I do believe this is the first time in a while that I’ve gotten an income report out on time — dare I say, the first time I’ve ever released one on the first day of the month! I apologize for being behind in updates and responding to comments. I took a much needed but far too long break, but I hope to be back on schedule now that things have calmed down.
With that said, August turned out to be a good month overall for us. We made some significant strides in our long-term business goals (outside of re-selling) and we also hit some milestones as well. Our biggest accomplishment in August was finally bringing some help on board. Our newest employee officially began working on August 6th. 🙂 She has taken a huge burden off of my shoulders and she is largely responsible for me being able to find the time to blog again. In other news, we hit an eBay sales milestone this month and hopefully it won’t be the last.
As I usually preface in most of my income reports, the figures that I report below are from part-time re-selling. The hours that I put in fluctuate from 2 to 15 hours per week. My first and full-time job is my family and my home. I occasionally have the help of my husband and that equates to approximately 1 to 6 hours per week. Re-selling is something that we both do on the side and unless our circumstances change, it will remain a part-time venture. With that in mind, if you can dedicate full-time hours to re-selling, your numbers will in all likelihood be higher than those that I report on this blog.
With that out of the way, let’s jump into the numbers…
August was a record month in terms of eBay sales. I don’t believe I’ve ever grossed this much on eBay in all my 13 years of selling there. I believe our spike in sales was due largely in part to our newest employee (yippee!). After showing her the basics, creating a “how-to” manual and walking her through her first handful of eBay listings, she has been an absolute asset when it comes to creating new listings. This was the first time that I’ve sold at least 100 items in a month and it would not have been possible without her help. I’m usually lucky to sell 100 items across three or four months, so to see such an increase in productivity lets me know that she is well worth the costs to hire a legitimate employee.
Here are this month’s numbers:
We finished this month with 115 listings sold. Our average sales price was $31.47 and once again, this was another month where 100% of the items we sold consisted of liquidated merchandise that we already had on-hand. We did not purchase anything new with the intentions of re-selling it on eBay.
I didn’t set any gross sales goals for August, but I did want to at least recoup $1,000 of our cost of goods. As I’ve said in previous posts, I believe we have approximately $3,000 worth of merchandise that was purchased with every intention to resell, but we couldn’t or just didn’t get around to listing it. Approximately 80% of that merchandise is liquidation merchandise and 20% of it is thrifted items that have been sitting for well over a year.
I am so happy to see that we finally made back approximately 1/3 of the amount of inventory we have sitting around unlisted and if I had to set an eBay goal for September, it would be to recoup another 1/3 or $1000 of our money that’s tied up in that inventory. Ultimately, all of our eBay earnings will either go towards our Q4 fund or towards paying for freight costs for the pallets that we purchase.
Nothing spectacular happened in terms of Amazon sales. We experienced another slump in sales that I can only attribute to my weariness to send in large amounts of inventory. After being suspended, Hubby and I agreed that we would only keep a month’s worth of inventory in Amazon’s warehouse for our most popular SKUs. The same holds true for any new items that we source via liquidation or retail buying. Prior to our suspension, I would purchase much larger quantities even if it meant that we had several months worth of inventory in Amazon’s warehouse. Now I am more cautious and in the long run it probably makes better business sense.
Here are our sales for the month:
Looking at the graph below, you can see that our average sales days (in blue) generally hovered near or below $500 per day:
There were many days where we barely cracked $300 and on the 26th, we actually earned less than we did the previous year. Hubby was concerned but I honestly spent much of the month jaded and putting other plans into action. Things turned around for us by the end of the month when we experienced a spike in sales due to sending in a larger shipment of merchandise. This time around, I purchased less from our supplier and I don’t intend to replenish until we’ve sold through at least 70% of the merchandise.
At this point I’m not sure how much my reluctance to “go deep” on products will play out in Q4. Only time will tell.
We started gearing up for Q4 at the tail end of August. This time around I intend to keep a personal journal of what is working for us and what I need to restock based on last year’s sales. Additionally, I’m lining up wholesale suppliers to take advantage of best sellers that I missed out on last year. Since we don’t celebrate or promote Halloween, most of our wholesale items will focus on Thanksgiving and Christmas related products. I don’t expect to see any fruits of our labor until November or December even though we will begin buying now.
In other news, Hubby is about to enter the two most busiest weeks of the year at work and then things will calm down for him until the new year. This means that soon he will have an extra hour or two per day on his hands and he’s already started researching how we can get started with private labeling. I’m still not entirely sold on the idea of buying from China so I’m going to let him take the lead on this while I continue to work through our existing inventory and finding new liquidation suppliers.
There are only 29 days that remain in this month until Q4 is officially underway. I would like to move the rest of the dormant eBay inventory that we have on-hand in order to make room for new merchandise. Our shelves are bursting at the seams and it would totally make my year to get rid of everything and start fresh. Wish us luck!
Until next time,