How much do you need to make on Amazon as a business to make it profitable?
Last year we made over 300,000 euros with a recent Amazon account. It’s not new, but it hasn’t been around for a long time either. It’s the third year. To give you a quick answer, this turnover hasn’t been enough.
The Amazon one-person business
Let’s say you do everything yourself. Shipping, a lot of the accounting, purchasing, and you’re not Pan-Eu, you have a light cost structure. Even so, you’re going to need liquidity all the time to make the sales ball bigger.
In this case, with an annual turnover of 350,000-400,000, you could live off Amazon. Not a lot, but just right. It all depends, as always, on your real costs cambodia phone number library and the margin of your product. If you have an ROI and margin above average (let’s say a margin > 30% and an ROI > 100%) then you’ll live less just, but it shouldn’t be crazy either.
The business with structure
Our business is a little different because our ambitions when customers share your content are different too. To be at a break-even point we have to have a turnover of 75,000-80,000 euros per month. These are not small figures, at least for us. In total, with two accounts and companies, we are now at 110,000 euros.
In this case, with an annual turnover of 350,000-400,000, you could live off Amazon. Not a lot, but just right. It all depends, as always, on your real costs and the margin fans data of your product. If you have an ROI and margin above average (let’s say a margin > 30% and an ROI > 100%) then you’ll live less just, but it shouldn’t be crazy either.
We have two warehouses
Two offices, staff, managers, Pan-Eu, own brands, etc. The positive part is that we are now at an optimal cost point. We have what we need to continue growing. In fact, we are already doubling the turnover of the previous year. These are good figures, but still small for e-commerce. You have to move a lot of product for this to make sense.
For this business to be profitable for us, we must far exceed a turnover of 1,000,000 euros this year. These are the minimum figures we are considering this year. Depending on the access to financing we can have this year, we can even opt for much higher figures.
