August 2015 Monthly Stats
Welcome back to our Azon Monthly Stats post.
We are now drawing to the end of our 7th month selling on Amazon and the results continue to speak for themselves!
My prediction for this month was for sales to emulate those of July as we have found July & August quieter months and have been trying out some price experiments etc.
So before we look at what we’ve been testing and measuring let’s have a look at the numbers;
So here are our overall results (we currently have 3 products selling on Amazon)
But our main focus is on only one of the products, so to make it relevant to the past months reports and to show you what’s possible with one product I’m going to stick with just that products results;
So here are the sales for the month of August for our main product that we started selling in February;
Total Sales (For one product) – $74,864.65
Plus total cost of stock carried forward – $24,688
Stock & Shipping – $20988
Promotional Expenses – $10452
FBA Fees – $27918
Marketing Costs – $1683
Total Profit – $38,512 (Pre-tax)
So one of the first things you’ll notice if you look closely enough is that we sold more stock in August than July, but at a lower average price.
That’s because we were running a price experiment in August to see what effect a lower product price would have on our best seller ranking versus a higher spend in Amazon Ads.
The result was that whilst lowering our price did certainly help increase our best seller rank, it was difficult to sustain for any length of time.
Plus our profitability decreased, although not as much as I initially thought it would. In July without stock costs we were running at a profit margin of 44% and after this experiment our margin dropped to 42%.
Any drop is a bad thing of course, so the price has gone back up, the ad spend has gone back up and we’re now focusing on increasing our earnings rather than cutting our costs.
Always good to try these things though!
So as we enter into the run up to Christmas, our stock costs will start to increase as we order enough to cover the (hopeful) rush!
It’s our first Christmas season so we’re playing a bit of a guessing game but we have been led to believe that there may be an increase of sales over the busiest period of up to 500%!
We’ll have to wait and see.
So I’m expecting sales to start to rise through September and continue growing all the way through to early to mid Jan, giving us a very nice start to 2016!
So that’s it for now. I do hope you’ve found this post useful.
How You Can Do It Too
Unfortunately our training program Azon for Beginners is now closed for the foreseeable future. But there are lots of resources out there to help you with your journey.
1. This blog! Keep an eye out for update posts, tips and strategies for growing your Amazon business and be sure to download my The Beginners Guide to Building a Business on Amazon ebook which walks you through the 4 key steps to starting and growing an ecommerce business on Amazon
2. Keep your eyes & ears out for webinars and updates from Jason Fladlien & Wilson Mattos from Rapid Crush. These are the very clever guys we learnt from and I highly recommend their training programs.
3. Ezra Firestone is a must. Having been in the ecommerce game for over 10 years now he is a man of great experience and is happy to share his experiences with you. You can find him here – http://smartmarketer.com/
4. Scott Voelker is an Amazon Seller and runs a popular weekly podcast on how to start, grow and build your Amazon Business.
5. Chris Guthrie, also an experienced Amazon seller runs a blog which not only helps with selling on Amazon but also covers general online entrepreneurialism. Also from time to time he also opens his Amazon Selling coaching program which specialises in helping you to grow and build your own profitable Amazon business, plus he’s just launched a new podcast dedicated to Amazon sellers.
As I find more resources I’ll be sure to add them to my posts. In the meantime I hope these help!
To see all our Amazon Monthly Stat reports from the beginning and specific posts about Amazon go here – Our Amazon Journey
Share Your Thoughts With Me Below :)