First, please allow me to apologize for the delayed report. December was insane but I’m now making time to get this report up! December was a fantastic month! Surprisingly fantastic actually! Spoiler alert: I did well over $100,000 in sales in the month of December! December is always up from other months, but in this case, the sales shot through the roof! A few key products made a huge impact! Let’s look at the numbers and talk about how and why this happened.
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
-Kindle income (from my kindle book.)
affiliate accounts (including Amazon associates, clickbank and more- see the full report for details)
WHAT MADE DECEMBER UNLIKE OTHER YEARS:
As I said at the beginning, this December was surprising. This year has been a bad year overall financially. Things on Amazon are far more competitive than they used to be and it now takes a lot more to rank products, sell at a profit and maintain sales volume. I’m still profitable, but not nearly at the level of previous years!
Toward the beginning of the year, I had a goal of introducing 12 new private label product (1 for each month). In reality, I made it to 9. Unfortunately, some of these products stayed in the “development stage” until close to the end of the year (lots of back and forth with suppliers, obtaining samples, making changes etc.) By the time my product was actually about to hit the warehouse, there were numerous other similar products- most of them going for less than what I planned to sell mine at! Essentially I had 4 products all about to hit Amazon in November. When I looked at the current competition, I was discouraged to see that the average selling price left me very little room for profit. What happened next surprised me though. When my products hit the warehouse and I began my promotion strategy, sales started increasing… rapidly! They started increasing to the point where my products were in danger of selling out long before Christmas hit (a big problem!) I began increasing my price every day. My most popular item was originally at $35. By Christmas time, it was at $169!… and still selling! In fact, I’m still selling at this price today (though I will bring it back down once the new stock hits) This phenomenon happened with 2 of my items which contributed to the high sales number in December! I was very pleased with this!
The interesting thing is, our of my 4 products, 2 sold very well (as mentioned above) but the other 2 struggled (and are still struggling.) Even more interesting is that this is opposite of what I predicted. I was prepared to take a big hit on the 2 products that are now doing incredibly well. The moral of the story is, you can do all the research you want and make all kinds of predictions (and it’s very very important to do so) but in the end, you just don’t know until you get your product up on Amazon!
While my first account was way up (thanks to those new products) my second account was way down! Let’s take a look:
Amazon Account 1: $133,869.72
Amazon Account 2: $10,654.20
Amazon.ca: 2679.32 (conversion to USD)
Amazon.co.uk: 9131.12 (conversion to USD)
eBay Account 1: $951.86
eBay Account 2: $23.77
Website 1: $6,010.34
Website 2: $30.97
Total Physical Product Sales: $163,351.30
35% (approximate profit margin)= $57,172.95
Amazon Associates: $128.00
JVzoo (Amasuite) $32.00
Lisa Suttora’s Wholesale Course: $216.70
Kindle Book (Six Step Six Figure System) $78.63
Total affiliate income (and other “costless” income):
GRAND TOTAL ESTIMATED PROFIT FOR THE MONTH: $58,009.42
LAST MONTH’S TOTAL ESTIMATED PROFIT: $16,985.06
LAST YEAR’S TOTAL ESTIMATED PROFIT: $45,134.50
FROM LAST MONTH: UP $41,024.36
FROM LAST YEAR: UP $12,874.92
Clearly I did something right in December (never mind the fact that it was mostly a fluke!) This is a lesson to me that sourcing should be my #1 priority. Not every product is going to work and this is discouraging, but when you hit a winner, it can make a huge impact on your business!
My plan going to forward is to capitalize on my success by introducing more products related to the products that are already doing well!
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Thanks to everyone for your continued support! It means a lot! Happy 2016!