Profit margins

marie-20

My main business is Amazon rather than eBay - we take around 75% on Amazon.

As we have such a high turnover of stock we hold a lot as one week one item will be popular and we will sell cartons of then and then the following week we will only sell one or two so it is soooo variable therefore we hold a minimum now of a carton of each item but a carton can vary anywhere from 240 to 4896.

We actually hold around 3 months worth of stock value at any one time but not 3 months worth of each individual item as some items turn over too quickly if that makes sense but I do have around £15K in one item alone as it was the top seller on Amazon last year and we sold around 22,000 of them in a month but as it is a seasonal item that has been discontinued in the UK but available in the US we purchased a further 20,000 as they aren't available in the UK so we will be able to charge a lot more than we did last year (fingers crossed).

Anyway - nothing tried, nothing gained! Any new line or big purchased is only purchased if the business can afford to loose the cost and luckily there has only been a couple of lines that did fail and they only cost around £150 each.

I ensure that we have a minimum of £10K in our bank account that we can draw on at any time and that is a level that I will not drop below.

Takeaway_addict - that is pretty much how we work which is why we now have around 150 individual lines and that is constantly increasing.

mcja

Just a little post note....I put a bit of market research on a mums website, and have been asked for a price list already, this would cut out all ebay charges.....happy days.

I am not going to rush in, I have explained my situation but said that I would be delighted to discuss and price up an order for this customer specifically.

Thankyou all again and wish you all continued success.

RFW

mcja wrote: »

Just a little post note....I put a bit of market research on a mums website, and have been asked for a price list already, this would cut out all ebay charges.....happy days.

I am not going to rush in, I have explained my situation but said that I would be delighted to discuss and price up an order for this customer specifically.

Thankyou all again and wish you all continued success.

You can use http://www.gbbo.co.uk/ for free website and even incorporate with Paypal for shopping carts etc. Fairly straightforward to set up a simple website.