Phew, it seems like it just was yesterday when I wrote the September update post. Time flies by so fast! We’re now officially in Quarter 4, so let the FUN begin! And it has already started.
No, seriously, it’s so strange. Just like the previous year and the year before that, I’m seeing an INSTANT spike in sales starting from November 1st.
Halloween night is the cut-off point, and right after that, people start to shop for Christmas products online like crazy. I’ve already seen a 100% increase in my sales in the first week of November compared to October:
So, I can’t even tell you HOW EXCITED I am about November’s sales figures! It should be another record-breaking month, for sure, but we’ll talk more about that in the first week of December.
For now, let’s take a look at my October results. Also, a few months ago, I started publishing much longer monthly update posts. These included other updates, such as Amazon news and tips and tricks. Well, it turns out, for a number of reasons, this was not the best approach:
1) These posts became extremely long (last month, it was more than 4000 words). People simply don’t have time to read extremely long posts, especially when the article contains so many mixed topics.
2) It’s hard to find the sub-topics of a post later on when the post gets archived and no one remembers what was written in that post. All of my posts are available on the Archive page, but you can’t really find information about the sub-topics covered in each of the posts, so the headline is the only indicator of what that post was all about.
3) It’s much easier for me to write shorter posts! 🙂 The only reason for me to not publish more content on this blog is the lack of time, or, to be precise, the lack of “mental energy” to sit down and write these long posts.
So, starting from this post, I’m going back to publishing my monthly income results separately. However, I will try to do some smaller posts on the latest Amazon news and on “how-to” topics related to starting and running an Amazon business.
Ok, without further ado, let’s get straight into it!
How to Ruin Prime Day!
(in an epic way)
Yes, I just want to get it off my chest. I totally ruined the Prime Day energy this year. How? Well, I didn’t do anything, and that meant I got the results I probably deserved—NOTHING!
As I explained in the September update post, my strategy in previous years was to NOT advertise on Prime Day. This is because, usually, I would end up paying lots of money in ad clicks and my NET profit wouldn’t be that good anyway. Yes, you would get a huge increase in sales for a few days, but the bottom line wouldn’t look that great due to the extra spend on ad clicks.
And I didn’t want to sell extra inventory just for the sake of it—especially this year, when I can clearly see that I will run out of Christmas stock (maybe even in November). So, there was no point in selling more just for the sake of selling more. I have established listings with hundreds of reviews, so I don’t really need to do it for the sake of building reviews.
But another part of the equation was that in previous years, my sales on Prime Day would increase regardless, even when I didn’t advertise!
And that was the basis of my strategy. I would not spend extra money on ads and simply “milk” the extra traffic and sales on Prime Day, making nice extra profits in the process.
Well, I don’t know what happened, but this year, it didn’t work that way. Oops!
In fact, my sales stayed steady or even slightly declined during the Prime Day week and only resumed to normal the following week. My guess is that my competitors simply advertised like crazy and that left very little traffic and sales for sellers like me who didn’t have Lightning Deals, Prime Vouchers and PPC campaigns set up.
I’m not too worried about it. Technically, I didn’t lose any money. My sales simply stayed the same as on normal days, but one thing is for sure: my “stay low on Prime Day and make money anyway” strategy doesn’t work anymore.
Next year, I will try some advertising strategies to make extra profits during Prime Day week. Sure, my products are super cheap, and yes, I don’t have much margin left for ads, but I can still make it work on my most targeted, best-converting keywords.
As I said, I’m not too sad about this as I didn’t “waste” any inventory, and I can make MORE money right now since people have actively started shopping for Christmas product variations.
Now, let’s take a look at the actual sales numbers and profit I made with my Amazon FBA business in October 2020.
My October 2020 Amazon FBA
Results: 4553 UNITS SOLD!
Another record month in 2020! In July of this year, I was SHOCKED to generate £31,732.88 in sales, but October exceeded that by almost 50%!!! I really didn’t expect sales to pick up so quickly, as I was waiting for the 1st of November for the Q4 momentum to kick in.
As you will see from the actual numbers, the majority of these sales came from the European marketplaces. I can’t stress enough how powerful such an expansion to the EU can be for your Amazon FBA business. Just look at my business and my numbers as an example. I have more than doubled my business and profits this year, and it’s all thanks to the Pan-EU programme!
I’m sure that things will change a bit after Brexit, but you can still do this and reap the benefits of a massive market of 300+ million people. I will cover strategies and tips on how exactly to do this in 2021.
Here’s a quick recap of my business model for people who are first-time readers:
I’m selling one simple product in multiple variations (around 20 active variations at the moment) and my selling prices are:
- Amazon UK: £7.99
- Amazon DE: €9.99
- Amazon FR: €9.99
- Amazon IT: €9.99
- Amazon ES: €9.99
- Amazon NL: €9.99
My NET profit per unit sold varies from marketplace to marketplace because Amazon’s FBA fees are different across regions:
- Amazon UK: £2.5
- Amazon DE: £3.3
- Amazon FR: £2
- Amazon IT: £2
- Amazon ES: £2.5
- Amazon NL: £3.3
Yes, this is the first month that I have made a few sales on Amazon Netherlands. I currently have five active listings there. My net profit on Amazon.nl is the same as on Amazon.de, as they use the German marketplace and fulfilment centres to fulfil these orders.
Let’s see how each marketplace performed separately:
Amazon UK Sales
2527 units sold, resulting in total sales worth £19,957.69
Net profit = 2527 x £2.5 = £6,317.50
Amazon DE Sales
622 units sold, resulting in total sales worth €14,236.92
Net profit = 622 x £3.3 = £2,052.60
Amazon FR Sales
686 units sold, resulting in total sales worth €6,814.46
Net profit = 686 x £2 = £1,372
Amazon IT Sales
492 units sold, resulting in total sales worth €4,801.28
Net profit = 492 x £2 = £984
Amazon ES Sales
217 units sold, resulting in total sales worth €2,148.64
Net profit = 217 x £2.5 = £542.50
Amazon NL Sales
9 units sold, resulting in total sales worth €71.97
Net profit = 9 x £3.3 = £29.70
Total units sold across all marketplaces: 4,553
Total sales: £19,957.69 + €28,073.27 (£25,317.96) = £45,275.65
Total net profit: £11,298.30
What more can you really ask for? More than £11k in NET profit selling one super-simple product on Amazon using FBA. I’m sick and tired of repeating this, but it’s true: I hardly spend ANY time on this business anymore. People have (finally) even managed to find the place in their account where they can download their INVOICES, so now I get very, very few emails from Amazon customers. I believe it was one or two in the month of October.
The business simply runs by itself and prints money. Of course, I’m fully aware that it won’t be like this all the time, but still, it’s a great feeling that you can actually make a passive income on Amazon once you have done all the hard work up front and gotten good rankings for your listings.
With that being said, I’m not naïve. I don’t expect this to last my lifetime—or even two or three years. There’s no such a thing as free lunch, and I know that if I don’t put more time into my business now, someone else will, and they will outcompete me. That much is certain. Also, I know that I have to get all my listings translated for the Netherlands and the Swedish marketplaces as soon as possible, as well as try out video ads and other stuff.
The problem is that I currently have too many active businesses, and I simply can’t split my time and energy across all of them evenly.
That’s why I plan on trying to sell this Amazon FBA business next year if I can get the right price for it. There are no concrete plans for this yet. It’s just an idea that I will try to explore next year. Obviously, I will keep you updated on my progress! 🙂
Ok, that’s it for today. I really hope that by publishing these income posts, I can inspire and motivate other people to fulfil their dreams and start their own businesses. It can be done, and NOW is the time to do it! Amazon has grown by more than 40% this year compared to last year, and it’s obvious from my own business results that there’s SO MUCH MONEY to be made on Amazon! You just have to know how to take a small piece of the pie.
If you need help with your Amazon journey, take a look at my Amazon Sharks video course. In more than 20+ hours of step-by-step videos, I will show you EXACTLY how to do what I do! I will even share my real-life business details with you—nothing is left out!
Plus, you can always rely on my personal support, which comes with my Amazon Sharks course.
I’m also very happy to hear from my followers! If you have a question, you can contact me directly via my help desk here OR leave it below the post in the comments block. I usually reply within 24 hours, Monday to Friday.