If you want to sell on Amazon you need three ingredients: capital, products and processes. We still don’t have everything we need to really grow at Amazon.
I don’t know yet if we will break the 400k barrier in 2020. I mean billing on Amazon. At the end of the day it really won’t matter if we will be above or below. This year has taught us what is possible if we increase one of the three essential factors in the Amazon equation: capital. We already have the product. We know what works because we have been selling for more than 6 years. I have finally been able to show that this work is profitable.
Now that I have seen the possibilities I want to go for more. In 2021 I see a turnover of 800k possible. It is a beautiful but unrealistic figure. We are not yet ready for it. We loose in all three fields.
I’ve already done the quick calculation for you. To bill 800k you need 400k investment. Actually a little less but it is about simplifying. From 800k they leave 200k of profit. 400k I don’t have anywhere near. That is why the idea of inviting outside investors came up. A 12-18 month investment in Lego can easily generate an ROI of 20-40%. In these figures I have already subtracted the commission that I would charge for my work. To invite investors beyond my brothers, I need a platform that brings transparency to the process. It is an investment that I have to make.
Limited product stock
The sales this year I have not taken them with Lego. In reality Lego has only been 5% of the turnover. The thing about this other product is that the stock is limited. I have to start buying units from January. Also, I am not sure if I can sell this product forever because I am not getting it through the distribution channel but through stores for the final consumer. That is why I am now betting so much on Lego. If I drop my main product, I will be able to replace what I have completely. The downside is that I also need Legos in bulk and “mature”. The 12-month period could be short. Sometimes a product takes longer to go up in price.
Non-existent and inefficient processes
Although we comply with the first two points, this one is still missing. I give you an example. As of today we do not count the entry and purchase of merchandise with a software. Until last year it was not necessary because we controlled the quantities. Right now purchases have skyrocketed so much that we need more control of what comes in and what goes out and more so considering that if we bring investors we have to be able to assign it precisely to a person. I have a budget on the table of 20,000 euros that would provide a solution to the software part that would be the basis for improving processes. I am afraid to invest so much money but if we want to grow there will be no alternatives.
It seems like a long time until Christmas 2021 but I know from experience that time flies. I have to put the batteries and make quick decisions if I want to have the possibility of reaching the 800k figure. It will be fun…