hey guys thanks for joining me for a new
video today i want to do my amazon fba
2020 recap i'm going to talk about
all of the high level numbers as you can
see here right in the thumbnail
i got my sales numbers my units sold
costs and
ultimately my profit so if you want to
hear me break down
how the year went talk about what went
right what went wrong
and talk about my plan for 2021 then
stay tuned
let's get started
real quick before i get into the video
just wanted to remind you i run a weekly
print on demand giveaway this week
sponsored by
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automation automate pod
print on demand design automation and
all american graphics if you would like
to enter the free giveaway
you can use the link in the description
right next to that link i've got my
amazon fba
facebook group if you'd like to join i'd
love to have you and i've got a free
seven-day fba mini course that helps you
source your first product it also gives
you like the criteria to look for
and various other useful tidbits so i
gotta start by talking about this hand
sanitizer my big plan for 2020
was to focus almost exclusively on
launching this brand of hand sanitizer
now it's not my brand but i
know the manufacturer the manufacturer
actually owns the brand
and it's made in the us and obviously
like this was a much needed
uh product in 2020 but amazon made it
incredibly hard
to get these listed on amazon so
ultimately long story short
i'm actually retelling the story because
i didn't want this video to go on
forever so i had to like edit it down
from me telling it earlier but i was
unable to get this listed on amazon
because you
really needed to know somebody that
worked at amazon they could pull strings
for you behind the scenes
to get it up on the platform but this
had like 50 million dollar
upside in 2020. i mean i was literally
like looking
and talking to you know because i had a
relationship with the brand owner i was
like hey like you know
these numbers are crazy you know i was
like what's your
manufacturing capacity and they were
like yeah it's really high you know they
do everything in the u.s
and um again because the manufacturer
owns the brand they can like give
priority to manufacturing their own
products if the demand is high enough
and it i'm like looking at jungle scout
like man the demand is absolutely crazy
as you guys would imagine in 2020
where everybody's buying stuff online
especially things like hand sanitizer so
unfortunately i missed out on that
opportunity because they had to
outsource it to a company that
had a connection at amazon that could
pull strings to get them in the door
and then from there they basically took
the whole project um so you know good
and bad
freed up more my time but at the same
time too like if i had any sort of
profit sharing in this it would have
been um
i would have been rewarded handsomely
but you know things are you know what
they are now the big numbers that you
guys want to see so not as big as i was
hoping um because i didn't get the
50 million dollars in hand sanitizer
sales but you know whatever there's
always next year right
uh and hopefully not but we'll see
anyways my own personal account
i did 448 915
and 46 cents in sales 20
851 units sold in total the
costs were 365 147
and 91 cents and that leaves me a profit
of 83
767 55 cents and my
aggregate margin which is not how i'm a
fan of tracking things by the way
so i truly don't care when when that
margin says 18 percent
it's it's not something that matters
because it's averaging in everything
right but it's about 18
so here i have more of a breakdown if
you're wondering like what is rolled up
into these
numbers so with sales it does your
aggregate sales which i guess my
aggregate sales were 453
000 it deducts promo rebates and refunds
and adds in reimbursements and it comes
to 448 thousand
um so i guess my actual revenue or total
sales was 453
okay before you um do the math with the
reimbursements rebates and refunds
units sold uh so this is
the unit shipped plus promo rebates plus
pending units somehow one unit is still
lagging
from 2020 probably like on the last day
of the year because it's the 7th
of 2021 as of me recording this um so it
shouldn't be pending
or maybe it's a problem with the
customers like payment info all right
costs
uh you have the cost of goods which by
the way this software i'm using is
called fetcher it's like my favorite
software for selling on amazon it does
it does more than just my um profit and
loss statements but
it does some other stuff like helps me
project when i need to reorder inventory
um so i'm a big fan it's only like 19
bucks a month so
i don't even think my affiliate link
works anymore so it's just fetcher.com
f-e-t-c-h-e-r-dot
if you guys want to check it out um
costs
so my costs were 365 147
this takes into account the cost of
goods which you need to manually input
and what's cool about the way this
software works is like
you can like when i put in how much it
cost me for one unit
um because i sell multiple different
skus like different products
if the costs change over time which they
do tend to
sometimes for better sometimes for worse
uh
you can actually when you input the cost
into the software you can
you don't just have to update the cost
like you can go in and like add the
new cost and then set the date as of
that being the cost
and the software knows how to look at
the date and figure out which costs to
apply when it's doing your
calculations so it's really really
useful and you also
have to factor in your shipping cost per
unit and you can do the same thing where
it's as of a certain date
so it gives you the most accurate
numbers that you can get
so this is cost of goods it's order fees
this software integrates with amazon via
api so it can pull the order fees for
you
shipping costs again that's one you have
to manually input so when i input a new
product
into the software which by the way you
don't have to actually do like it
integrates via api so when it sees a new
product that it doesn't recognize like
it tells you it's like hey you need to
add the
you know expenses and the shipping costs
so and when it says shipping it's not
shipping to the customer it's shipping
from wherever like overseas
to the fba center
so cost of goods and shipping you
manually input order fees it pulls
automatically recurring fees it pulls
automatically
ppc it pulls automatically and i'll
break those down in a second i'll talk a
little bit more about them and i don't
want this video to go on too long so let
me let me speed up
all right profit 83 767
simple math i did 448 915 in sales and
it deducts the uh 365 0147
in costs to get that number uh margin 18
like we said all right so my total sales
this is a
breakdown like the software also lets
you fetcher also lets you export every
data point as a csv i import the csv to
google sheets
google sheets makes it easy to add these
graphs so
here's a breakdown i didn't show the
product name sorry but um you can see
there that my
best seller is literally just about 25
25.5
of my total sales pretty cool that's a
nice
um you know big big piece of the pie and
i am well diversified
um man i almost cursed i'm like man what
was the number of skus
like i counted the number of skus before
i started this video and now i'm
blanking on it but i guess if you count
the number of colors there
um i think it was like what 15 maybe one
two three or five six seven eight nine
ten eleven twelve three
something like 14 products with 14 fba
products with sales
this past year um granted like clearly
there's a discrepancy on some of them
like one says 0.1 so that might have
just been like i had one unit left of
some product that like i'm not selling
anymore
that might have been at the beginning of
the year because i'm not scared to cut
cut ties with products that aren't
working you know like if the product's
not working
see you later i don't need to invest in
it anymore and the one product that says
0.0
that actually i lost money on that
product um and i know what product that
was
um i've talked
i've said that story before without
saying the product essentially like i
ordered it
there was no problem with the shipping
and then all of a sudden
there was a problem with the shipping
like they said this wouldn't be an issue
and then they were like oh no
certain um aspect of the product
chemical related
they're like now you need to pay double
shipping and i was like no
so anyways that the entire time i sold
that product it was at a loss
so it's all good it happens sometimes
you know what i didn't do i didn't
reorder it
so it's like hey launch the product it
was a part of a bigger brand
too so it was like a brand recognition
thing brand expansion thing
um just not going to reorder it so all
right costs
um this is also from fetcher they give a
pie chart this does not factor in
uh profit so this is just my cost so you
can see cost of goods was 43
of the pie order fees 41 of the pie
that's just amazon collecting the check
shipping 11 recurring fees uh
2 and then pay-per-click 1 and i'm going
to elaborate on why pay-per-click was so
low
this year because i you guys already
know i'm not a big fan of advertising
when it comes to print on demand
i just don't think it's usually required
like there are times that i'm like yes
advertise but most of the time i'm not
thinking it's required again your time
is money right so like
are you gonna make more money spending
money to advertise sometimes or you're
gonna make more money taking that time
and making new products usually that
that's how that's how i lean anyways
um cost of goods so 157 000 24
that's how much money i had to send in
wire transfers
last year to buy the units that sold
so by the way like if you've never sent
a wire transfer like you guys
might know that i do have a full fba
course and like
i go very granular in detail so i have a
whole lecture dedicated for instance
just to
like your options of how to transfer
funds internationally and like
what to look for to be safe and all that
crap so just in case you're interested
inbound shipping uh so this is also
in addition to this uh inbound shipping
so when you go in
and you add your um products to fetcher
the software
you say this is how much it costs per
unit and this is how much it costs to
ship that
good from wherever it's manufactured to
the us
and that can vary um it tends not to
change too much at least in my personal
opinion but like
the rates will vary based on different
criteria
for instance the size of your order the
bigger you typically save more
even if it's just a little bit but like
i said it updates that over time when
you go and you add it
and doing the the math is pretty simple
it's like what what did you have to pay
divided by the number of units in the
shipment so i paid forty thousand
dollars
for forty one thousand basically for 40
998 for that
uh fees 160 010
i lumped together like all the amazon
fees basically and it just came to there
was like two or three of them that i
lumped in
um i talked about it earlier what was
rolled up into that
uh ppc 7 125
and this is spending money to make money
which
you know you shouldn't be you shouldn't
be afraid to do if it's a business
and also like the way ppc works on
amazon you know think about it like this
if you have a 30 profit margin in an
item
and you're spending 20 percent of the
sale price
on ppc then you're still netting 10 on a
sale you might not have made
and with amazon each sale you make
signals to the algorithm that your
product
should rank better or you know is
relevant to whatever search query they
typed before they clicked your listing
and
purchased so that's a good thing
and you know again it's also like
affecting your bottom line in that
you're making more sales
so ppc i'm a big fan of i mentioned this
again i don't know how long you guys
have been subscribed to the channel but
like if you're watching my content back
during the cerveza sickness craziness in
like march
or maybe it was april it might have been
april uh but i was like man like
the advertising requirements on amazon
shifted very quickly like in that you
could get visibility
for much less than i was paying so that
may be amazon like introducing
additional ad slots
into various locations but also i think
like a lot of people just disappeared
from the platform like sellers
disappeared maybe temporarily and then
they came back
for whatever reason but like i i killed
a lot of my ppc campaigns and then i
would like gradually restart them
but then i was like changing my um cpc
my cost per click bids
and just making them low and i'm like
hey like i'll start low and i'll rebuild
them higher because if i don't need to
be paying a lot why would i why would i
volunteer to
you know that's just driving the prices
up in this niche and you know i usually
like to say like make a joke about
lord jeff bezos like needing more money
however today it's warranted because
he's no longer the richest man well i
still believe that there are people
richer but either way
um he's no longer the richest man on
earth now elon musk has surpassed his
wealth
so maybe the ppc prices are about to
double
because jeff bezos is gonna be like
running that amazon vacuum cleaner of
dollars
and um you know amazon's not that
friendly to the sellers that's no secret
and maybe they're gonna find a way to
squeeze us even more
in 2021 so that he can retake the uh the
title from elon let's see what happens
also as somebody who um has made some
money investing in tesla this year
pretty well versed on what they've got
going on i wouldn't bank on
bezos overtaking elon unless like blue
origin goes public or something
otherwise
i think tesla i'm not saying tesla is
more valuable than amazon it's not um
you can look at the market caps but i'm
saying that like as a function of how
many shares they each own
um i'm i'm projecting elon to hold that
title
all right total expenses 365
148 that's basically just lumping
together all these other numbers i just
sent you
that weren't um that were i guess paid
out
via the you know everything we covered
basically and the net profit again when
you do the math you take the
total sales you subtract the expenses
you get the net profit of 83
767 dollars pretty consistent with what
i did year over year
granted i didn't launch any new products
my whole plan the reason i spent so long
talking about the hand sanitizer was
that that was my plan for 2020
and in not launching new products
because of that that was gonna take up a
lot of my time and effort but for good
reason the upside was massive
um you know it was a pretty steady year
year over year nothing unexpected
pretty much in line with what i did last
year i mean i can look over at my side
monitor real quick
and pull up what i did in 2019
for a comparison uh
yeah almost the same i mean 2019 it was
86
490 and 33 cents of profit so a little
bit down
um you know i don't know why i could i
could dig further into the numbers if i
really wanted to but i'm not really that
concerned
because as you guys know i'm a fan of
diversification of income streams
like could i scale my amazon business
much further
probably you know i'm the type of person
that thinks if i can make five dollars a
day well what's stopping me from making
10 if i can make 10 why not 20
40 80 et cetera um i for sure probably
could but i'd much rather be diversified
guys
uh then focus all in on one thing and
maybe that's my to my detriment
but anybody that's being honest about
what it's like to sell on amazon
where you don't own the full aspect of
your business it's your business and
amazon's business and it's really
amazon's business
and then kind of my business that's why
i don't think it's like completely
logical to go all into amazon
you know because it's truly amazon's
business before cheers
so i'm cool with like where things are
you know this year i spent a lot of time
on youtube doing daily videos for like
half the year
and whatnot did i say this year last
year i guess 2020. it doesn't feel like
it was that long ago
but all right so in 2021 i'm definitely
gonna be launching
at least a handful of new products you
know i like to stay fresh i like to be
participating in the excitement of the
product research
product validation product launch you
know well interviewing suppliers
ordering samples figuring out what's
good launching new products i like
being involved i like doing that stuff
so i'm definitely definitely going to be
launching some new products
this year will i stay away from the ppe
hand sanitizer niches
yes i'm willing to um definitely already
say that much because i'm not trying to
deal with amazon's uh
crazy restrictions and i mean warranted
like it made sense that they did what
they did because people were getting
away with murder
price gouging so i get it and also
selling fake stuff and then also selling
stuff that they were shipping like three
months later
it was a mess so i get i get it's hard
to police things at that massive scale
especially when their hand is forced and
they have to act very quickly but
2021 i'm gonna be you know back to the
drawing board
doing what i do you know hopefully
there's still some residual
um opportunity as a result from 2020
remaining for me to find some easy
products to launch in 2021
but also i did want to mention that
since i couldn't launch new products in
2021 i didn't just let my money
lie dormant in a bank account because
typically launching new products is one
way to
increase my wealth to put my money to
work
so i bought some other assets by the way
i bought
assets that appreciate in value it's
worth mentioning
that uh usd u.s dollars while you may
log into your bank account and see the
same amount of them
the us dollars being devalued at a
alarming rate and i'm not saying it's
gonna continue forever like i don't have
a crystal ball but
um you should purchase assets that
appreciate in value and if you think
you're
safely holding cash i've got news for
you that's not how it works
you can go to tradingview.com type in
dxy and see the us dollar weighted
against a basket of other currencies and
see that it's losing relative strength
you're losing
buying power which is buying power is a
concept that um is very important to
understand anyways
i've been buying things like bitcoin
i've been rewarded handsomely
for simply hedging my my head literally
hedging against
us dollar weakness i've been rewarded um
quite handsomely so anyways because
bitcoin's outperformed
on a relative basis a lot of other
assets so save that topic for a
different day um
just just mentioning that though all
right guys thanks for watching till the
end this is a quick reminder i do have a
full amazon fba course i spent
this is true i spent over a year writing
it so it's very thorough
and i'm currently working on
re-recording the core
modules for 2021 plus i'll probably do
that as i go through the actual phases
again to launch new products for myself
this year so if you're interested
there's a link in the description to the
course
you can also use the link at the top of
the description and take the four
question quiz that i built and i can try
to help you figure out if amazon fba is
right for you
so just want to make you aware that
those are there but thanks for watching
guys i appreciate you appreciate your
time if you want to do me a quick favor
and hit that like button
and if you're not subscribed you want to
do that that would also be awesome to
help the channel grow so i can hit 100k
subs in 2021 because why not let's get
to 100 000
but thanks guys i'll see you tomorrow
you