Even though I’ve written a good deal about our FBA dealings, its easy to forget that we are still new at this. We only started researching and doing some intro sourcing back in August but have been very active ever since and have learned a ton by trial and error. Which leads into the main thought of this piece which is the idea of reinvesting in our FBA business.
Lets start by going back to August when I began researching FBA and what it potentially took to make money in this field. Over and over people who know what they’re talking about banged the drum of reinvesting in the business and not taking the profits until things get rolling. Of course I understand what they’re talking about and why they stress this idea but it wasn’t until we started diving into the meat and potatoes that I truly ‘got it’. Remember, to make money in FBA you need to spent money, basically dollar for dollar if you’re doing online or retail arbitrage like most beginners do. When you start to see sales coming in, the numbers can be deceiving when you’re looking at the sale price but come to realize you’re maybe only making lets say $10 on a single sale.
So lets say you’ve gotten 30 sales at a $10 average net profit giving you $300 extra to work with. What’s the smart thing to do? Take that $300 and source your heart out? How about buying software that might help automate your business? Why not buy a Dymo label printer or a nice prep table to make boxing items easier? How about hiring outside VA help to save you time and effort? All of these are the right answers. If your goal is to grow the business, the wrong answer is to put it into your savings or buy a nice watch for yourself.
2 Recent Re-Investments We Made
Now that we’re into this FBA thing full throttle, it was time that we went beyond the standard reinvestments and looked outside the box. Well, not really but in our current model it certainly was. So, we did two recent things.
First, I opened my eyes and ears to the idea of wholesale and private labeling items on Amazon. It only makes sense once you realize that these same items that you can private label from China at very low cost can be sold at high volumes for solid profits. I joined Andy Slamans’ paid Private Label Course and Facebook group to learn all I could about the subject of private labeling and believe me the cost Andy placed on the course could have been 5x higher and still would have been fair. I did join the course a bit later than most others in the group so I’m still working my way through the material and forming some thoughts and ideas. Needless to say private labeling is very high on my to-do list for 2015.
Second, I put in to be part of Chris Green’s Deals Done Right beta group. The idea behind this group is to deliver personalized, non-advertised deals to your email/phone (and not a Facebook Forum) that have been located and vetted by a group of big-time Amazon sellers. I put a ton of faith in Chris and his staff to do this right because I know he aims to bring the value of what we paid to be in the group and well beyond. This will be a beta testing group that fortunately I was selected to be part of and pay to be in along with 100 others so I’m looking forward to testing out this concept and helping make the transition to other future members. And no, the deals will not be brought to this group…that’s the point! 🙂
These two investments are paid for directly by the profits that we made from September 2014 until now. Total costs for these two combined? Under $1,000. Are you kidding me? Less that $1,000 to show me step by step how to private label items successfully as well as get personalized, guaranteed profitable deals delivered to me by one of the more respected people out there doing online selling. What other field can you be connected to two of the most active minds in that realm for less than a normal month’s rent?
Some of you may now be at the point where you need to make such decisions and although its tempting to bank the profits I know re-investing is the smarter and more profitable choice in the long run. Join me and put your money back into the business. Find some other ways to learn from the FBA gurus via online courses, private coaching or books. No one knows it all when it comes to FBA so learn from those who know the most.