The Place I Post Everything Related to Our FBA Business
Duane, This is totally awesome. I was wondering could you tell us how you keep track of all your numbers? Do you use Outright, something within Amazon or some other system. You always seem to know the ROI, profit margins, etc. I know we need to know our numbers to see if we are even profiting. Thanks for the blog. It will be a real encouragement of what is possible. Sydney
Hi Sydney,I use Quickbooks Pro 2013 to keep a list with my Cost of Goods. At then end of each month I download my Monthly Sales from Amazon (Reports > Business Reports > Custom Dates). This report gives me each individual order for the month. I delete every column except Description, Quantity, Product Sales, Selling Fees, FBA Fees, Other Transaction Fees, Other, and Total. Then I add a column for Cost of Goods (where I manually enter my data from Quickbooks) and I add a Profit column. In the Profit column I used a formula to subtract Cost of Goods column from Total column. After I set all that up it's just basic math:Actual Sales = Total Sales - Cancellations - FeesProfit = Actual Sales - Cost of GoodsProfit Margin = Profit / Actual SalesROI = Profit / Cost of GoodsHope this helps!
Hi Duane,Thanks for sharing this info. Did you calculate work hours as well? I'm curious to know how many hours a month it takes you to generate that kind of profit.
Hi John! I have to do better at checking for comments. :) I don't track my work hours. Things have changed quite a bit since posting these numbers. I have hired a team member, among other things and sales have increased to about $11,500 per month. I would estimate I currently work 40-50 hours per week and my team member works about 10 hours doing packing and shipping and another 5 hours sourcing.When I first started in January 2013 through August 2013 I would estimate hours per week were around 60.