This income report will be another late and short post, but I do feel like I’ve finally gotten back into the swing of things so hopefully my next income report will be on time.
The month of April came and went rather quickly and there is not much to highlight other than the fact that our sales have remained steady and we are moving towards heavily investing our time and efforts into making liquidated merchandise a significant part of our business model.
This month’s reselling focused entirely around Amazon FBA. I did not list any items on eBay so without further ado, let’s take a look at the numbers for this month…
Our sales increased slightly over last month’s numbers. So far it appears that we’re maintaining an average of $20k in gross sales:
To our surprise, over 60% of this month’s sales were attributed to liquidated merchandise. Around the middle of the month, I took a trip to Southern California to visit a liquidator in person. Prior to my visit, our only dealings with this particular liquidator were via online purchases. I really wanted to get an idea of what other types of items they had in stock that they didn’t put on their website — and I knew there was more — much more than they listed online. Before I shelled out money for a plane ticket, my husband and I decided to send his mother (who lives in Southern California) to scout the place out for us. Once she told us that this place was worth its salt, we decided that I would go and visit.
Fortunately, I was not disappointed.
I did not take any photos from inside the warehouse, but I don’t mind sharing some of my finds. One of my favorite finds were these discontinued shoes that the liquidator carried new in box:
I don’t remember where exactly I learned of this style of shoe, but my best guess is that it was by way of one of the eBay selling Facebook groups that I was formerly a member of. I remembered that these shoes sold pretty well in used condition, so when I found them in brand new condition, I didn’t hesitate to buy everything that they had.
I also found a rack of these pants that were recently liquidated by a well known high end department store.
All of the merchandise that I purchased was in new condition with their original tags and all of it was *deeply* discounted. I was able to purchase those shoes for less than $20 per pair and the pants for under $18 per pair.
Needless to say, I now have a new spot to source from that is well worth the plane ride.
To keep these income reports short and hopefully on time in the future, I am revamping the way I report our numbers. From here on out, I am going to estimate that we take home approximately 35% of our gross monthly sales since that has proven to be the case these past few months. Although this number fluctuates and is based on a number of factors (such as our premium placement fee costs, customer returns, ROI, etc), it does paint a fairly accurate figure and helps me avoid having to take tons of screenshots that makes writing these posts so time consuming.
With that said, our estimated net profit for the month was $8k.
Student Loan Payoff Progress
You may have noticed that I haven’t included any updates in regards to paying off my student loans in quite a few months and that is simply because I still had not put any additional money towards my loans. Back in October I decided that I was going to invest all of our earnings into inventory. Those plans changed in December when I felt that I should throw something at my loans and decided that even a $100 in additional student loan payments was better than nothing. My goal was to use the money that I was making from the part-time work that I do for my father’s company to make a small contribution. Unfortunately, I only made two (2) extra payments to my loans since then, HOWEVER, that all changed in April when I paid off an entire loan — to the tune of $2k:
I am proud to report that I finally paid off loan 1-03! Yippee! 🙂
Based on my last student loan update for December 2014, my balance sat at $7,952.99. After two additional $100 payments in January and February, my regularly scheduled monthly payments, and the $2,626.76 payment that I made in April, my balance now sits at $4k:
My monthly student loan payment dropped down to $80 after completely eliminating loan #1-03. That’s an extra $50 that Hubby and I can put back into our savings account.
Although I’m so close to eliminating this debt, it will be a bitter sweet moment once it happens since I know I will have accomplished the goal of this blog and will probably discontinue writing about my efforts. Subconsciously I feel as though I’m procrastinating in paying them off so that I can continue blogging for just a little longer. 🙂
We have a lot of goals and plans for our Amazon business that I never would have thought I would be entertaining. Unbeknownst to many of my readers, Hubby and I are in the process of officially incorporating our business. I did not think that we would take things this far, but after many discussions we feel that it is a necessary step — especially in light of the fact that we also plan to hire our first employee. 🙂
In addition to working on those two goals, I would also like to add at least one new source per month for liquidated merchandise to our current list of suppliers. Liquidation has become the catalyst for helping to maintain our current numbers. Although our average cost per unit sold is low we more than make up for it in terms of the volume that we sell versus what I was doing by myself last year.
Finally, I hope that we can use next month to really tackle our lingering eBay inventory. I keep saying it over and over, but Hubby and I have grown tired of seeing all of the money that we have tied up in eBay merchandise and the only way to tackle this problem is to put ourselves on a spending freeze.
Wish us luck! 🙂
Until next time,