February 2022 FBA Profit and Loss Report
How much did I actually make?
Intro
Welcome back! Since February has come to a close, it’s time to take a look at the P&L statement for the month. While there was a bit of a slowdown in the business due to a transition to outsourcing, I’m optimistic for the future. At the end of last year, I set a goal of $100,000 in revenue - and after 2 months I’m almost 50% of the way there which blows my mind. I’ll go into a bit more detail after I drop the numbers.
The Numbers
As a quick refresher, these numbers come from InventoryLab which only counts shipped orders:
Revenue: $19,229.17
Cost of Goods Sold: $8,055.47
Amazon Fees: $7,824.24 (includes shipping costs, fulfillment fees, storage, etc.)
Other Expenses: $1322 (See list below)
Net Profit: $2,027.46
Other Expenses:
Leads List - $100
Tactical Arbitrage (Full Suite) - $129
SellerAmp - $23
Profit Protector Pro - $60
Keepa - $22
Virtual Assistant Salary - $500
eCommerce Insurance - $162
Prep Center Fees - $326
New Expenses
The new expenses in my business are my Virtual Assistant who does manual sourcing, fees from my prep center, and eCommerce insurance. When you do your first month of over $10,000 in revenue, Amazon requires you to acquire insurance and provide them with the documentation. Overall the insurance will come out to around $500-$550 for the whole year if I remember correctly, and the initial payment was around a third of it. It’s a small price to pay in the grand scheme of things, so I won’t complain.
Category Breakdown
Unlike January, I’m starting to have a more even distribution with the types of products that I sell. Grocery is still up near the top because I have a few really good replens in that category, but I’m starting to experiment with more categories like tools, clothing, and sporting gear. Books decreased all the way down to 5% of my revenue since I didn’t have a large stockpile of them anymore, but as you can see they’re still one of the higher ROI categories at around 60%. This data doesn’t mean a whole lot in terms of how I run my business, but to me these kind of numbers are always fun to look at.
What’s Next?
Although the profit this month was a lot lower, I’m happy with the results because I did a lot to automate the business and there was a week where nothing was shipped out to FBA due to switching to a prep center. The goal moving forward is to swipe the credit card as much as I can - I’m establishing a minimum daily spend goal of $500 on inventory (I’ll talk about spend goals more in another post, it’s a cool topic). We’ll see where I end up at the end of March now that I have my systems in place, but my guess is that I’ll be hiring another Virtual Assistant so I have more leads to spend money on.
Conclusion
As always, I hope that these posts give you some good insight on how an FBA business is run. Feedback is always appreciated, and if you’re interested in learning more about selling on Amazon please check out the BowTiedArbitrage Discord where you can ask me questions at any time.