedite my shipping process when needed. I also have a goal of opening at a minimum 2 wholesale accounts that I can order at least $500 a month in product form. Finally, the last goal I will be sharing today is to build a relationship with at least one manufacturer so that I can eliminate the middle stages and purchase for a lower price.
I encourage everyone to set goals and hold yourself accountable to do your best to reach them.
Now for a little tip I would like to share. I encourage everyone to join some sort of small mastermind group. By this I mean join a group of 5-10 people that are likeminded sellers or in similar spots to you to share ideas and business process with. I recently joined a mastermind group with a total of 10 members almost all from Ryan’s Online Selling Experiment Facebook group. We have been a group since January, hold monthly group calls, and have a private Facebook group to share ideas, tips, and ask question to further our businesses. I believe this group will be vital to my success as I get further into my explorations of online selling as a legitimate business.
Along with my continued amazon selling I am working with Ryan on the Online Selling Reviews website where sellers can read reviews of products and services to see if they might be a good fit for their businesses. If you have any selling products, apps or services that you would like to see a review of message us on the Facebook page.
If you would like to connect with me send me a friend request on LinkedIn or leave a comment below.
Thank you to Jonathan for sharing his result for 2014, as well as the tips in this post. If you have any questions please let him know in the comments below.