The Truth About My 7-Figure Amazon FBA Profits (You’ll Be Shocked)

So I tried Amazon FBA for 30 days and I'm gonna give you the real results. I'm not gonna sugarcoat anything. You're gonna see my P&L statement, every single expense when it comes to Amazon FBA, my freight costs, my actual product costs, because I want to be an open book when it comes to Amazon FBA private label. And on this YouTube channel, I always share tips and tricks, but it's also important to actually know that you're getting advice from someone that's truly in the trenches when it comes to Amazon FBA private label, building out a brand that in the future you can go ahead and sell for life-changing amounts of money. But I do want to preface this by saying that I have been doing Amazon FBA since 2018. So in this video, I'm not going to go over basic stuff like GS1 barcodes, getting product photography done, getting labels done, because at the end of the day, when you are already in the trenches of Amazon FBA, those are one-time expenses at the very beginning. All of that is important, setting up an S corporation, going ahead and getting, you know, uh, Amazon seller account for every single month. But those are just the basic types of information. I want you to know that if you're currently selling on Amazon FBA or are thinking of selling on Amazon FBA, this is basically what it looks like from a month-to-month basis. Once you've already have an established brand going ahead and growing, getting growing pains of cash flow issues, getting inventory from your manufacturer, So without further ado, let me go ahead and show you my actual numbers with Amazon FBA. So we're going to go over May's numbers, right? This is just last month and this is my seller dashboard. So you guys know that this is actually true and I'm going to go ahead and refresh it. So you guys know it's true from May 1st to May 31st. That is a 30-day sample size of just my most recent numbers. And you can also see this is not Photoshopped whatsoever because these are Amazon Business Insights. You can see that in May, Your order product sales is 427,000. That matches up with that number right here. And you can see month over month and year over year growth of 86%. But you guys are here for the actual numbers because a lot of people on YouTube, on TikTok, on Instagram, which again, if you guys do not follow me on Instagram, that is my Instagram handle right up there. Go ahead and give me a follow on Instagram. And if you guys are interested in running a profitable Amazon FBA business, DM me the word brand, right? Regardless if you're a beginner looking to scale or looking to exit your Amazon FBA business, go ahead and DM me the word brand. So without further ado, let's actually get to why you guys are watching this video. What does an Amazon FBA seller really take home? Because people go ahead and show off these revenue figures, but those revenue figures do not exactly equal profit. Whatsoever. So again, I am an open book and I'm about to share exactly how much I go ahead and make. And here is my seller board, right? The seller board goes ahead and gives you a detailed look with when it comes to Amazon FBA. And we're going to go over basically every single type of expense. And the first one going ahead and being, what are my actual sales? So you guys can see my sales on Amazon FBA in the month of May, as you guys already know, was right around $427,000. And how many units was that? I sold roughly 5,800 units, which again, in order to go ahead and get to these figures per month, you have to have the inventory to do so. And there is a major flaw that happened to me in June now where I ran out of stock on a lot of inventory, which again, it happens to beginner sellers. It happens to going ahead and sellers that are scaling their actual business. And it also happens to million-dollar brands, just like Maverick right over here. Right. And again, one other thing to go ahead and mention, I own these brands specifically. I am not an agency. I'm actually a brand builder. Right. So these are actually my brands that I sell on Amazon FBA. So let's go over promos. Right. So I always like to run a 5% coupon code, anywhere between 5 to 10% on all of my products. Why do I do this? Because it helps conversion rate. So even though my expense was $10,000 based on promos itself in a single month, this went ahead and helps me with ranking, getting more organic ranking. And when I'm running ads, it also helps with conversion rate. So this is a flywheel effect on how the algorithm on Amazon works. The more your conversion rate is actually higher than your competition, the more you're ranked organically, the more organic sales you go ahead and get, and the more sales in general with sponsored ads. It goes ahead and creates a flywheel effect where you're getting ranked for way more keywords that have higher search volumes and you get rewarded. So I will spend that $10,000 every single time. So advertising is the second portion of it, right? When I get to these numbers, $95,000 in a single month, it's absolutely mind-blowing. And you guys, whatever stage that you're at, whether you are beginner or going ahead and scaling to $100,000 a month, or scaling to these numbers or even past these numbers, it's all attainable, right? Like if you guys would have told me in 2018 when I first got started that I'm going to spend $100,000 in just advertising, I would have thought that I would be crazy to go ahead and even think about those type of numbers. But here I am, you know, 6 years or 7 years later getting these actual numbers. And it just goes to show you that if you want to get to $420,000 in sales, one, it takes the inventory, but it also takes the money to actually scale to those numbers. And I'll gladly again spend spend these amounts of money because I already know that if I spend $95,000, it's going to give me $427,000 in sales. And we'll get to profit in just a second. So when you get to these level of size, you're obviously going to get some refunds, especially on Amazon where they're refund friendly, right? For any reason that you want to go ahead and refund an item, unless it's like supplements or something you ingest or going ahead and wear like underwear, they're very lenient as far as when it comes to returning your item. Which is fine, right? That's the reason why people go ahead and purchase on Amazon because it's very easy to go ahead and return those items. So it allows you to actually get more sales as well. But in the month of May alone, I had close to $20,000 in basically refund costs. And these are broken down into 2 different buckets, right? Sometimes you're able to resell these items. So if Amazon goes ahead and looks at these items and says that they're going ahead and being able to resell on Amazon, You can just put it back into your inventory, back into going ahead and trying to sell these items. But for the month of May, that's basically how it looked like. And we'll kind of break down how the refunds look like, because it's very important. Refunds is just one aspect of going ahead and selling on Amazon, but there's a bunch of different things, right? Like the refunded amount are actually $24,000. Customer per unit cost of that as well. Refunded commissions. That's a good thing, right? Even though you get these return customers and they've purchased it, Because they went ahead and returned the item, obviously Amazon's gonna go ahead and refund the selling fees. And we'll get to Amazon fees in a second, right? You have promotion fees that I went ahead and spent as well. You have value of the returned items. So obviously this is gonna be sellable items that get returned back into inventory that people are able to purchase over again. Refunded referral fee, like I mentioned before, that referral fee of 15%. And let's get to Amazon fees because you guys already see it right there. Amazon fees is a a good chunk of my money. And these are just fees. This is not advertising. This is just the actual fee to sell on Amazon and ship to a customer. And you're going to see other fees as well as far as storage costs and whatnot. But let me go ahead and move it right up here. So we're going to go through every single line item when it comes to Amazon fees, because again, $123,000 in fees is kind of ludicrous, right? But what does that really include when it comes to selling on Amazon, which is very important, right? The first one being that referral fee, 15%. Every time my item sells on Amazon's platform, I owe them 15% of every single sale. And 15% to a lot of people might seem like a very steep price, but Amazon does a bunch of different advertising to get people to get onto their site, convert onto their site, because people that go on Amazon are there to actually purchase a product. So this is low-hanging fruit, unlike Facebook or TikTok or any other social media type of platform. Yes, you can go ahead and advertise on those platforms, but people are there to go ahead and stroll on their phone, scroll on their phone. They're not there to actually purchase. When they go on Amazon, they're actually there to purchase that item. So that's number 15% referral fee. And then we have that per unit fee, right? Based on them picking, packing, and shipping to a customer, I spent $54,000 on just picking and packing and shipping to a customer. Which again, this is just the cost of doing business. If I didn't sell on Amazon and I was selling on my Shopify store, I still had to pay for shipping itself, right? So that's there. Long-term storage fees. So this is one mistake that I've done over the past years is going ahead and launching a bunch of different products, right? And sometimes what happens when you try and launch a bunch of different products, one, you spend a lot of money on inventory, but two is that a lot of the times it's very hard to track how long they've actually been on Amazon, right? So I've sold, Numerous products. We're talking about 20+ SKUs last year because, you know, that's what I was focused on, trying to find another home run winning product. And it bit me in the ass here in May where I had to spend $2,000 in just long-term storage fees. This is not just storage fees on Amazon just to store my items there. This is just on aging inventory, right? This is the regular storage fee that I went ahead and cost. So I actually spent more on long-term storage fees on Amazon than I did on just regular storage fees. Um, when it comes to my actual product. So that's one thing to consider. Always know exactly what inventory is in Amazon and how long it's been there, because basically this long-term storage fee could have been avoided. I could have went ahead and took out all of this inventory or destroyed it myself, and I wouldn't have to pay $2,000, which again, you live and you learn. We also have that coupon redemption fee, right? So I mentioned I do promos. I do 5% to 10% coupon codes. So I spent a total of $1,500 on just redeeming those actual coupons, right? We have liquidation fees. So I did liquidate a lot of this inventory that I mentioned before. I launched a lot of different products in 2024. A lot of those products were duds, and I went ahead and was able to go ahead and liquidate close to $1,100 or a little bit more than $1,100 in liquidation broker fees, right? FBA removal fees as well. You can see there inbound transportation. So in the month of May, I obviously went ahead and had some inventory stored here in my garage. I went ahead and shipped that into Amazon. It's very minimal. Right? It's only a little bit of deals. I also run Lightning Deals. So you can see $300. So all in all, right, there's all these different fees. I'm not going to go over every single one of them, but you can see all of that totals up to Amazon fees of $123,000. So after that, you can see that those are most of the fees, right? Then after that, we have the cost of goods sold. So let's go ahead and let me move myself out the way just a little bit here so you guys can go ahead and see and bear with me. I don't like to make any edits in my videos. 'Cause I wanna be as transparent as possible. And I really don't have the time to edit these actual videos. So cost of goods sold is the next one. This is actually producing the products and getting them shipped into Amazon. So those 2 different fees, right? COGS is 2 different fees as far as manufacturing costs and transportation costs, which is freight forwarding, right? For all of these products, 5,848 of them, I spent close to $85,000 in just COGS and basic cost of goods sold. So all in all, after all of these actual fees, I made a grand total of $93,000 on Amazon. So let's kind of break this thing down. So you can see my refund rate is close to 7%, right? As far as refunds are concerned when it comes to Amazon, which again, I do sell in a niche that people are easily able to go ahead and return these actual items. And it's kind of more of an accessory piece that people actually wear. So a 7% Refund rate is not too bad. You can also see real ACOS, which is also TACOS, right? Total advertising cost of sales. So this basically means that based on how much I spent on advertising divided by my total sales, I have around a 22% TACOS, which again, it's a little higher side as far as me spending on advertising, but I'll take that all day long at a 22% profit margin, which is really all that matters. Basically meaning that yes, I'm spending a lot on advertising, but I'm also getting organic sales as well. And I'm still having a 22% profit margin. So this means that I could technically go ahead and lower my advertising costs and drive up my margin itself, but it's not really worth it to me at this point in time. I make enough of a healthy percent profit margin where I have over 100% return on my money. So again, this is all the information I'm going ahead and giving you guys. I'm very transparent as far as all these Amazon fees. And again, these numbers are attainable because I've made a lot of mistakes when it comes to Amazon FBA. And if I basically knew what I knew now, I know that I could go ahead and accomplish these goals in half the actual time. So right now I currently own Maverick. I still own Factory Lace. I just purchased an Amazon FBA brand, a supplements brand by the name of NutriLab. So I'm really excited to go ahead and kind of show you the different tips and tricks when it actually comes to scaling your Amazon FBA business, because this model works. It gives me the freedom to go ahead and have that money freedom, which obviously making $95,000 in a single month is, you know, give me that money freedom to go ahead and basically do whatever I want. But more importantly, it gives me the time freedom, right? Being able to not be stuck at a 9-to-5 job at this desk every single day. It gives me the time freedom to go ahead and be able to spend time with people that matter the most, which is family, my kids. I have a 2-year-old and a 1-year-old, and I will go ahead and give up anything to be able to go ahead and be there with them at these crucial times whenever I do want, right? And then more importantly, that location freedom. I don't necessarily need to go ahead and be chained down to a desk in a certain city. I have the location freedom to work wherever I want, which again, if you're looking at Amazon FBA or you're currently in Amazon FBA, that might be the most important thing there. So I reiterate, if you guys are interested, and going ahead and either starting, scaling, or getting ready to exit Amazon FBA businesses. Because I mentioned I'm buying new— I just bought Nudity Lab. I bought Maverick. I went ahead and bought Relax Support. I'm currently going ahead and trying to sell one of my Amazon FBA businesses as well. Regardless of where you are in your Amazon FBA journey, I'm there to help. So follow me on IG, go ahead and DM me the word brand if you guys are serious with working with me one-on-one. But what are your guys' thoughts here? What are expenses that you didn't think were this high? Because as you can see, I spent a lot of money every single month when it comes to Amazon FBA? I would love to hear in the comments below, but until next time, guys, peace.