- Hey everyone, my name is Kris,
and in today's video,
I'm going to be giving you an honest look
at my Amazon FBA business in 2020.
I'm gonna be going over everything that happened,
the good and the bad.
We're gonna look at the numbers,
I'm gonna show you profit,
as well as the most profitable items
and also the items that we lost some money on.
And then at the end,
I'm gonna go over
my strategy for 2021
and hopefully you can implement some of that,
whether you're an experienced seller
or you're just getting started.
So, let's get to it.
Now really quick before we get started,
if you haven't downloaded this free book
on my website, krismccauley.com,
you can,
just to give you a high-level overview
of what it is that I do.
And also you can check
out my new book that I will be finished with
in about 30 to 60 days,
The Wait-list, is also on my website.
So be sure to check that out, let's get to it.
And if you do find any value
in this video and you wanna support the channel,
I consider you smashing that like button
and subscribing for more videos like this.
(soft ambient music)
Okay, so right away,
I just wanna go ahead and jump straight to the numbers.
And at a high level overview,
we did 2.6 million in the business this year.
And I wanna talk
about some things that happened at the beginning of 2020.
So let's go ahead and talk about this.
It was at the beginning of 2020, my business partner and I,
we made the decision to get a warehouse
and completely restructure our business.
Now, can you do Amazon
without a warehouse or anything like that?
Absolutely.
And from my experience,
I usually see people start getting
into warehouse rentals and whatnot
around the seven figure mark.
Some people do it a little before,
and some people do it a little after,
it just depends on maybe what you're selling
and the logistics of where you're at
and all those other things.
But regardless, we decided to make that move.
Now, while we were doing that, COVID was happening.
And all of our manufacturers
that we were purchasing from were on back order.
And so everything was kind of up in the air.
And at that same time, Amazon was only letting us
send in supplements.
Because of the COVID restrictions,
they were only allowing us to send in,
I believe five categories at the time.
And luckily for us, one of the categories
that we sold supplements,
we could still send those in.
But everything else had to be merchant fulfilled.
And we just did not explore that option at the time,
so that was a mistake that we made.
But anyway, these numbers that you're seeing
on the Amazon account side of things really only
transpired mainly between June and December.
So we did 1.9 million in revenue on Amazon,
really in six to seven months.
And so I'm pretty pumped about that.
Now let's go ahead and talk
about these numbers a little bit.
So I'll show you where they're coming from too.
So, we had two Amazon accounts, the first Amazon account
which I'm gonna show you the statistics on,
we did about 1.3 million in revenue.
The second Amazon account
that we were selling on, was about $600,000.
So 1.9 million in revenue there.
Now, we had an eBay account.
We roughly did around $150,000
on that eBay account and distribution orders.
So, between January and June,
because we weren't selling as much on Amazon,
we were doing a lot of distribution orders
in our mentorship group.
So, we sell items to people in our mentorship program,
and they can purchase these for a profit to sell.
Now, we were relying heavily on this,
because we were saving up our money to get into a warehouse.
And that roughly cost us about $20,000.
And I've talked about that in a couple of other videos.
And then lastly, we have inventory at the end of the year
which is about $145,000.
Now the estimated profit on all of this is around a 400,000.
And the reason why I say estimated,
is because our bookkeepers aren't done yet
tallying everything.
So, I don't know that to be certain,
but I do know the ballpark in which that is.
And so across all streams
of income outside of this, it was about 400,000.
Just Amazon sales, probably around 300,000, I would say.
So let me go ahead and get
into the numbers and we can go ahead and go from there.
So first, let's go ahead and look
at the main account that we have hooked up
to inventory lab
and inventory lab is a software
that allows you to really track your data.
And I don't care what business you're in,
I don't care what you're doing.
Whether you're running a restaurant
or you're running a McCarty store,
you need to know your numbers,
and knowing your numbers is one
of the most integral parts of running a business.
And it'll allow you to, it's one of the main reasons
why businesses go under.
So, really quickly, you can see that in,
we really did a lot of sales.
I mean, look, this is what I was just telling you guys.
Mainly most of our sales, we did $21,000
between January and June,
and then June things really started picking up.
And then August is when things really started getting crazy.
And then in December we did $336,000 on that account.
Now, I would not pay attention to these profit numbers.
They are close, but I mean they could be off
by 20% positive or negative.
The main reason I get in here, I don't really get
into my profit and loss section much in inventory lab.
It's really just for the sake
of showing you guys this one main account.
And so that's the main reason why
when I'm looking at this,
and I'll get into my 2021 goals.
But even though we only did 2.5 million this year,
I think we can do a lot better.
So, I'll get into that later on.
Now let's go ahead and look at our categories, right?
Now, I get asked this all the time.
Kris, what categories do you sell?
I'm going to say this, I'm gonna say this one thing.
This is just one Amazon account, the $150,000 of Ebay sales,
those were mainly video games and toys and games.
The other Amazon account that we had did about $700,000 on,
I don't have those exact numbers.
Those were mainly electronics and video games as well.
So, the numbers might be more skewed here,
looking towards health and beauty.
But if you been following my journey for a while now,
you know that I'm big on health and beauty.
And so supplements really, supplements.
And you can see that we did over 20,000 units
in supplements, and we did over 9,000 units
on this account in video games.
So, we can see total profit,
you can see ROI, all that stuff.
And when it comes to video games, your margins,
that is pretty typical.
You're going to get lower margins.
But, it's fine because some of these units
are moving so quickly.
Like we had a one unit and I'll show it
to you guys here, that we got into in Q4.
We sent in 300 units and they all sold out
in a couple of days.
So, okay, now that you know our categories
that we're dealing with,
let's go ahead and get into ASIN profitability, right.
And so, I'm gonna go ahead
and start with the ones that are our biggest wins.
And I'm only gonna show you a couple,
because I don't wanna show you all of them because
some of them we're still selling.
But this right here,
so we have this Cronus controller
and we did about $27,000 in profit on that.
Now, I do wanna say that even though,
we have refunds over here, that does count,
inventory lab does account for refunds.
And so we did about $27,000 in profit on that one skew.
And that was just across about a half a month.
So we did that in about two weeks on one skew
and that was a 75% ROI.
So that was probably our best item all year.
Now, the next item that I wanna talk
about is these Nacon controllers.
These were a kind of, hit or miss for us.
We did about $18,000.
We did have some refunds here, as you can see,
but we still did after all those refunds,
$18,000 in profit.
I do wanna say that when you are looking
at these profit numbers,
they are going to be a little bit lower
because it doesn't account for us getting our money back
on the ones that Amazon deems non sellable.
So, when Amazon deems something non sellable,
that inventory that you have
just doesn't go to waste, right?
You can end up reselling that on eBay
as used or sending that back into Amazon as used.
Yeah.
So there's multiple ways there
that it just won't account for.
Now that we got into those
and also, I wanna show you my waste profitable skews
and we're gonna show you,
so this thrust master wheel right here,
that is not accurate
because we had to do a removal order on that.
So, this we did not lose $4,000 on that, is wrong
but I will say the Redbarn dog slices,
it looks like we lost about 2K on.
So, that was our least profitable item.
And we did not look at the Keepa,
which Keepa is this tool that measures sales consistency.
It did not have a good enough sales consistency
which is why we lost money on that skew.
Yeah. So that was our biggest loss.
And I'm looking at our other biggest loss here,
the NBA 2K21, and that was the same thing.
So, make sure that you're looking
at the sales consistency, also asking your suppliers
how much quantity do they have.
That's a very important question
because it can help you gauge the market
a little bit better,
and the more questions you can ask
and the better picture you can get of the market,
the more better off you're going to be
and less likely something like this is going to happen.
And lastly, I did wanna say that we did have
about $150,000 of inventory near the end of the year.
That's still selling.
So you saw our profits, but we also still have $150,000
of inventory as well at the end of the year
not counting what we're already purchasing.
Now, my goal for 2021 is this,
is first off, I think it's better
more than ever to start an Amazon business.
When people are talking about new seller
signing up every single day
and all these other things
that come with, it's saturated.
It's just not true.
I wanna stress that.
I think there are so many opportunities
if you are going about it,
creatively and asking yourself
and from a problem solving perspective.
And my goal for 2021 is this is,
we are setting certain metrics.
So before it was all revenue based,
it was all revenue metrics.
But this year I wanna spend $200,000 a month.
That's $50,000 a week.
And I want, after all fixed and variable costs,
30% ROI on that 200 K spent
that comes out to be 30 K profit
for myself and my business partner.
So 60 K total, 30 K profit for me and him
just co-generating from this Amazon business.
And ideally, that's kind of where
I wanna see things and I want to work less.
So, if we can make do those numbers,
if we do, we spend 200 K a month
that may come out to be anywhere
from depending on the margins,
300 to $400,000 of maybe $500,000 in revenue.
So, we're looking at a 3.5 to $5.5 million store.
And, we may not be an eight figure seller,
which is something I think I was kind of attached to
earlier on even so much last year.
I just really wanted to be an eight figure Amazon seller.
But if I can work two hours a day
and my business partner can work two hours a day
and we can generate that kind
of profit and then that's what we're going to do.
And that's the plan.
And then we can get into other business ventures.
Now, the last thing I wanna say is,
is this is more so than ever I'm preaching.
This is just having a deep playbook.
So this is our last strategy,
is just having a deep playbook
which we currently have.
So many times in our past
and I've seen other sellers like this too,
they're too reliant on one or two suppliers
just like an NBA team, right?
Imagine if LeBron James
didn't have any surrounding players on his NBA team,
and if LeBron James goes down,
that entire NBA squad or team
is done for, right?
Now, if you build up depth
and you build up a bench
and you build up some key surrounding players,
it's not obviously not good
if your main supplier goes down
but you're not a fish out of the water, right?
You can still operate,
you can still function and it's just diversifying yourself.
And so that's just something we are,
we've been doing and I just want to continue to do
but that's the strategy for 2021.
In my next video, I'm gonna talk
about our first week back in business.
January 4th, everything opened up.
I'm gonna go over some orders that we placed
and some ROIs on those orders and go from there.
And before we close out, I want to announce
that I will be launching a free mini course
that is available on my website.
All you have to do is go to my website,
go to the free mini course section, download it
and you can get about three videos
close to about an hour's worth of information
that covers everything
from what you need all the way to selling your first item.
So, that's available now,
check it out on my website.
Thanks guys, have a good one.