December 2015 Income Report

21

 

3d-business-graph-2-1237827First, 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.

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)

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:

INCOME BREAKDOWN:

Amazon Account 1: $133,869.72

amazon account 1

Amazon Account 2: $10,654.20

amazon account 2

Amazon.ca: 2679.32 (conversion to USD)

amazon canada account

Amazon.co.uk: 9131.12 (conversion to USD)

Amazon UK account

eBay Account 1: $951.86

eBay account 1

eBay Account 2: $23.77

ebay account 2

Website 1: $6,010.34

Website 1

Website 2: $30.97

website 2

Total Physical Product Sales: $163,351.30

35% (approximate profit margin)= $57,172.95

——————————————————————————–

Affiliate Earnings:

Amazon Associates: $128.00

amazon associates

Nanacast: $381.14

(includes: Proven Amazon CourseProven Product Partnering,

Sourcer’s Apprentice BookProven Wholesale Sourcing,

Proven Private Label CourseImport Direct From ChinaList Building Class,

Proven Performance Inventory

JVzoo (Amasuite) $32.00

nanacast

JV Zoo

Clickbank: (AffiloblueprintLongtailpro, etc)

$0.00

Lisa Suttora’s Wholesale Course: $216.70

Lisa Suttora

Kindle Book (Six Step Six Figure System) $78.63

Kindle

Total affiliate income (and other “costless” income):

$836.47

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

FINAL THOUGHTS:

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!

If you’re just getting started making money online, please enter your name and email address below and download my free ebook to get you started!

Thanks to everyone for your continued support!  It means a lot!  Happy 2016!

21 thoughts on “December 2015 Income Report

  1. Are you still updating your website? The last entry was for December 2015. I just found i and find it a valuable resource. Thx

    1. Hi Dave,
      Thanks for the kind words! You are right. It’s been a long time since I’ve updated the site. There have been several reasons for this, but there is more coming… fairly soon. Please keep checking back

  2. Hi Daniel,

    I just read your book – thanks for sharing your experiences and the valuable information! It really helps a lot! I have one thing I am worried about: How can I deal with the topic of product design? Did you have any bad experience when you ordered things from Alibaba concerning copyright infringements? I don’t intend to order anything “fake” from another brand – I’m just thinking that someone must have designed the product in the first place and I might unintentionally steal a design. Do you have experience with that and know how I can design my own products?

    Thank you!!

    Jennifer

    1. Hi Jennifer,
      Glad you enjoyed the book! Your concern is understandable, but in most cases, it is unnecessary.

      Most manufacturers who offer private labeling design their own products and own the rights to that design. If they are willing to private label, they are essentially giving you the rights to sell their design as your own. In some cases, manufacturers will design a product that is too close to another patented design of another brand. This has only happened with one of my suppliers once. When it did happen, they received a cease and desist letter, they changed one thing about the product design and were not longer in violation of patent infringement.

      It is important to do your research. Most items that are able to be private labeled are simple and will not be at risk for infringing on anybody’s rights, but if you find a product that seems too similar to a patented product, do a lot of research and ask the supplier a lot of questions about their design etc. In 99% of cases, you won’t need to worry about this at all, but it’s always best to be cautious just in case.

      Hope this helps!

  3. Hi Daniel, you are a real inspiration. Thank you for sharing your experiences. I am just starting out on my Amazon adventure. I have got a product and a private label, all done for me at the same source. The problem I have had is barcodes. No one tells you where to buy. I eventually bought on eBay, but instead of sending me white labels with black stripes and a number, which I expected. I received a spreadsheet with a mass of numbers. Which left me not knowing what to do next.
    My other question to you is Where do I find promo codes on Amazon?
    Best wishes Daniel and please keep up the good work.

    1. Hi Diane,
      Thanks for the kind words! So glad the blog is helpful to you!

      These are great questions. First, you received UPCs (or possibly EANs) now you just need to convert them into barcodes! You can do this for free at THIS site
      Just select “UPC-A” and copy in your UPC number that you received from eBay and you’ll have a barcode image to copy and put on your product!
      I have a big list of sources to buy UPCs in my book “six step six figure system” but don’t feel obligated to buy the book. If you just email me at daniel(at)alittlesliceofthepie(dot)com (replacing the “at” with @ and “dot” with “.”) I will be happy to email you a list of UPC sources including the one I use!

      For promo codes, you will need a professional selling account. ($39.99 a month) If you have one, you would go into your account and go to: advertising/promotions.

      If you need help setting up a promo code, let me know. There are a couple of things to watch out for (be sure to click “one redemption per customer” and disable the custom messaging. Also, one time use codes are helpful. I am happy to explain this more over email if you get stuck. Thanks for reaching out!

  4. Hello! This is the first time i’ve seen this website and i am amazed at your success!! is most of this method coming from RA? or Private Label?

    1. HI Saleem,
      Thank you for the kind words! I’ve been focusing pretty heavily on private label, so my income dipped in the last year. When I was doing RA pretty hard, it made up about 35% of my overall income. Keep watching the site. I’ve not posted much recently, but I have plans for an overhaul :)

  5. I will take a fluke like that any day! Looking forward to your January report to see what your new trendline looks like.

    BTW, I’ve added you to my Complete List of Bloggers Who Share Income Reports over on my site.

    Thanks for all the transparency you provide. It really helps those of us who are getting started and trying to learn from those who have gone before us. Keep up the great work!

  6. Hey Daniel,
    congrats on your sales! That is awesome!! And encouraging :)
    I’m curious, what is your strategy or benefit of having two amazon accounts and ebay accounts? I’m a newbe, and gathering information!
    Thank you!

    1. Hi Cindee,
      Thanks for the kind words! The short answer is that I use 2 different accounts to cover 2 different niches. There is a longer story. It just kind of went this way as I was trying to get away from my competitors following my every move in the early days. I opened up a second account on both sites to experiment without the same people jumping on every idea I had. Mostly multiple accounts is not necessary though. It’s more important on eBay than it is on Amazon. Hope this helps!

  7. Hey Daniel, you’ve been a big inspiration for me and countless others. You’ve totally hit a home-run with the two other products and I think that success should be attributed to the effort you’ve put into taking the decision of creating the products and not over-analyzing, or dilly-dallying like I would. I have a question if you don’t mind: When you say “you began your promotion strategies” – can you tell me what those promotion strategies are? I’ve been struggling with finding the right answer to the question for sometime and it would mean a lot if you could put me in the right part. Thanks for all your help.

    1. Thanks for the encouragement! My promo strategy is laid out in my book “Six Step Six Figure System” but don’t feel like you need to buy the book. Here are the basics:

      1. Create a great listing (lots of high quality images, good sales copy in the description, good keywords in the title etc)
      2. When inventory is received, get reviews. This is done by giving away products to friends and family or finding reviewers online who will accept a free product in exchange for an honest review. It is ideal to have them “buy” the product with a coupon code because this generates “sales” which will give you a boost in rankings
      3. After you have at least 10 reviews (I used to say 3, but now that it’s more competitive, I go for 10) then I start a paid ad campaign to create more sales.
      More sales= better rankings = more sales.

      This is the basic strategy. Hope this helps!

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