Dillon Carter

Entrepreneur, Hacker and Future Mad Scientist 🚀☕

Category: Amazon FBA Business

Getting Fired and Building My Amazon FBA Business Full Time

So, I got fired. Turns out having a normal conversation with your part-time GM could turn very irrational on their end and end up you being let go. To sum it up, shit happens.

 

I learned a lot from the conversation with my GM and how some people simply cannot accept systemic gaps and pitfalls in their (the owners) business. Ego and pride can get too much in the way and blind you to massive opportunities to increase performance.

 

I saw this coming early on as there was a clear shift in the work environment. That’s the whole reason I started this Amazon FBA business. I wanted to grow it enough until I could quit. Luckily, my GM sped up the timeline a bit faster than I would.

 

So now I’m giving this a go full-time. It’s not easy, as it’s a major hustle each day with some days turning up zero products, but I can see this growing quite rapidly as I turn my full attention towards it.

 

The Different Amazon FBA Business Models

 

There are different ways to make money with Amazon FBA – Retail Arbitrage, Online Arbitrage, Wholesaling and Private Label.

 

I focus the majority of my efforts on Retail Arbitrage as it’s the easiest way to start making a profit from week one. Online Arbitrage is essentially the same thing, except you purchase your products online.

 

The goal is to eventually move into Wholesaling products, which allows you to purchase bulk orders of profitable products. Instead of purchasing one unit of product A and 3 units of product B, I would bulk order 100-500 units of product A and perhaps even 1,000 units of product B.

 

Even better, I wouldn’t have to run around from store to store every day. I could do all of this from my laptop while using my miles and points to travel wherever I’d like with my girlfriend.

 

How I’m Currently Getting Along

 

This was a very slow process and I really had to jump out of my comfort zone while scanning products on my phone in local stores.

 

I got buried pretty deep into a slump where I went a few weeks without finding any profitable products. I realized I was spending way too much of my time on just clearance isles. Sure, clearance aisles are a great starting point, but you have to take an extra thirty minutes to an hour on aisles that aren’t clearance.

 

Amazon FBA Products

Two store haul worth $147.19 Profit (3 hours worth of work!)

Making this switch has gotten me back in the game in a major way. I spent a few hours in two stores earlier today and came out with $147 dollars in profitable items which I’ll have shipped out and listed by the end of tomorrow.

 

So, for now, I’ll continue focusing on Retail Arbitrage with a sprinkle of Online Arbitrage, at least until The Wholesale Formula course opens back up and I can jump full force into wholesaling like I’d like to do.

 

I Am Taking A Risk Though

 

I can’t fully sustain doing this full-time for long. I have a few months of runway to get things up and running before I’ll need to get a job to cover my bills until I’m moving the units needed each month.

 

Amazon business sales report

Current Months Sales…

So this is a risk, like any other business. The good news is that I have a decent amount of time until the summer semester is over to ship the needed amount of units to generate enough profit to pay myself and grow.

 

My Inventory Goals

 

With Amazon it’s all about “feeding the beast”. The more units you have at the Amazon warehouse, the more sales you’ll get each day.

 

Amazon allows you to keep 5,000 normal size units at any given time.

 

My first goal is to have 1,000 units of products in inventory at any given time and then increase that amount as quickly as possible.

 

From what I’ve gathered having roughly 3,000 units should generate around $300 in sales a day. If you’ve purchase products with good enough margins you should have $100 in net profits each day from that amount of sales.

 

This means that I only need 1,500 units in inventory to reach my personal profit goals to go full time.

 

This is going to take a massive amount of effort. I’m talking Gary V kind of hustle.

 

With limited runway and capital, I’ll have to get creative and move product as fastly as I possibly can.

 

I’ll keep you posted throughout this journey as best I possibly can.

Starting An Amazon FBA Business For Fun and Profit

Over the course of this year I realized that I needed to make some changes. I’d already automated my personal finances and begun traveling for free, but going back to college full-time required me to take a job to sustain myself rather quickly.

 

I soon realized this was not what I was meant to do and lost interest. You’ll notice in my monthly reports that I still set goals for this job, but it’s time to extract myself from it and achieve true freedom.

 

I searched for various new business models to focus in on and then landed on Amazon FBA. I listen to a decent amount of podcasts and the same thing kept popping up; I needed to give this a try!

 

After giving it a bit of thought I decided to jump into an FBA course to give me a better understanding of how to go about doing this. Instead of doing my usual information overload, I decided to take action the very next day and bought roughly $200 worth of product.

 

I know this doesn’t seem like a large investment, but I’m currently doing Retail Arbitrage which is going to local stores to find deeply discounted products to resell on Amazon for a profit.

 

Project Extraction – The Plan

 

I’m going to lay it all out here for you. I currently need to generate a profit of $2,000 /month from this business to go full-time. I’ve been getting 50% ROI on products, but let’s assume a 25% ROI to be conservative.

 

This means that I need to be purchasing roughly $8,000 a month to yield $2,000 profit. At first, I didn’t realize how much volume I would need to do each month, but the numbers don’t lie.

 

So now my weekly goal is to somehow spend $2,000 on product either at local stores or using online sourcing as well…. Now that’s a massive goal.

 

In truth, this is only a minor step towards a much larger goal with this business model. That’s right, this is only phase one.

 

Where I’m Currently At With This Business

 

So far I’ve only spent $992.39 in total. This includes cost of goods, supplies and education.

 

In sales, I’ve done $239.61 with actual profit being $143.63. I still have a lot of inventory waiting for sell. A rather slow start as I really get the hang of sourcing locally and online.

 

I’m not profitable yet by any means, but the rule of thumb is that it should take roughly three months to turn a real profit and until I reach the volume needed to go full-time, all profit will be put back into the business.

 

This should vastly decrease the timeframe needed to reach my goal.

 

Here is a snapshot of what I did in June.

 

starting an amazon fba business from scratch

 

June was all about getting set up and learning the process. Now that I’ve done that, It’s time to really throw down some capital on inventory and scale up to the volume needed.

 

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