2022 Update: Q2 Review
I guess what they say is true - time really does fly when you're having fun because Q2 is officially over! It feels just like yesterday I was typing up my Q1 review post, which if you haven't read it yet, you can check it out here.
The second quarter has far exceeded my expectations. While I may not have achieved all the goals I had set for myself, I achieved several and then some!
Here's where I stand for the goals I had set for Q2:
✔️ Send in weekly shipments
✔️ Source in a new store
❌Have another $1,000 day
✔️Have another $10,000 month
✔️ Surpass my Amazon sales from Q1
Most would be thrilled on accomplishing 4 out of 5 goals, which I am. But the perfectionist in me is also a little pissed that I missed the last goal by $100!
Putting all my frustrations aside, I'm super proud of all that I accomplished in Q2 and I'm excited to take some time to reflect on where I'm currently at in my Amazon selling journey. Therefore, in this post I will share all things that happened in Q2 and what I'm hoping to achieve in Q3!
Q2 Review
In this Q2 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
I've said it before, and I'll say it again... the more money you spend, the more money you make. Therefore, my focus this quarter (and every quarter) is to spend as much money as possible on quality products. Placing more of my focus on this has also allowed me to see an increase in my income and profit!
My total expenses for Q1 totaled $23,103..30! Here's a breakdown:
Total Cost of Goods Sold: $12,466.85
Note: Inventory Lab utilizes an accrual-based accounting method, so this number may not reflect all COGs that were purchased in Q2.
Selling Fees: $4,204.97
FBA Transaction Fees: $4,300.87
FBA Inventory and Inbound Service Fees: $773.92
Other Expenses: $1,356.69
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: $28,072.20
Ebay Income: $207.63
Refunds: $1,237.31
Other Income: $480.86
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 Q2?
My net profit was $4,430.06, which is roughly $1,000 more than I made in Q1! I'm extremely happy with this number and am realizing that all my hard work is finally starting to pay off.
Supplies and Categories
The stores listed below were my 10 most profitable suppliers in Q2:
Walmart
Ollie's
Kohls
Chewy
CVS
Target
Marshalls
Nike
Staples
Homegoods
The categories listed below were my 10 most profitable in Q2:
Health and Beauty
Shoes
Pet Products
Grocery
Toy
Kitchen
Home
Apparel
Office/Computer/Wireless
Baby
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 Q2?
Are you even running a successful business if you don't encounter some type of obstacle, roadblock, or hardship along the way? Probably not. As the queen of stress, I'm not going to tell you to not stress about all the things that go wrong because then that would make me a hypocrite. But 9 times out of 10, it works out!
I had to have foot surgery......... AGAIN. If you read my Q1 review post, then you are fully aware that I had foot surgery during that timeframe as well. Sourcing in a surgical boot is a bit challenging, but I made it work.
My husband and I moved! While this was, without a doubt, the right decision, it definitely didn't make running an online business easy! I basically managed my business out of my car and prepped shipments out of an Air BnB and hotel room for a short amount of time. While it makes for a great story now, I learned to never take my office for granted!
And now for the frustrating parts!
Fun Fact - Did you know that a Mercedes-Benz Lego set is a weapon? Well, according to Amazon it is! I received a restricted products policy violation email, which impacted my account health for a short amount of time. I submitted an appeal, spoke with an account health specialist, and someone from seller support before the violation was finally removed from my account. I take any hit on my account very seriously, as it could potentially result in deactivation if not addressed. Beware if you're selling ASIN B09JKYSWN3!
On the following day, I received another violation! This time it was a product safety violation for some self-tanning drops I sold 6 months prior (Hello, Tanologist!). Because the description of the violation was so vague, I decided to call Amazon. They couldn't provide me with any further explanation other than it was possibly an expired or recalled product. I submitted an appeal and, thankfully, that violation was also removed and didn't have a negative impact on my account health.
And finally, the one that irks me the most - I got a bad review! Long story short, the customer was mad about the price. The price that THEY paid when THEY placed the order. They were also mad that they were charged for two... even though that's how many they ordered. Makes sense, right?. Well, unfortunately Amazon wouldn't remove the listing since it was an FBM order. All I could do was post a public reply indicating how the problem was managed.
What went right in Q2?
While some things did go wrong in Q2, I believe that I had more go right this time around! I reached several Amazon selling milestones that I always thought were so far out of reach. But I'm quickly realizing that I can meet any goal I set for myself, as long as I set my mind to it and put in the work!
I surpassed my Q1 sales by nearly $10,000! My strategy? Get out and source more! Scan everything - not just what you think might be selling or items that you're drawn to. Think outside the box when trying to find new products.
Another thing that went right (and probably the one that I'm most proud of) is that I had my most profitable month to date! In June, I had over $11,000 in product sales with a net profit of $2,200!
Another accomplishment that I achieved this quarter was getting ungated in 4 popular toy brands! The brands I chose to get ungated in were Barbie, Star Wars, Marvel, and Fischer-Price. While it is a bit pricey to pay to get ungated, it will open up so many more opportunities (especially in Q4)!
Need help getting ungated? Click here to learn more!
Another thing that went right this quarter, is that I reached over $46,000 in product sales so far this year! This is a huge accomplishment, especially since the year is only halfway over. To put it into perspective, my sales were roughly $35,000 for all of last year! If I can keep up my momentum, I am on pace to join the $100K club in no time.
Lastly, I surpassed $76,000 in product sales over the past 12 months! This is a huge milestone for me and realize that I could easily double or triple this number in a years' time (or less!).
Q3 Goals
There are so many goals I want to achieve; however, I know that I need to set reasonable goals that I can achieve over the next 3 months. Listed below are my goals I hope to achieve in Q3:
Quit my 9 to 5 and become a full-time Amazon seller!
Start going on more than 1 sourcing trip each week
Continue to send in weekly shipments (bonus if I can do 2 shipments a week)
Have a $1,000 day
Sell $10,000+ each month
Become a six-figure Amazon Seller
Surpass my Amazon sales from Q2