This post describes my overall strategy to get going with Amazon FBA in terms of financial goals and scheduling my time. I believe that coming up with a plan that is realistic and a set of tasks will increase my chances of being successful with FBA.
Monthly Financial Goals:
My long-term goal is to make enough with FBA so that I can quit my current full-time job and work from home. But, that is a big goal that’s not going to happen today, tomorrow or next month. I will start with small goals to shoot for each month. I want to make enough to cover my $39.95 monthly Professional Plan fee and to pay for new inventory, packaging/shipping supplies and training materials. At this time, all sales proceeds will be reinvested into my FBA business.
- May – June 2014: Make $75.00 in profits.
- July 2014: Make $100.00 in profits.
- August 2014: Make $150.00 in profits.
- September 2014 and beyond: Will depend on how well I did in May, June, July and August.
I combined May and June into one period because I’m not going to have very many products to sell on Amazon in the month of May. I shipped my first box of 6 items on May 5, 2014, and as of today, May 9, 2014, the box has not made it to the Chattanooga, TN warehouse yet. It probably won’t get there until early next week. So, at this time, there isn’t anything on Amazon ready to be sold. Future shipments won’t arrive to Amazon until later in May or early June.
A year ago when I started doing websites and writing online, I didn’t have any action plan or budget. I wasted money buying WP Themes and tools that I didn’t need. I jumped around from project to project and always felt overwhelmed. This time around with FBA, I want to have an initial budget and a focused plan. Without it, I can easily see myself either going weeks without doing anything or by walking into a store and impulsively buying $200.00 worth of inventory that won’t sell. But one important lesson that I learned with my websites is that you won’t get anywhere if you don’t start.
Here is my current plan:
- Buy initial supplies so that I can label, package and ship inventory. Done – I purchased the basic supplies to get started.
- Education – read blog posts, watch YouTube videos and connect with other people doing FBA.
- Find inventory to sell – this will be a combination of selling old stuff from home and purchasing new inventory. New inventory purchases will be funded with $100.00 per month of my personal money and with Amazon sales money. The personal money amount will be reevaluated monthly with the goal of eventually only using Amazon sales money for new inventory purchases.
- Use the Profit Bandit App to check for rankings and potential profits.
Keep in mind that I do work 52 hours a week at my regular job – therefore, I don’t have a lot of free time which means it’s important that I have a schedule to make sure everything gets done:
- Daily: Education as mentioned above, list, label and prep.
- Weekly: Shop 1 to 3 times a week for new inventory. There are 2 thrift stores by my work location and one by my home. This makes it convenient to shop after work. On the weekend, I can travel the 10 miles to the sales tax free state and hit Target, Toys R Us and other larger retail stores.
- Sundays: Prepare shipping box for everything I found during the week.
- Mondays: Drop off boxes to UPS on the way to work – luckily, there is a UPS store just minutes from my house.
As I become more experienced, the above will most likely change.
For those of you also Amazon FBA, good luck and if you have a routine that works for you, please let me know by leaving a comment below or connecting with me on Social Media. You can find me on Twitter, Facebook and Google+.
Photo Credit: © Marek – Fotolia.com