2016 Income Report: First Quarter

24

pointer-1167554

Well, it has been a long time away from the blog!  I’ve not made time to create posts in the last several months for both personal and business reasons.  The good news is sales have been largely up from last year and new projects have been keeping me quite busy! Since I’ve fallen behind, I’ve decided to create a “super income report” to show my income breakdown for the first quarter (Jan, Feb March) rather than report a month at a time. I will likely continue this way going forward.

INCOME SOURCES:

My current sources of income are:

-2 Amazon.com seller accounts

-1 Amazon.ca seller account

-1 Amazon.co.uk seller account

-2 eBay seller accounts

-2 websites

-Kindle income (from my kindle book.)

affiliate accounts (including Amazon associates, clickbank and more- see the full report for details)

THINGS HAPPENING IN THE FIRST QUARTER:

While January was way down from December, sales have been higher than expected overall in the first quarter!  Last year, I focused primarily on private label products and devoted 90% of my time and energy to it.  While there is a tremendous benefit to creating and selling private label products, I’ve also found it can be incredibly unstable.  Sales are based primarily on rankings within Amazon which can fluctuate wildly!  It is absolutely imperative to have multiple products which is why I’ve recommend my six step six figure system from the start!

Thankfully, introducing nine new products last year really saved the business from falling apart for me (which could have easily happened since I largely let the arbitrage and wholesale portions of my business slide) Focusing on only private label is not a terrible strategy per se, but if you plan to do this, you had better plan to set aside some serious cash and build out your brands with several products as soon as possible to spread your income sources (and keep in mind this usually means buying at least 1000 of each item at a time while also setting aside funds to restock!… it can get very costly! This is another reason to go through the six steps- it will take a lot less of an investment to meet the same goals).  If you don’t, your single product can easily be dropped from the rankings, run out of stock, or even be de-listed and your income could disappear overnight.  Personally, I plan to pick up more on the arbitrage and wholesale side of things this year, but my hope is to have this 100% outsourced by the end of the year so I can continue to focus my own time and energy on private labeling.

INCOME BREAKDOWN:

Let’s take a look at the income from the first quarter (3 month’s worth):

Amazon Account 1: $128,377.87

Amazon account 1

Amazon Account 2: $35,666.18

Amazon account 2

Amazon.ca: $3,607.77 (conversion to USD)

Amazon.ca

Amazon.co.uk Account: $6,399.73 (conversion to USD)

Amazon.co.uk

eBay Account 1: $1079.75

eBay account 1ebay account 1

eBay account 1

eBay Account 2: $25.54

ebay account 2

eBay account 2

Website 1:$1,632.67

website 1

Website 2: $58.96

website 2

Total Income from physical products:

$176,848.47

35% (approximate profit percentage) = $61,896.96 PROFIT

——————————————————————————-

NON-PHYSICAL PRODUCT INCOME:

Amazon Associates: $74.36

amazon associates

Nanacast: $772.35

(includes: Proven Amazon CourseProven Product Partnering,

Sourcer’s Apprentice BookProven Wholesale Sourcing,

Proven Private Label CourseImport Direct From ChinaList Building Class,

Proven Performance Inventory)

nanacast

JVZoo:  (Amasuite) $25.50

jvzoo

Kindle Book: (Six Step Six Figure System) $171.19

Kindle

Total costless income: $1,043.40

GRAND TOTAL: $62,940.36

CONCLUSION:

I must say I’m quite pleased how things have turned out so far in 2016. If I were able to maintain this quarterly income, I would end up with over $250,000 by the end of the year!  In reality, the 2nd and 3rd quarters are historically lower than the first and the 4th quarter is typically higher, so while it looks like another 6 figure year, we will have to see exactly how this plays out!

I hope you enjoyed this income report.  If you’re just getting started making money online, please feel free to download my free ebook below!  Thanks again for your continued support!

24 thoughts on “2016 Income Report: First Quarter

  1. Daniel,

    I hope 2017 is less challenging and more prosperous for you than 2016.

    Thank you for being so honest about yourself and the reality of selling on Amazon. You stand apart from the B. S. found elsewhere.

    Best wishes.

    Liz

    1. Thanks for checking in Brent! A LOT has been going on in my life personally and I’ve fallen way behind on the public recording and broadcasting of my business (though I’m still selling and doing fairly well!) I plan to write a post eventually explaining all of this!

  2. That was a very interesting read, thank you. My brother sells on Amazon and he’s doing very well this year. He’s been doing this for 5-6 years now and the beginning was certainly challenging. I’m an Amazon affiliate (among other revenue sources). Selling actual goods just isn’t my thing ;)

  3. Daniel,
    I’ve been selling on Amazon FBA for a year and a half now. I work full-time and have a weekend part-time job so I don’t have the time to devote to the business that I would like.

    I haven’t made more than $ 2000 per year. My biggest problem is finding products that have a large enough margin to make a profit. I’ve mostly purchased lots from 888Lots.com but the margins are terrible.

    What advice can you give me that would help me move to the next level. I would like to get to a point where I can make about $ 1000 profit per month as I don’t plan to quit my full-time job (just the weekend job).

    I just don’t know what to source to get me there.
    I’ve looked into wholesale. Done some online/retail arbitrage. Read about private label.

    I’ve read books, articles , watched videos on FBA etc… but I’m frustrated because I just don’t know how to put this knowledge into actions that will provide me with a good monthly part-time income. I don’t want to give up. Any help would be appreciated.

    Thanks.

    1. Hi Bob,
      sorry to hear about your discouraging journey! There is definitely money to be made, but you’ll need to put in significant time (at least at the beginning) which will be difficult for you with everything you have going on. Your time will best be spent on one (or all) of the following:
      Arbitrage sourcing
      researching wholesale suppliers and their products
      researching private label opportunities, finding suppliers and promoting your products

      The sourcing/selling methods above increase in time spent and investment made incrementally, but also increase in the amount of profit potential. Arbitrage is the easiest and lowest investment (you can literally go online or to a store right now and find some that you can turn around and make profit on tomorrow), wholesale requires more effort on the front end and a bit more investment to buy in bulk, but once you have a couple good suppliers and some good products, all you need to do is list them one time and let them sell again and again. Private labeling is takes the most effort and cost, but also has the most profit potential. I prefer a combination of all of these.

      It sounds like you’ve already made some progress with arbitrage, though not as much profit as you would like (and arbitrage is VERY time consuming!) My advice would be to focus on wholesale right now- and find products on Amazon that have SOME demand, but are not best sellers or items that you would find commonly at places like Walmart. This is where I’ve had my best luck. Even better (if you’re willing to do a bit of extra work) would be to find an item that is NOT yet on Amazon but has a following (these can be found places like niche forums, trendhunter, kickstarter, shark tank, google trends and more) and create a new listing on Amazon. This will put you in a place to be the exclusive seller of an item (at least until other sellers find out about it.) Another strategy is to get an exclusive deal with a supplier so other sellers cannot sell that item on Amazon.

      I hope these ideas are enough to get you started!

  4. Hi Daniel,

    Just curious what your thoughts are on Amazon’s Vendor program. We just received an invite from Amazon to sell our products directly to Amazon as a wholesaler. Do you know what the pros and cons to this would be? Thanks!

    1. Hi Brent,
      Great question! I’ve not personally utilized this service, though I have received invites as well. I’ve talked with others who have. The biggest cons are:
      1. Your profit margin will suffer since you’re offering Amazon “wholesale prices” (and they will aggressively get you as low as they can
      2. You lose some control over your inventory (though not much if you’re doing FBA anyway)
      3. You will need to sign a contract that specifies how things are handled including being willing and able to send big amounts of inventory to Amazon when needed (something to keep in mind if you’re ordering from overseas with long lead times.)

      The Pros:
      1. Customers trust Amazon more than anyone. Seeing Amazon selling your product directly will help improve sales volume
      2. Amazon promotes their own products better than merchant offers on their site.

      From what I’ve heard, your sales will skyrocket if you do this, so just make sure the numbers make sense (offering a “wholesale price” to Amazon)

      Hope this helps!

  5. If I’m bundling two products that can be sold in two different categories, how would I choose which category to sell it under? Should I go with the one with less competition?

    Both products are ranked top 5 in their category

    1. Great question Zacharie!
      Without knowing the product, it’s hard to say for sure. If bundling the product lends the “new product” (2 items bundled) to an obvious category, go with that one. Otherwise, if you could reasonably sell it in 2 different categories, I would go with the one with less competition. Hope this helps!

  6. Hi Daniel,

    Congrats on the good start to 2016! We are thinking about expanding into the UK market and was wondering your thoughts if you think it is worth pursuing based on your experience with it so far?

    We’re unsure how to estimate how our products will sell there relative to how they are selling in the US.

    Thanks,
    Brent

    1. Hi Brent! It’s hard to know for sure about any product until you try it out. You can judge a bit from competition, current pricing, keyword research (on Amazon.co.uk) but you won’t know 100% until you put the product up. I’m selling in the U.K since I went through all the work of setting up my business presence there (my business is still U.S. based, but I had to go through a lot in the UK due to their tax laws etc) but it’s very little revenue comparatively speaking (then again, I am only selling a couple of products there). However, it’s basically “auto pilot income” meaning I do almost nothing with the account except check it once a week or so (sometimes less.) I’m sure my income would go up if I put more effort into it, but I’m focused on other things. At the end of the day, I’m making a little extra cash for doing almost nothing (setting it all up and making sure stock is kept up on) so I’d say it’s definitely worth pursuing- particularly if you have time to invest into it!

  7. When you started your Amazon biz, at what income level did you quit your pizza delivery job and focus solely on amazon and ebay?

    1. Hi Andy,
      My original plan was to simply replace my income. Then the business really took off a little before I was planning to quit my job and I ended up bringing in far more than expected. If I had to do it again, I would not quit until I was making at least 3 times what I thought I needed. This allows 1/3 to be put back into products, 1/3 to be saved and 1/3 to live on. Also this compensates for fluctuation in income. I didn’t realize in the beginning how much this income can fluctuate! I was naive and believed once I was making $X per month, I was set, but it simply is not this way. My advice if you are at the point or get to the point of making 3X what you need is to save as much as possible month after month. You never know when income will be down and you’ll need to draw from that. Hope this helps!

    1. Hi Will,
      Both have private label products in them. The second was opened as an “experimental account” so I wasn’t locked into one brand and product line

Leave a Reply to Will Cancel reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>