• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

2021 MF Update Contractor 2 Shop 2 Contractor 2 Perm 2 Contractor 2 Director 2 Amazon

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    2021 MF Update Contractor 2 Shop 2 Contractor 2 Perm 2 Contractor 2 Director 2 Amazon

    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.

    -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

    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












    What happens in General, stays in General.
    You know what they say about assumptions!

    #2
    Originally posted by MarillionFan View Post
    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.


    (I seem to remember you didn't do much IT stuff that year either )
    His heart is in the right place - shame we can't say the same about his brain...

    Comment


      #3
      Nice, fat Amazon profit margins - no wonder that company is going places: taking a cut whilst free sales reps work their arses off and take all the risks with stock
      Last edited by AtW; 29 April 2021, 20:17.

      Comment


        #4
        Not for me personally (attention span far too short), but given this is your first year that's not too shabby A lot of companies struggle in the early years whilst they learn their market, skills etc, so definitely a banana year

        Be really interested in the same report next year, now you've gone through that first year learning curve. Onwards and upwards.
        I am what I drink, and I'm a bitter man

        Comment


          #5
          MF, are you reinvesting all your dirty spekulant profits into sledges?

          Comment


            #6
            Originally posted by AtW View Post
            Nice, at Amazon profit margins - no wonder that company is going places: taking a cut whilst free sales reps work their arses off and take all the risks with stock
            Do you know AtW and that's the rub! They take a cut WHATEVER! If you profitable they take a cut, if they sell it themselves they're making money and if they buy it cheaper and you have to sell at a loss, they take a CUT!

            This crap about them being a 'TECH' company is bollocks. They're making money hand over fist.

            <CAVEAT>

            They have done something which is quite Illegal regarding EU VAT. They've been collecting VAT off Sellers & their fees while based in Luxembourg. Their own T&C state that sellers don't have to pay it, but they collected it and by our estimate they are sitting on BILLIONS of unpaid tax they've taken illegally off sellers.

            It's not known about in the press (YET) but will be in due course. Should be a PPC type scandal.

            <CAVEAT>
            What happens in General, stays in General.
            You know what they say about assumptions!

            Comment


              #7
              Originally posted by AtW View Post
              MF, are you reinvesting all your dirty spekulant profits into sledges?
              Goodness me AtW. It's the summer. It's all in swimming pools and hot tubs :-)

              What happens in General, stays in General.
              You know what they say about assumptions!

              Comment


                #8
                Originally posted by MarillionFan View Post

                Goodness me AtW. It's the summer. It's all in swimming pools and hot tubs :-)
                This is why he's not running an Amazon shop...

                Comment


                  #9
                  Not bad results for one of these businesses Sir.
                  You have done well
                  Good luck for the rest of the year. I do mean that
                  Former IPSE member
                  My Website

                  Comment


                    #10
                    Originally posted by MarillionFan View Post
                    Do you know AtW and that's the rub! They take a cut WHATEVER! If you profitable they take a cut, if they sell it themselves they're making money and if they buy it cheaper and you have to sell at a loss, they take a CUT!
                    Noice model, innit?

                    Originally posted by MarillionFan View Post
                    This crap about them being a 'TECH' company is bollocks. They're making money hand over fist.
                    I think AWS makes them most profits, well, that and mugs like you who think they can beat Bezos at his own game.

                    Comment

                    Working...
                    X