The time has finally come for me to reveal how well my new Amazon FBA business is going.
I've shared a bit about how I got started selling physical products on Amazon; including the fact that I made about $4,400 in my first 40 days. I've also been busy interviewing others for the NIche Pursuits podcast and just generally digging into the Amazon FBA business because I saw so much potential.
The two most recent podcast interviews I did with Amazon/Importing from China experts was:
Yes, I revealed recently in a podcast that I was doing about $2,500 a week in sales; however, things have only gotten BETTER since then. To say the least, I'm very happy about what I've been able to accomplish with this business already; but even more excited about the potential of this Amazon FBA business because I'm just barely getting started.
Today, I want to discuss the revenue of my Amazon business over the past 30 days. In addition, I want to touch on my “authority” site project and why shifting my focus away from it was clearly a good move.
Timeline and Income Numbers
I wanted to remind everyone of how short I have actually been involved in this business.
- My first product went live on Amazon on March 28th, 2015 (about 4.5 months ago)
- April 29th – In 30 days, I had sold $4,400 worth of the product!
- May 7th – I ran out of inventory
- May 7th to July 6th – I had basically no inventory and sold nothing.
- July 6th – Today – Crushing it! (See income screenshots below).
So, technically I started selling physical products on Amazon about 4.5 months ago; however, I was out of inventory for about 2 months. So, I've only really been selling on Amazon for about 2.5 months total (when I had stock).
Despite the short amount of time I've been tinkering with the Amazon FBA business; I've clearly got a winner on my hands.
Check out these sales stats for the past 30 days:
I am SO happy with the sales of $17,700 in just 30 days!
And in full disclosure right around 45% of that is net profit or about $8,000 for the past month. I've basically got a six figure net profit business if things continue like this for the next 12 months.
However, as I'll discuss below, I believe that doing MUCH more than $100k in net profit is possible…there is SO much room to scale this business.
I'm just getting started.
Plans for Future Products
The majority of the sales from the screenshot above are from 1 product.
I honestly think I can double or triple the sales of this 1 product.
- I haven't done ANY Amazon (or other) PPC.
- I'm not selling on Amazon internationally (UK, Australia, etc).
- I'm not selling on eBay or other ecommerce marketplaces.
- I'm not selling on my own website (which is growing). My interview with Steve Chou gives a good road map of how to make this happen.
- I'm not in retail (why not?).
I have a winning product on my hands; but the main problem is keeping it in stock. That's a good problem to have that I'm figuring out right now.
In addition, I actually have 4 additional products that just recently went live on Amazon. My early diagnosis of the 4 additional products is that I have 2 duds; but I also have 2 winners.
The 2 new winners could be as big as my first product. I'll know better in about 30 days.
The 2 additional winning products aren't selling like crazy, but they ARE selling 1 to 4 units a day without ANY marketing from me. No promos/giveaways and no PPC. They've only been live for about a week and they are selling in a similar fashion to what my first product did before I did any promos/giveaways.
I'm SUPER optimistic about the 2 additional products. I will be starting promos/giveaways this week to get some reviews. I expect this will jumpstart the sales even more.
The 2 “dud” products are going to take more work. I've started a PPC campaign on one of those products, and it has generated a few sales. So, I'm hopeful here. I may give away some more units to drive more reviews. I haven't given up on this product yet, but if it doesn't start selling well on its own in the next 30 days, I likely won't re-order inventory for it.
The 2nd “dud” is still too early to tell. I haven't done any promotions for it, so it's fate hasn't quite been determined yet. However, it hasn't made a single sale in the past week like my other 2 new “winning” products have without promotions or paid advertising. Again, it could still do very well in the future…but it's “iffy” at this point.
Some Quick Math
Sometimes I like to dream a little with the potential that a business venture might have. If I look at the 3 “winning” products that I currently have, I think the potential revenue is quite good by the end of the year.
If I double the sales of Product 1 (and I believe tripling is not out of the question), that's about $35k a month.
If I ramp up product 2 and 3 to $15k per month each (I think it's very realistic), that's $30k per month.
I think it's totally feasible that by the end of December this year, my Amazon FBA business could be doing $65k+/month.
Again, this is me dreaming a little and avoiding any unforeseen snags along the way. But the potential is very much there. The MARKET of ready buyers is definitely there; it just depends on if I can deliver.
Now we could also think of nightmares. My FBA business could go to 0. But that's not any fun to think like that…so stop it!
A Good Move: Shifting Focus Away from the Authority Site Project
Perrin and I spent nearly a year trying to build up an authority site and publishing Kindle books. In one month, the income was up near $3,000 (when one of our books hit some best seller lists); however, most months hovered around $1,000 per month.
Don't get me wrong, $1,000 per month is nice to have. But the growth was too slow and I saw more potential to quickly grow a business with Amazon FBA.
So, back in April, we decided to no longer focus on building up our authority site.
At the time, we got a little bit of push back from some readers and of course we even wondered ourselves if that was a good move. We had basically gone from focusing on our established authority site to an unproven Amazon FBA business.
However, I knew deep down that the upside potential of our authority site after a couple years of effort was only around $10,000 per month. On the other hand, I could easily see that the potential of an FBA business could be six figures per MONTH with less than 2 years of effort.
As a result, I made the call to switch our efforts, and I'm SO happy that I did. Trying to generate revenue with our Authority site was like pulling teeth; whereas generating revenue with our brand new FBA business is comparatively a piece of cake.
I've already made 3 times the revenue with Amazon FBA in 2.5 months of selling, than I made in about a year from our Authority site. I think it was a really good decision to turn away from the struggle of the authority site, to the Amazon business.
I think this is a lesson that anyone should learn. If you have been struggling to build a business for a year and you are still not seeing good returns, perhaps it's time to try something new.
I see too many people still struggling for years to make niche sites “work”, or some other business. If you have been struggling for 6 months to a year on some online business and still not seeing any return…it's could be time to try something else (obviously every situation is different).
Overall, I wanted to give a quick update on how my FBA business is going. I'm excited for where I can take this business! I see so much potential; and honestly it feels nice to see people write genuine reviews and say how much they like your product on Amazon.
I'll do my best to keep everyone posted on how it goes. I don't expect to be doing monthly income reports, because I don't want to get stuck in the trap (it never ends); but I will share posts like this one from time to time that share how this FBA business is doing.
As always, I'm sure there will be questions or comments that you will have. I look forward to the discussion with you below. Thanks!
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