Anyone can make a lot of money on Amazon. Making money is another matter. Getting the numbers right and controlling all the costs and taxes related to selling on this platform is not that complicated either, but in the end you have to take it into account.
- Shipping costs
- Product costs
- Packaging costs
- Amazon Commission
- VAT
- Handling or FBA cost (in case of doing FBA obviously)
If you play with tight margins you also have to take this into account:
- Cost of returns
- Storage cost
- Cost of capital (especially if you have borrowed money)
Having numbers under control is the most important thing. If you don’t master the small numbers, you’ll never be able to get to the big ones.
Time to invoice 1 million euros
Everything is relative, including time. It is not the same to start with an initial investment of 100k or with 10k, obviously.
That is why depending on this initial start it will take more or less time.
I’m going to simplify a lot so the numbers are easy to calculate:
- Initial investment in product: 100k
- Time to sell all stock (year 1): 3 months (year 1), 2 months (year 2), 1 month (year 3)
There is not much more we need to know. That said, I have simplified it a lot.
- Annual turnover: 400k (year 1), 1,000k (year 2)
Now let’s do the numbers for the first three years with an initial investment of 10k:
- Annual turnover: 40k (year 1), 100k (year 2), 220k (year 3)
As I said. It is very simplified since I have philippines whatsapp number data not subtracted any structural costs, even if they are minimal. After three years, in the case of the 10k as initial investment, we are at 220k. It is not a million, but not bad, I would say.
What we have taken
A promise is a promise. It took us eight years reviews documenting previous experience to bill one million euros in an Amazon account. If you allow me to add up several accounts, we already achieved this last year. This year, between both accounts, we should even exceed two million if all goes well.
Once you get into bigger numbers, things go faster as you can see. Of the eight years selling on Amazon, we have only really taken it seriously for the last four.
To simplify things once again
It must also be said that we have invested line data more than 100k to make it possible. In an ideal scenario it would have taken one year less, but with four years it is not so bad.
I would even say this: No matter how much you start with, you can reach a million euros in less than ten years if you are consistent, you do not take any profits and your structural costs are minimal.
By 2025 we should be close to three million. But let’s give time to time. First we have to do things right in 2024.