Let’s talk about the 4 things to know how much money can you make selling on Amazon?
If you want to know how much money can you make selling on Amazon, then better make sure you finish until the end of this article to find out. Let me share with you the things we’ve done to achieve this with our Quarter 4 £1M Challenge Update!
As you all know, I’ve been selling on Amazon for the last five years and in order to grow my Amazon business, I’ve set myself and my team a challenge which is to do £1M and aim to become a 7-figure Amazon seller.
To give you an update on what actually happened with our challenge is that we were able to achieve £1M earlier than expected and what’s more surprising is that we were able to end 2021 with £2M in sales. With that said, I’m going to share with you how we managed to surpass our £1M target.
How much money can you make selling on Amazon?
Before anything else, I will share with you what we thought would happen with the challenge. As said earlier, we initially planned to hit £1M in 18 months. And we started doing this in the month of June 2020.
Hypothetically, we divided £1M into 12 months, and so we arrived at £83,333 a month. So roughly £100,000 a month in 12 months, and that is including the pleasant months and the awful months.
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Now, what happened with the £1M Challenge is that we were able to hit £1M in revenue earlier than expected. With that said, we set a new target for the remaining months of 2021, which was Q4. So what I will be doing now is sharing with you our target revenue for Q4, spending target, and how we divided them.
How to generate £1M in Sales on Amazon
After going through the £1M plan, I will now share with you the following factors on how to generate £1M in sales on Amazon in the remaining three months.
So what are deals? Basically, it is the product itself that you need to find online and sell for a profit on Amazon or simply, buy low and sell high on Amazon.
Before you find products to resell on Amazon, you have to set sourcing criteria. In order to achieve our target, what we considered when setting the criteria is that we focus on purchasing fast-selling deals. You might be asking why to aim for fast-selling deals. Simply, you can spend more on other deals since the sales are quickly flowing.
There are instances that we have also encountered problems in terms of deals. One of which is that there are deals wherein we looked for other suppliers considering that the previous suppliers no longer have stock. Initially, my team had to make an extra effort to find suppliers.
Get a Good Prep Center
Considering that the prep center is a third-party shipping service where inventories are stored before delivering them to Amazon FBA, it saves so much of my time in terms of packing and preparing products.
Now you might be asking, what have we done with our prep center in preparation for Q4?
We communicated with our prep center and asked about the number of units they can handle. With that, we would know if they can handle the number of units we are going to send to them for Q4 because if not, we plan on adding another warehouse to cater to other units. Fortunately, our prep center was able to store, prepare, and ship all units to Amazon’s warehouses.
What is the Amazon loan? Amazon Lending is a program that allows Amazon sellers to grow their businesses by providing them with loans.
With that said, Amazon Lending offered us a £250k loan, which was very timely in Q4 because it helped us scale our business and buy more deals. Now, with the amount of money I have from the Amazon loan, I have more stock to buy and sell more items.
Let me tell you that this won’t be possible without empowered team members. For them to spend £250k in less than 3 months shows how much knowledge they have, and how much trust I give them to handle the money.
Have a great team
With the help of my team of Amazon Virtual Assistants, who are all working remotely from the Philippines, we managed to achieve my goal of £1M in three months. That’s why I cannot stress enough how building a team can help you grow your business, because not only do they save your time from endless sourcing, shipment creation, admin work, etc. they also give you results.
So sharing with you, I composed my team of 2 Admin VAs, 2 purchasing managers, 2 purchasing assistants, and 5 Sourcers, simply 11 VAs in total. And we’re continuously growing the team by hiring and training the VAs to expand our Amazon business and achieve long-term goals.
If you want to learn more about Amazon Virtual Assistants and how they can help you grow your Amazon business, you can read other articles named Amazon Virtual Assistant: When is the right time to Hire? And How to Work with your Amazon Virtual Assistant on Day 1: Top Tips.
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It is easy to set a target, but the preparations needed to achieve that target require more time. With that said, setting a meeting with your team and brainstorming with them can help you come up with plans to achieve your goals.
Most successful businesses keep detailed records. By doing so, you’ll know where the business stands financially and what potential challenges you could be facing. Just knowing this gives you time to create strategies to overcome those challenges.
Build a team
When you are running a business, you need to take a step back from your business and think about where you should spend your time. Again, time is money and if you spend all your time in the business on tasks that others could do, then you lack planning strategies to work on the business.
And as an Amazon seller who has been selling for 5 years, I cannot stress enough how hiring a team can help you grow your business. You will see the value they bring -from saving your time to making you more money!
Build your team with us!
Time to earn that £1M yourself!
After understanding everything about earning your first million and how much money can you make selling on Amazon, might as well check How I achieved £1M in 1 year in my Amazon Arbitrage to learn more about this £1M Challenge. Let's master and earn that £1M next quarter together.