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TIE #037: How I Made $42,453 in Profit on Amazon in August (while hardly working)
Back to school is the best.
Apparently you hate money. If you didn’t, you’d be using Rakuten every time you shop on websites like Walmart and Target to save money.
They have paid me over $9,400 for things I was already going to buy for my one-person business (click here for proof).
They are also the reason this post is free to read. Sign up here and get $30 for free after your first use.
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I have been documenting how much profit my personal Amazon business makes in this newsletter for over 2 years now.
While running an Amazon business was never a dream of mine, it is what laid the foundation for me to leave my full-time job and then reach financial freedom at a young age.
In 2023, an Amazon business is still the best option if you want to accomplish something similar.
This post is #32 of this series, you can read post #31 here.
My Amazon business has three branches:
Branch 1: Non-fiction book arbitrage (read here if you do not know what this is)
Branch 2: LEGO investment sales (read here if you do not know what this is)
Branch 3: Other random online arbitrage
Depending on the time of year, they all rise and fall independently from each other.
The common theme between them all is efficiency. I aim for higher than average profit margin while aiming to work as little as possible.
August was 99.9% sales from book arbitrage and ended up at the following:
Total Sales: $129,910.33
Items Sold: 1,534
Cost of Goods + Fees: $87,457.03
Total Profit: $42,453.30
Hours Worked: ~15-18
Average Profit Per Item: $27.65
Total Profit for 2023: $114,264.78
As I warned last month, the amount of revenue this business experiences during August is higher than almost any other month.
In this case, it was well over 5x as high as some of the early summer months.
We’re going to do something a little different in this profit & loss report. With numbers this high, I feel like I owe readers more transparent proof that this is real.
Once again, this is something every Amazon guru refused to share.
You’ve already seen the revenue for August, so let’s take a look at the cost of goods.
Here are my American Express Business Prime charge totals (the only card I use on Amazon and what I used to buy most of the books sold):
Here are my June numbers for one of my Capital One Spark cards (used for eBay only, I did not buy on eBay in July as inventory dries up there much quicker):
Total Cost of Goods Sold: $56,447.43
The total fees paid were a touch above $30,000, which is right in line with what is typical for books in the 20-25% range.
So there you have it. You’ve seen how much I paid and how much I made.
Go ask the other people you follow on Twitter to do that, I’ll wait.
Here are some completed transactions so you understand how this money was made (your favorite Amazon guru won’t share this):
Not every book makes this much money, some often result in breaking even. That is why you see an average profit total just under $30/book.
With the back to school season just about over, sales will return to their normal baseline until the latter part of Q4 and early Q1.
September’s sales will look laughable next month, but that’s expected.
2023 back to school season was friendly to everyone who operates with the same business model I do, as you can see below (from my mentorship group):
This isn’t a get rich quick scheme, it’s more of a make a little bit of money for sure scheme.
Hell of a place to start if you are stuck in the 9-to-5 grind and don’t know how to escape.
Unlocking freedom comes from deciding to start and never looking back.
That choice is yours and I can’t make it for you.
When you are ready, there are two different ways I can help you:
If you are interested in starting an efficient one-person online business, I recommend starting with one of the following:
Textbook Flipping Mastery - My in-depth guide on how to start a high-margin Amazon e-commerce business.
LEGO Investing Mastery - My in-depth guide on how to start a long-term “buy, hold, and sell” LEGO investing business.
The Conference Room - My private mentorship community that includes the two guides above, for free. Pay once and stay a member for life.
If you are interested following along with my personal LEGO investment portfolio and getting exclusive alerts when I add a new set to that portfolio:
Become a paid subscriber here (7-day free trial available)