This is a post by Amazon FBA seller, Devan Jordan
I would like to think that we as sellers are experienced enough to have learnt a lot and be able to advise on problems, we have come across during the dream time for any seller, retailer or shop in general, Q4. We always say that during these three months you will learn the most as a seller. It’s where the biggest issues and the biggest positives arise. We all make a lot of money but some of us might not be taking the correct preparation.
The main things we have learnt during our time in multiple Q4s is to go big, but not too big, to ensure you are prepared for the January slump and to set targets for each category. Something we learnt this year just gone is something we will take forward with us for every year after.
We spent our money incorrectly this month and probably prepared for January too much.
So, I’m going to explain those three points and tell you what you can do to make sure you don’t make the mistakes that we did and ultimately give you the best chance at making Q4 2019 a successful one!
1. BIG! but not too big
A lot of you will already know that Christmas time is toys season, and this means you need to be spending a lot of money on toys if you have it. You need to invest most of the money you’ve earned to spread it across lots of lines that are going to sell within the Christmas period
. Save some for my next point. You do however need to be very careful that you don’t buy too much of each item because you then could end up being stuck with stock when toy season ends, and this can be disastrous.
You want to ensure you are looking at data correctly, making sure you check last year’s data as well as the previous 1-3 months and then take all the factors you have learnt in sourcing to buy the correct amount. You don’t want to be scared of not buying a large quantity because you could end up selling out quick when you go to buy the item again but again don’t be stupid. Risk comes with reward but don’t be an idiot!
Data you can look at to see how an item has performed, Keepa.
2. January Prep
The next thing you need to do is ensure you are prepared for January. This means not spending ALL your money on toys because if you do, once Christmas day is done you will be left with an inventory full of stock that is no longer wanted and if it is, it is wanted at a much lower price.
To take the right preparation you need to ensure you are pumping your money into toys from around September to the end of November then you want to be putting some money into other categories which I’m going to talk about in a minute.
Once you’ve got the money to spend on the other categories you need to get shipments sent in time for Christmas so that UPS and Amazon can process the shipments and have the products ready for after Christmas day when you won’t be shipping.
Finally, if you have the right preparations this allows you to have a well-earned rest. If you are like me, Christmas time is the only chunk of time I get off in the whole year. I like to do some form of work every single day apart from around Christmas so having the right preparation allows you to relax.
3. Splitting Money into Multiple Categories
In relation to the last point, it is important to spread your money across categories so that when that time does come where the toy season is over you can still sell and make money without having to panic buy products in different categories.
You want to be focusing like I said before on toys between September and Mid-December (the 10th or so) and then from mid-December up until the last shipping day for ups you want to be getting grocery, home and kitchen and beauty products in.
If you can find any fitness products that are profitable ensure these are in before Christmas as when people have finished binging, they will want these products and will pay whatever for them. You need to get yourself back into consumer mode and think what you would want to buy after Christmas. You aren’t going to be wanting toys and gift sets you are wanting new kitchenware and new beauty products to try.
If you take these three tips you will be more than fine when it comes to Q1. You will thrive during Q4 and will be able to rest over the Christmas period and will be prepared for the slump of January.
About the author:
My name is Devan and I run a six-figure Amazon FBA business. I dropped out of university and the normal route of society to follow my dream of being my own boss and now at the age of 21, within less than a year of selling on Amazon, I have achieved that. I now not only decide what I do but I run a team which helps keep my Amazon business running from day to day. For behind the scenes footage and other Amazon help, check out my YouTube channel, Instagram and blog, www.devanjordanfba.com.
Read more from this author: