My profit I kept from $305,000 in 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
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