SO 2020 was the first year since 1997 I didn't do any contract work or IT work WHATSOEVER. Nothing. Nobody paid me to do stuff, I didn't job out my skills, knowledge etc. I didnt have to work with theiving bastards who steal your networks, no managers, no techies, nobody.
It wasn't the idea, I was going to do some, but 2020 went a bit weird in February a month after I decided to chance my luck selling on Amazon.
And here's the results (they're not eye watering, they're not outstanding, they're not up there with my Is it Too Late career but they are different, plus I got to stay at home, home school my son when I could, and basically not have to deal with any of the rest of you pain in the arses out there in IT world).
This is a post from My FaceBook group where I work with a number of other sellers on building our businesses.
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Just to share with you guys as I am also learning all the time!
Just getting my accounts sorted for last year and it appears I made a profit dammit!
Turned over £409k turnover(exc VAT),COG circa £144k. Amazon took £151,000 in fees. WOW! Net profit on the books was £75k
Doesn't include any cashbacks / gift cards / sneaky cash deals or Ebay that goes in the backend. That comes to around £8000-£10000 at the back end.
Margin - At least a £100k of that turnover was at break even or a slight loss from some bad buys but they dont show in last years figures & those have through into Q1. Because I had cash in Q1, I've bought too much, so
Q1 is showing as a loss of £12k so far! Due to poor margin / loss making stuff from Q4 and I have a £5k VAT rebate due for Q1 as Ive spent more than I sold & I have increased my storage costs but reduced my ROI!
All the profit is now tied up in stock for Q2/Q3 & Q4!
So annoyingly I now have Corporation Tax to pay which ideally I dont want. I haven't put any money aside for Pensions & didn't put enough salary through to reduce the liability. You would think after all these years doing Ltd companies I would manage this better.
So looks like I was doing well, but complacency and a lack of looking at my numbers means I'm going to be running breakeven over the first half of this year, but should have stuff later for Q4. I may have had a good run, but I think I've then done a Hold, then Fold strategy this last Q. Profits are weakening over the first half of the year as lockdown finishes, but the expected squeeze for Q3/Q4 means that profits will be higher in the year end when the tulip hits the fan.
So all in all, 1/2 million sales the first full year, almost 20% return. Plenty of opportunity and things to learn going forward
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I've been in hospital twice so far this year & schooling has been a nightmare, BUT I'm doing something different Again, and haven't even scratched the surface on this one.
So if you're interested in Amazon / e-commerce selling let me know and I'll hook you up with the right groups for you to learn about it, if you want a change.
MF
It wasn't the idea, I was going to do some, but 2020 went a bit weird in February a month after I decided to chance my luck selling on Amazon.
And here's the results (they're not eye watering, they're not outstanding, they're not up there with my Is it Too Late career but they are different, plus I got to stay at home, home school my son when I could, and basically not have to deal with any of the rest of you pain in the arses out there in IT world).
This is a post from My FaceBook group where I work with a number of other sellers on building our businesses.
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Just to share with you guys as I am also learning all the time!
Just getting my accounts sorted for last year and it appears I made a profit dammit!
Turned over £409k turnover(exc VAT),COG circa £144k. Amazon took £151,000 in fees. WOW! Net profit on the books was £75k
Doesn't include any cashbacks / gift cards / sneaky cash deals or Ebay that goes in the backend. That comes to around £8000-£10000 at the back end.
Margin - At least a £100k of that turnover was at break even or a slight loss from some bad buys but they dont show in last years figures & those have through into Q1. Because I had cash in Q1, I've bought too much, so
Q1 is showing as a loss of £12k so far! Due to poor margin / loss making stuff from Q4 and I have a £5k VAT rebate due for Q1 as Ive spent more than I sold & I have increased my storage costs but reduced my ROI!
All the profit is now tied up in stock for Q2/Q3 & Q4!
So annoyingly I now have Corporation Tax to pay which ideally I dont want. I haven't put any money aside for Pensions & didn't put enough salary through to reduce the liability. You would think after all these years doing Ltd companies I would manage this better.
So looks like I was doing well, but complacency and a lack of looking at my numbers means I'm going to be running breakeven over the first half of this year, but should have stuff later for Q4. I may have had a good run, but I think I've then done a Hold, then Fold strategy this last Q. Profits are weakening over the first half of the year as lockdown finishes, but the expected squeeze for Q3/Q4 means that profits will be higher in the year end when the tulip hits the fan.
So all in all, 1/2 million sales the first full year, almost 20% return. Plenty of opportunity and things to learn going forward
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
I've been in hospital twice so far this year & schooling has been a nightmare, BUT I'm doing something different Again, and haven't even scratched the surface on this one.
So if you're interested in Amazon / e-commerce selling let me know and I'll hook you up with the right groups for you to learn about it, if you want a change.
MF
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