Compare January 2022 Amazon Sales To January 2023...
Part of growing a sustainable online retail business in being CLEAR on your numbers, and knowing how to grow your sales while being able to sustain your growth.
So let's discuss how you can do this:
1- Know Your KPI's
Keep Performance Indicators will help you know how much money you can spend and how much money you can make.
For example: We know that a staff member at Wholesale Universe can upload X amount of units per day into Amazon. We also know that when that staff member uploads X number of units per day into Amazon, it equals X amount of sales per day/week/month.
We were able to calculate this number by first starting with 1 person uploading into Amazon for 90 days, and taking their number of units uploaded and doing the math against how many sales were made.
So... We are able to take the overall amount of sales made per month, subtract the cost of inventory, subtract the cost of labor, subtract the cost of returns, subtract the cost of taxes, and then we come out with how much a single staff member who uploads into Amazon for 40 hours per week is able to bring us in profit to our Amazon account.
Once we became clear on these numbers, and keeping the same sales strategy, we then began to increase our upload team by 1-2 people every 1-2 months.
2- Don't Outgrow Yourself
Taking the information above, it sounds good to just go hire 20 people immediately and have them all upload inventory into Amazon.
Though it sounds great in theory, it's a bad idea to go from 1 to 20 people, or even from 5 to 20 people.. Here's why..
You have to take into account that products will need to be uploaded and go live on Amazon before they sale. All of that takes labor, which costs you money.
You also need to take into account that Amazon isn't going to pay you out everyday.. You will get paid out every 2 weeks, and there is a chunk of your payout that needs to go into buying MORE inventory to continue scaling.
Not to mention the learning curve that will come with having to teach a new employee how to correctly upload your inventory into Amazon..
Everyone that you hire isn't going to stick around, so you will have members of your team that you hire who don't last very long.
If they don't last long and they don't produce, that's essentially wasted money on the companies part, which is at times a cost of doing business.
Hiring too many people at once to upload products will not only cause you to drain your cash resources, but will also cause backups in other parts of your operations as well.
For example: When you had 1 uploader sending products to Amazon, who was storing, picking and shipping inventory as it sold? How much time did that take? How many units could they ship in a day?
This is another important KPI that you will need to know, and incorporate into your growth.
With this type of immediate growth, there will also need to be an equal amount of growth in other areas of your company.
As you already know, if you can't meet the demand of shipping out inventory, your seller metrics will take a hit, which could cause a suspension or deactivation of your account.
For these reasons, we recommend to take a little bit slower approach to hiring to ensure you are clear on your numbers and don't outgrow yourself OUT of business.
Here's a quick video we did on knowing when to hire your next employee..
3- Set An Attainable Goal
When we first started in business, the goals we set were often unrealistic, not to mention unattainable through proof of numbers.
Instead of saying that we wanted to increase by 30%-50% per quarter, we said we wanted to be making $10,000,000,000,000 (exagerated) more by next year.
Where do these targets and goals come from that people set?
There has to be an attainable and realistic target and goal set, and it also has to be backed up by what you KNOW to be true.
So when you're clear on your numbers, know your KPI's, and don't outgrow yourself out of business, you can set goals that you KNOW will be met.
We know based on our numbers that we can *theoretically double our sales every 6 months or less if we follow a proven formula.
Here's how the year ended for us..
We made $1.17 Million in sales on Amazon.. By the end of 2023, with the formula we have for growth, we plan on pushing at least $2.35 Million in sales (if not more).
What've we've learned is to trust the process, follow a plan that works, and always look for other ways to build the momentum by fine tuning our in house processes and procedures.
We're not looking to go from $1MM to $10MM overnight.. That can put too much strain on yourself and your business, and cause you to fail.
Our chart for this next year should look similar to this:
REMEMBER:
This isn't a race, and there is no finish line.
The only person you must compete against each day is YOU!
Grow your business at a pace you can handle.
If you want help learning how to sell like this on Amazon, we can teach you!
Learn To Sell Like A Pro👉 Click Here
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