2022 Update: Q3 Review
I've really been looking forward to writing this post because I know, without a doubt, this quarter has been my strongest one yet. Q1 was just okay and Q2 was better, but Q3 has honestly taken me by surprise!
So, I'm going to keep the intro short and get to the good stuff. Here's where I stand for the goals I had set for Q3:
✔️Become a full-time Amazon Seller
✔️Start going on more than 1 sourcing trip each week
✔️Continue to send in weekly shipments
✔️Have a $1,000 day
✔️Sell $10,000+ each month
✔️Become a six-figure Amazon Seller
✔️Surpass my Amazon sales from Q2
When I set these goals for myself, I thought some of them were too far out of reach. I never really expected to have three five-figure months in a row, but here we are! Looking back, I realize that I'm just too damn hard on myself.
While there were definitely some trying times, which I'll discuss later in this post, I'd be lying if I said I wasn't super jacked about my progress! While I am in no way an expert Amazon Seller (if there is such a thing), I'm excited to review my numbers and reflect on my Amazon selling journey through Q3. Therefore, in this blog post I will share all things that happened in Q3 and what I'm hoping to achieve in Q4!
Q3 Review
In this Q3 review, I will do a complete number crunch sharing how much I spent, my profit, and more. This post is not intended to brag or boast about my journey. It's so you can catch a true glimpse at what being an Amazon seller is like. Let's get started!
Expenses, Income, & Profit
My total expenses for Q3 totaled $48,475.89, which is an increase of about $25K from the previous quarter! Here's a breakdown:
Total Cost of Goods Sold: $23,630.68
Just to put it into perspective, this total last quarter was $12,466.85
Note: Inventory Lab utilizes an accrual-based accounting method, so this number may not reflect all COGs that were purchased in Q3.
Selling Fees: $9,120.10
FBA Transaction Fees: $10,792.25
FBA Inventory and Inbound Service Fees: $1,078.19
Other Expenses: $3,857.94
Includes things like subscriptions, memberships, shipping costs, supplies, sales tax, and more!
I enjoy reviewing my expenses for the quarter, as I know it's a critical part of my business. But I will always be more excited to review my income and profit!
Amazon Sales: $60,664.58
This total was $28,072.20 in Q2!
Ebay Income: $106.92
Refunds: $2,052.13
Other Income: $682.36
This may include things like liquidations, shipping credits, promotional rebates, and revenue generated by my blog!
So, how much money did I actually make in Q3?
My net profit was $10,795.58, which is about $6,000 more than I made in Q2! I'm extremely happy with my profit this quarter, especially since I've only been full-time for about a month now.
Suppliers and Categories
The stores listed below were my 10 most profitable suppliers in Q3:
Ollie's
Walmart
Bargain Hunt
GNC
Target
Kohls
CVS
TJ Maxx
Big Lots
Marshalls
The categories listed below were my 10 most profitable in Q3:
Toys & Games
Health & Household
Health & Beauty
Beauty & Personal Care
Grocery
Pet Supplies
Clothing, Shoes, & Jewelry
Kitchen
Baby
Sports & Outdoors
All of my numbers were pulled from Inventory Lab. If you want to track your progress and run similar reports, click on the link below and get a 30-day free trial!
Disclaimer: This is an affiliate link. If you click through or make a purchase, I may receive a commission at no additional cost to you. Appreciate the support!
What went wrong in Q3?
Listed below are some of the challenges or obstacles I encountered during this quarter.
I received the #1 most dreaded notification... my account was at risk of deactivation! This occurred because my order defect rate was above the threshold due to a negative review that I received for an FBM order last quarter. Because it was FBM, I was unsuccessful in getting it removed; therefore, I had to wait this one out. It was a long 60 days, but my order defect rate is now back to normal and it's no longer impacting my account health.
The following week, I received an IP complaint! Talk about a stressful situation... my account is already at risk and then this happens. I appealed numerous times with a strong plan of action and my proof of purchase, but Amazon kept denying the appeal. The brand owner has never responded to my emails, so, unfortunately, I have to wait the 180ish days for the IP complaint to fall off. Just FYI, don't sell Papalook or Camlab products!
FOMO is a real thing and it almost got me this quarter! I found a hot item that I was selling FBM in early September... sold 6, then 12, then 24. The smart thing would have been to keep slowly buying more so that I could get out before demand started to slow down. But, because I had FOMO, I cleared the shelf and bought 160 units! Now, this situation did end up working out in my favor as I only have 1 unit remaining, but it definitely could have ended differently and was a big learning opportunity for me.
To be honest, I've been a bit of an emotional trainwreck this quarter. I've felt defeated and lonely at times and have questioned if I have what it takes to be a successful Amazon Seller. I recently wrote a blog post on this, which is linked below!
What went right in Q3?
Listed below are some milestones I hit during this quarter and things that I think should be celebrated!
This quarter was a big one for me, but I think that I'm most proud of becoming a full-time Amazon Seller! It still doesn't seem real at times and, to be honest, I've never worked so hard for something in my life. But it's so exciting to see all of the hard work pay off, especially knowing that I have no one to thank for it but myself.
I had my most profitable month AND quarter to date! My business has grown substantially over the past 3 months. I've been sourcing a lot more (3 ish times per week) and have become way more confident in finding products. I'm a firm believer that consistency is key!
I also joined the 100K club in Q3! I never imagined hitting this milestone at the beginning of the year. I've said it before, but I want to say it again - I don't share these milestones or numbers to brag about my journey. In fact, compared to other larger sellers, they are mediocre at best. But I just want you to know that if I can do it, then so can you! My #1 tip to become successful is to make selling on Amazon your top priority.
In Q3, I had three record months of product sales in a row. In July I sold $17.83K worth of product, followed by $21.18K in August, and $22.95K in September! At this rate, I can't wat to see what my monthly sales look like in Q4.
Do you remember when I talked about FOMO in what went wrong this quarter? Well, I'm going to look on the bright side because I sold nearly 200 units of that ONE item via FBM with a net profit of $977! The price and sales rank has remained steady, so I'm hoping to find some more of them this week.
Q4 Goals
Find "the" hot toy or holiday item and sell the shit out of it 🤣
Do more FBM
Start incorporating more OA into my weekly sourcing routine
Have a $2,000 day
Sell $20,000+ each month
Surpass my Amazon Sales from Q3 AND last Q4
And, this may be a long shot, but I'd also love to hit $80,000+ in product sales and $20,000+ in profit!