This is a short post to share my Profit and Loss statement with you for the months of April thru July 2014. I meant to show them to you sooner but didn’t because I didn’t have an easy way to display them. Up until recently, I was using Moneydance to track my income and expenses but since that program is more of a personal finance program, it didn’t have good reports to share. I didn’t want to take the extra time to recreate the reports in an easy to read format.
I did share my May 2014 Income Report and if you were to compare the May numbers in today’s post with my earlier post, you will see that they are slightly different. This is due to a few errors that I made when I did my earlier post.
In my last post, I mentioned that I signed up for GoDaddy Bookeeping. After spending a few days with it, I decided that it wasn’t for me. I then signed up for QuickBooks Online Simple Start and like it much better and will use QB for my bookkeeping from now on.
Before you see my numbers, please keep in mind that I am selling on Amazon FBA part-time and I have no prior experience selling online. I work 50 hours a week at my regular job so I am unable to spend hours a day sourcing for new products. I haven’t really counted the hours, but I estimate that I spend an average of two to five hours a week sourcing and another two to five hours on getting my products shipped out. If you are able to spend more time on FBA, you will probably have better results.
Now, lets get to the report:
Yes, I am at a loss. But, I do feel confident that my numbers will improve and here is why:
- Sales and Cost of Goods: I am getting a decent return on the items that I do sell. On average, I’m selling my products at 6.6 times the cost of what I paid for them. My biggest challenge is finding the time to source due to my full time job.
- Prepping and Shipping Supplies: When I started FBA, I didn’t have any supplies. So between May and June, I spent almost $285.00 in supplies. This included a DYMO printer, shipping scale, poly bags, labels, stretch wrap, scotty peeler, Goo Gone and tape. You can see that in July, I only spent $3.90 in supplies. I’ll still need to purchase supplies as I run out, but it won’t be everything, all at once like before. As a side note, I don’t have to buy shipping boxes or air pillows as I have an unlimited supply of them from work.
- Education: I spent $334.69 on training videos and books. I did this because I had no prior experience with selling online and wanted to learn about Amazon FBA quickly. However, I don’t plan on purchasing any more education/training materials at this time.
- Inbound Shipping Expenses: My inbound shipping costs to Amazon are high because I’ve been shipping weekly. Starting this month, I’m only going to send in shipments once or twice a month as I usually have just 20 to 30 products to send in each week. I estimate that by doing so, my monthly shipping costs will be less than $30.00.
As you can see, my prepping/shipping and education costs ate up a big chuck of my sales income. If I didn’t have them, I would be only down by $12.79.
Also, with this P&L, I’m tracking my website affiliate commissions and website expenses. Since the actual numbers are so tiny, I’m recording them when I actually get paid or pay an expense. I’m not accruing them like I am doing with FBA. This means that my recent Amazon Affiliate commissions that I earned won’t be showing until my next payment from Amazon, which should be in September. Also, I cancelled Aweber this month as I wasn’t getting very many subscribers to justify the cost. So, if you subscribed, please forgive me and you can keep up with my blog posts by following me on social media.
For my monthly subscriptions, I decided on the following (rounded to the nearest dollar):
- Amazon Professional Membership: $40.00
- TaxJar: $10.00
- QuickBooks Online: $10.00 – may be less expensive if you purchase it from Amazon’s Website. At the date of this post, you can get a 12 month subscription by downloading it from Amazon for $49.99. When I signed up for QB, I didn’t think about checking prices from other places and ended up purchasing my subscription from the QuickBooks website.
- ListLabelShip: $5.00
In September, I will either subscribe to Profit Bandit ($10.00) or ScanPower ($40.00). Ever since Profit Bandit started charging a $10.00 monthly fee, I’ve been using the Amazon Seller Scanning App. However, it takes me more time to source using that app because it takes more time for it to read the barcodes. On Labor Day weekend I’m going to sign up for the ScanPower free trial as I’ll have extra time to source that weekend. After I test out ScanPower, I’ll decide on which one to keep. Due to the monthly cost, it’ll probably be Profit Bandit unless ScanPower completely wows me.
I chose not to subscribe to InventoryLab because I would still use QB for my bookkeeping and I can list using Amazon Seller Central. I can’t justify the monthly cost for the the 20 to 30 items that I purchase each week. I modified the Amazon Cut and Paste spreadsheets that I mentioned in my last post and am able to track my inventory and cost of goods easily now.
Despite my loss, I am still very excited with Amazon FBA and am confident that I will hit profitability this month as my expenses are much lower and I am having a good sales week.
Good luck with your Amazon FBA selling and here are links (some affiliate, some not) to some of the products and services I recommend:
Profit Bandit – scanning app
QuickBooks Online Simple Start 2015 – bookkeeping
Amazon Cut and Paste Spreadsheet – to help track inventory and cost of goods
ListLabelShip – to get your Amazon FBA labels to your DYMO 450 printer
TaxJar – to help with sales tax
Amazon Boot Camp – training videos to help you get started with Amazon FBA
Make Thousands on Amazon in 10 Hours a Week! – book to help you get started with Amazon FBA
Take care and please feel free to leave a comment below or let me know if you have any questions.
Featured Image: Diana Poisson
Profit and Loss Report: Diana Poisson