$10,000,000 Challenge – April 2022 Updates
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Hi everybody, my name is Gaye Lisby. As many of you know, my friend, brother, and co-leader in the Amazon Seller Tribe just did his March month-end review, and it was spectacular as usual. So, I have to get busy and do my March month-end review, and here it is. Let’s go through it really quick.
Here’s what’s inside our Inventory Lab Account. The first row is sales, and we ended the month with $190,334.29. That was a good month. I filtered this to March 20, 2022, so you can see the results.
As we go through the numbers, our total expenses at the bottom are $150,523. Of the 190,000 that rolled into our cash register, 150 of it was for bills. The costs come from buying inventory, paying our employees, paying the prep and ship cost, and paying refunds. You can also see that Amazon is extremely generous with their refund policy, as there was $27,001 out in refunds.
This doesn’t necessarily mean that product is a loss to us, because Amazon will give the refund and the customer is supposed to send the item back.
When an item is sent back, Amazon will review the item. If it’s not damaged, it can go back into active inventory. If it has sustained any damage or appears used, it will be removed and we will either liquidate it or bring it back into our warehouse.
We’ll look at it and see what kind of condition it’s in. If the condition can be graded for eBay use, we’ll sell it on eBay. Otherwise, we might simply donate it to Goodwill or one of the area thrift stores. Sometimes we will donate the returned items to the missions and projects we support in the Philippines.
When you scroll down, you’ll the list of our expenses in our own business. The reason I’m showing you this is so you know the truth. You deserve to have realistic expectations of what a business can make you when you start selling on Amazon. So if you’re looking here, you can see my total expenses, $150,000.
My total revenue or sales was $190,000+ and the total costs are listed as well. Gary has modeled this beautifully, and he’s taught this and coached this in our upper-level coaching program.
We’re having so much success in helping to create the most seven-figure sellers in the industry, because we’ll show you real numbers and not hype. We’ll show you the numbers that will help you create a business that changes your life.
How does $16,208.80 for March change your life? That’s our net profit after all expenses and after the cost of our inventory, shipping, Amazon’s fees, transaction fees, storage fees, and subscriptions such as inventory labs.
Our warehouse costs, security, service at the warehouse, prep and ship people, and buyers are all the hard costs involved in doing business on Amazon.
$16,208.80 in our pocket, and our bank account feels good. Feels great, and I’m okay with that. I’m grateful that March was a successful month. I’m afraid April might kick our butts a little bit, because our returns were a little higher. This is due to Amazon sending back any unsold inventory after a one year time period.
April’s profits won’t be as good, but $16,000 in March is great pocket money. Gary showed us what goes into analyzing our numbers. He makes some excellent observations and this is why, although he talks about me being his first coach, I need to talk about him being my best coach.
GARRY BEING THE BEST STUDENT
When I first started the team in the Amazon business, the man knew how to make himself a student. He just soaked up everything and employed everything. If I said, you know, you need to do this. He had it done before sunset. This is why he was the best student.
Garry is an amazing coach, and I’ll show you why. One of the things that he explained was what goes into your account is responsible for your account’s success. And so, let’s see what we shipped in. Once again, we talk about all the time about the fact that we are in an inventory-based business, and you can’t sell what you don’t have. This is not an MLM where you get money by signing people up under you.
We’re selling real stuff. We sell lip care products on Amazon for example. When the customer transacts, a portion of it goes into our pocket if we’re smart about how we buy.
In this particular screenshot, you will see our inventory listed during March. This is not the entire month on the screenshot, but I’ll show you the numbers. The total SKUs that we shipped in for March was 1,415 which means 1,415 unique units.
I might have sent in 20 of these. I might have sent in only 10 of these. And then the total number of units was 3,278. So 3,278 units went into our inventory. And at the same time, we’re creating the kind of proceeds you see here, the net profit.
Once again, we don’t carry any debt in our business. We think that’s extremely important. We also believe that that’s probably one of the number one mistakes that Amazon sellers make. Some sellers try to grow according to their debt flow instead of their cash flow. In other words, they charge a card and go into debt or sign a banknote, and they are ok with this.
The problem with Amazon is you have to, really, really watch your margins. When we first started selling on Amazon, back in 2014, the margins were a little better because Amazon’s fees weren’t as high. Now, Amazon’s fees are a little bit higher, so you have to be a good business person, watch your cost of goods, manage your prices, and make sure that you’re accounting for all the costs of doing business.
When you see the $16,208.80 that went into my and Colleen’s pocket, you’re going to say, not too great, Gaye, I can do better than that. Well, you probably can. But we do outsource almost everything we sell. We have two ladies that come and prep and ship for us.
Several times during the week, we have one full-time Online Arbitrage and Retail Arbitrage buyer purchase products for us. We also have one full-time Retail Arbitrage buyer that is a distance buyer. And then we have a part-timer, a college student, working for us as well. We also have an old lady who does our bookkeeping, reconciles our bank statements, and helps us prevent any fraud. She helps with some of the backend things as well. That’s basically what constitutes our company.
If you wanted to have more than $16,280.80 in your pocket, you could do more of the business related tasks on your own. You could do the buying and maybe the prep and ship too.
What’s happening in our account right now is we’re on track to do 2 million for 2022. A couple of weeks ago we said, let’s try for 2.2 in 2022, but that was so many twos. I just had to shave off one of the 2s and say we’re going to go with 2 million in 2022. I think we are on track to get there.
It looks good. We have to continue to push in inventory once again. If you don’t push it in, it will not sell.
Gary and I are really big on out the door in 24. You get that product in your hand, prep it, ship it, and get it out the door. This is especially true if you’re doing Amazon FBA. You ship it to an Amazon warehouse and when the customer buys it, it is send directly to the customer from Amazon’s warehouse.
Although we do some fulfillment by merchant (FBM), fulfillment by Amazon (FBA) is the model that we appreciate the most because of our current lifestyle. We’re over 60 now, and we like to power down instead of powering up, so we do FBA instead of FBM. There is nothing wrong with either model. They both have their own advantages.
When that inventory comes in, we want to get it out as fast as possible and get it to Amazon, so it can go live for faster purchasing and the very best possible price. Hopefully you can track along with us and see what we’re doing in our Amazon seller account.
If you’re seeing this, and you’re not an Amazon seller tribe member, maybe you need to take a chance with us and jump in. We offer a free seven-day trial. Please consider taking advantage of this offer. If you have been in our Amazon seller tribe before, but dropped out due to some life changes, consider coming back and boosting your business.
We always appreciate our people. We love our people, and we want to help you prepare to do the very best you can to make the money you want to make and see positive changes in your life. It happened for us, and that’s why we’re such big apostles.
I say this because selling on Amazon changed my life. As a middle-aged person I had to start over after a divorce. I was broke and needed to get my life and finances in order. The chance to sell on Amazon and start my own business has been such a blessing to my life. I hope that there will be a positive change in your life as well. Put in the same work I did and you too can get the same or even better results. Hopefully, this information is going to help you.