The PROFIT I KEPT from $305,000 in Amazon FBA Sales

Hey, it’s Beau Crabill here Leading expert for
selling products on Amazon And in this video,
I’m gonna show you my net profit on a
$305,000 per month on Amazon
on one account Now on this video,
I’m gonna be very transparent $305,000 is the gross sales
I did on one account You know, this is one of my
four accounts I have going on I’m gonna show you,
to the penny the net profit that
I made off of that Now, also in this video,
I’m gonna give you some tips on expenses, and why
you starting out or scaling, or making
a lot of money already that you can literally
go bankrupt That you can
lose out and just businesses go down
overnight because you don’t know how to
manage your expenses And no one’s talking about this
on the Amazon field Before I get into this video,
I do online retail Meaning, I sell big name
brand products on Amazon I’m not doing
private label And people typically
like to use margin as a term for dealing
with private label All I care about is my
return on investment And people know about that,
ROI stands for return on investment But in this video, I’m gonna
show you gross sales and the net profit
onto that So, which you can actually call
the margin, if that makes sense So the ROI is always
higher than the margin So, I’m actually gonna show you
my Amazon sales right now Just to show you, this is,
you know, 100% legit So you can actually see,
Amazon account right there You can see,
this is me And I’m gonna hover my mouse
over here to hit refresh ‘Cause if you don’t know people can literally fake their
screenshots and all that stuff So hit refresh $305,000,
boom And that’s in a month This is one of my
four accounts I actually have a fifth account
that we’re just warming up so it’s really 1 of 4 We do pretty serious numbers
on the other accounts as well However, what I wanna
show you right now is screenshots right here breaking down the return on
investments on my products So, I have a couple
hundred SKUs into my in this Amazon
account right here We do FBM on some of ’em,
we do a lot of FBA mostly And you can see,
ROI is as high as 150% You know, 71%, 58% You can see, 11% As low as 11%,
as low as 10% So, and if you
actually look I’m actually gonna pull up
InventoryLabs right now It’s like a
screenshot of this Net profit from that
is $103,745.57 So over $100,000
of net profit If I take that number,
divide it by the gross sales which would technically be
the margin, not the ROI The ROI is
gonna be higher My accountant can
tell you the true ROI on the amount of money that
we expended in that month And amount of money that was
raised because sometimes we have products that
were in our stores I’m not actually gonna
go over ROI because sometimes we didn’t get
that investment back until a couple of months ago,
but either way 103 103.7 divided by 305 is
34% return on investment Or margin So, 34% of my sales
is net profit Now, here’s where a lot of
people can make mistakes I’ve seen people, you know,
do this in private label People do this in arbitrage,
people do this in online retail Some people like to call
my business model wholesale And where you will
get messed over Absolutely destroyed,
is expenses Now, the biggest expense
that people will have is warehousing
and employees Funny thing is, my warehousing
and employees are an asset to me They both make me money And actually, I don’t
have a warehouse but I’m explaining it to you ‘Cause if you’re watching
this video right now and if you wanna sell name
brand products on Amazon You’re just
starting out on Amazon where if you’re making
a bunch of money you need to listen
to this video I don’t care if you’re making
more money than me right now you’re probably gonna
get better from this Because if you don’t,
might make a bunch of mistakes I was actually in
a heated argument with one of my best students
about a year and a half ago And I know they
made a big mistake They’re doing well now ’cause
they went back to my advice But they were doing $100,000,
you know, in gross sales They’re netting
$30,000 a month and things
were going great And they thought that they
needed to get into a warehouse They thought that for them
to grow the next level they needed to get a warehouse
and do all these stuff because they’re prepping
and they’re scared I’m like, that’s gonna be
a huge issue I’m gonna talk about
why that’s a huge issue and why that’s
gonna screw you over But before I get into that,
people are gonna say Beau, you know, I can’t find
products that are even a 30% ROI Even a 20% ROI And you saw my account,
I’m having 150% 20%, 70%, etc. And the beautiful thing is,
I just came up with a book The Secrets to
Selling on Amazon I’m not trying to pitch
my book in here, but it’s You can get it for pretty cheap,
it’s like $20 But in the book,
I talk about how I’m taking you complete
from A to Z on Amazon And the issue that
some people have is when they’re operating a
big business, doing big revenues they also have big expenses So they forget on how
you go from 0 to 100 From 0 to profitability And the biggest thing
I like to stress with people is your ROI, the profit
you’ll make in the beginning on the dollar amount
you’re starting with is gonna be the lowest
it will ever be at the start So I tell people
all the time Go for products that
are making a 10% ROI around that range
at the start Don’t shoot for 100%,
don’t shoot for 200% Don’t shoot for 50%,
don’t shoot for 40% Don’t shoot for 34%,
which is my margin right now Shoot for 10% above You know, even if
it gets 9.8%, go for it You wanna know why? Did you see that
in my account? I have 11%, 10% The reasons why is because
when I work with suppliers I’m new to some of them And I would take And still, even at
the end of the day You know, I was
talking to Alex Mehr who I see as a great mentor,
and you know business person
that I look up to He was, you know,
him and Tai Lopez are really focusing on buying a bunch
of brands right now And he was
telling me about You know,
we were working Or, you know, he was like
pitching his like investment thing And he was telling me about how
the companies he’s looking at he kinda realized that
10% ROI, you know or margin is kinda the
break even where like if people are not
getting that at least they’re kinda, could be
very closely going down So, the reason why I say go
for 10% above is because when you’re getting
started off with these suppliers are not gonna
give you the best deals So I’m now working
with a lot of suppliers The reason why my
margin’s 34% is because I have good
relationships with them So before I get into this
whole expenses tips and advice remember that Aim low,
aim low, aim low It’s all about
buying low, selling high And to buy low, you sometimes
have to start, you know a little higher
than usual So there’s that And also, you’re gonna invest
on so many different products If you’re saying, oh I’m only
gonna go for 25% ROI or at least $4 of profit It’s bogus So now, let me get into
probably the best advice you will hear
about expenses No one’s
talking about this So, again, going back
to the student He wanted to get
into a warehouse Now here’s an issue with
getting a huge expense And so, I mean,
people say, Beau You know, you’re a I mean, you’re
kind of a hypocrite You know, you have
an expensive car you have an
expensive house Yeah, I have things
that are nice because I don’t mess with my
money in my business and I have other income streams
that make me money that can pay off
the things that I like But either way, I don’t mess
with the money in my business I’m actually
super, super lean You know, that’s And I get it, I’m kinda
ranting right now but the reason why selling
on Amazon works so well is because selling online you can keep your
expenses so low that you can out beat
offline markets That, the reason why,
you know Let me take
this right here this globe may not
make any money And I know why,
’cause this globe is actually it’s sold on Amazon This globe won’t make
any money in most stores because it costs them way
too much in their expenses for their lease for their employees And the biggest
cost in a business is employees And the biggest cost with some
Amazon sellers going down is their warehouse
and employees So let’s think about this,
you wanna get a warehouse And where a lot of people get,
start to get into warehouses is when they start to do
over $10,000 per month ‘Cause they see that,
they realize, okay You know, a warehouse And they sometimes think
a warehouse costs less than that They say, oh, I can just go pay
$3,000 a month for a warehouse and let’s call it good No, you need employees
to operate that You gotta put a
security deposit down You gotta pay
a bunch of other fees You gotta keep the heat on
or whatever it is, right? So let’s say just, you’re
paying $10,000 a month for employees
and a warehouse And let’s say your doing
$100,000 on gross sales making $25,000 Or, let’s say for this, making $30,000
to keep the numbers simple You’re making $30,000 of profit,
$100,00 gross sales And let’s say you’re investing $80,000
of inventory every single month So you’re maybe
making a 40% ROI Or no, 80 Let’s make math
really simple Let’s say you’re investing
$90,000 every single month You’re getting $30,000,
so you’re making a 30% 33% return on investment So now, if you have to go shell out
$10,000 a month for a warehouse you now have $80,000
a month to invest So now, your gross sales
are probably gonna go down by at least
15% right away because, let’s think
of the numbers If you get a 10% lower Like, let’s say you’re
buying a product for $10 and selling it for whatever If you get a
10% lower cost your ROI’s actually gonna be
about an extra 14% higher That may seem like
way over your head But pretty much
what happens is now the opportunity cost of you
investing into that warehouse You’re not losing
on so much capital That hurts your overall what
you put into your business Now let me get
into my expenses So, on InventoryLabs That’s the software
I’m using, InventoryLabs And the reason why I love
InventoryLabs is because they literally get you
down to the penny So if I get refunds
on Amazon If I get reimbursements,
they go back on If I get shipping
to Amazon fees or any other miscellaneous
fees that are in there The only thing that’s
not in there is gonna be employees, and warehousing,
and stuff like that So, I have other income
streams that I sell online and all of my
employees are assets And my storage where Actually, I ship
stuff out for FBM Which, I don’t even
have to do FBM, but I do is actually an asset So I think this is
a little better idea I actually, my business,
we actually have a duplex that we rent out And we actually
get more cash flow than the mortgage
on the duplex It’s, we get about
like $500 profit But then, we actually have
a little storage place in the back that’s just like
a little guest home But we don’t rent that out,
we just have it Literally, it’s like 700 square feet,
fits all the products we need to I have employees that
come there every single day and ship things out So think about it
right there Okay, first off, my warehouse,
whatever you wanna call it is making me $500 a month
’cause it’s an asset And then, so it’s costing me
nothing to get that And my employees also
fulfill things for eBay fulfill things
on my own site And, so I actually
looked at the numbers they’re pretty much
costing us $0 because within that account
right there with all the other
things that are going on It’s pretty much like 50¢,
$1 per hour what they’re technically like, getting
into expenses with that So either way, the employees
are pretty much costing nothing because we’re using
them for other assets And the warehouse is costing us
also nothing because we’re literally got a mortgage on to it,
we’re renting out the duplex and the storage
is in the back So, recapping this video The best things you want
to get an advice with this is keep your expenses
extremely low A lot of people think they need
to go partner up with other people you know, pay for employees,
do this and that Figure out a way to have your
storage and your employees if you need to use ’em You know, you don’t even need to
use employees and storage at all Like that’s the first thing
you wanna do, is literally never even use
employees and storage because you can have
Amazon do it all Now, I sell on eBay,
I sell on my own website We’re doing
FBM on Amazon we’re selling on
other marketplaces that I share in
some of my trainings So we’re trying to
make those into assets So again, if you’re trying to
get a warehouse, don’t get it It’s gonna really
hurt your profits I showed you my numbers,
over $103,000 of profit off that one account Because we have other
accounts that are doing very well numbers
as well That’s not really the
bulk of our business And yeah,
that is about it If you want to learn
how to do Amazon A to Z check out my book,
The Secrets to Selling on Amazon You can actually click
the link down below And if you like this video,
if you learned something about this If you’re making money and
wanna make money on Amazon subscribe to this channel Comment down below with
any questions, and give it a like But then also check out The Secrets
to Selling on Amazon down below

14 thoughts on “The PROFIT I KEPT from $305,000 in Amazon FBA Sales

  1. Hey bro it's been forever got my Amazon account back from years banned.. I think I'm ready it has like 100+ positive feedback and all lol

  2. Beau, I have been watching your videos for awhile now, I am VERY intrested in your system and course. I get a feeling watching your videos, like this one, that you are a very genuine person who just wants to help people get their business started. The problem I am having right now is getting started, the price scares me. Can you please help create a way to pay for your course over a period of time. The 3 payments of $999 will kill me as a college student, but $100 over 20 months with a initial down payment, I believe would get way more people in the door. I 100% plan on taking your course but in due time lol. Thanks again!

  3. Hey Beau, if I have no physical presence in the US, must I ship the products to a third party prep center before the supplier can issue the finalized invoice to ungate my brands? From what I see in your public fb group they are saying that the products must be shipped before the suppliers are willing to issue the finalized invoice.

  4. I agree about keeping expenses low. I only pay $500 a month for rent. But I have a big 5 bay car garage in the back yard that I use as my Ebay warehouse with no employees.

  5. Hi Beau, i really want to start this business, however i dont have the funds for that, do you offer some kind of funding ? If so what do i need to have to qualify for that funding and whats the amount you could fund ? Would rly appreciate your response

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