My second batch of Amazon products have arrived in the Amazon warehouse and are ready to buy. This second order was for 1000 units and followed on from my initial 500 units.
From this first 500 units I kept a few back for the purposes of sending out to blogs to get a bit of PR, although I have not done this yet so they are sitting around in my (converted) loft/home office. Anyway, I have just done a detailed profit/loss analysis of the first batch of products, which worked out to be 495 units sold.
My primary objective with this first batch was to get as many product reviews and seller feedback as possible and break even. And of course learn a hell of a lot.
Did I achieve this?
Well I am pushing 50 reviews, nearly all of which are 5 star. In fact I have one 3 star, a couple of 4 stars and the rest are 5 stars. I am close to 65 seller feedback, all positive. So this has been a great success. Nearly 10% product reviews and over 10% seller feedback from products sold is brilliant. I’ll get on to how I achieved this later.
What about breaking even. Well I made a profit of around £300. Not huge but it’s a profit and I achieved my break even goal. Factor in to this product costs, shipping, Amazon warehouse costs, Amazon seller fees, and Amazon PPC advertising and it’s a pretty solid achievement. I actually spent nearly £2K on advertising, which got me worried when I was adding things up, but even with this large outlay I am £300 in profit. So I am very happy.
Oh, I’ve learnt loads too… 🙂
Moving forward I have done a prediction on the profits I am anticipating from this second batch of Amazon products. I hope to reduce my advertising spend significantly, in fact half it. Also my cost per unit on the shelves is around 14% lower this time around (because of my reduced unit cost & shipping costs), so this alone will make me an extra £600 over the 1000 units.
So, from this second batch of 1000 units I hope to make a profit of around £3000. Also get a to 150 product reviews and close to 200 seller feedback.
And as I’ve mentioned earlier I am going to introduce more complementary products that should impact positively on my initial product sales.