Retail

Where have I been? In The Warehouse!! “Busy” is an understatement!

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Written by Dave B

 

Hello folks, and welcome back to SellerAddition.com

I know it has been a very looooonnnnnggg time since my last post, but I have been super, non-stop busy since we got the keys to the warehouse.  First we had to move everything from our 5 bedroom home to the warehouse, next was sorting through everything which we kind of presorted before packing (but that didn’t help!), and it took forever to get thing where they needed to be.  After organizing everything, we realized it would be better setup a different way so we dived back in.  We did this countless times before getting what we thought was right, until we got a new truck load of products (24 Pallets) and we had to do it yet again! Well we finally got it right, and we opened the doors to the public. 

Our first week of sales to the public, when I compared it to our previous sales strictly using Amazon and E-Bay was not so good (we placed both E-bay and amazon stores on Vacation mode while we grasp ahold of the inventory to prevent sales from things we couldn’t find or may have been damaged during the transportation), So without these sale channels and strictly comparing the 1st weeks foot traffic sales I thought we were on a downward spiral possibly heading out of control….until I really dived into the numbers with my imaginary magnifying glass and broke down the details. Even though the numbers appear smaller for a week or sales in the warehouse compared to strictly just a week of sales on Amazon and E-Bay (how we conducted business previously), it was actually extremely larger. Here is an example, not using my actual numbers (just a very small iddy bitty tiny figure to give you a better understanding).

Let say we normally sale $100.00 a week using amazon and E-Bay (before moving into the warehouse). The warehouse first week of sales totaled $75.00 compared to that number -$25.00 (remember, just an example – you can’t run a warehouse with $75.00 in sales a weekJ). I was starting to panic; I know it’s the first week, but that number should have been much higher in my opinion (My nickname is Mr. High-Hopes). Did I make a mistake by placing Amazon and E-Bay stores on vacation mode while we transported and sorted through everything? Nope! Here is why!

Let’s just use one item as an example that may have sold for $100.00 to get us that total above. Well that item cost money (let’s say $10.00), now we have to pack and ship it. After that, guess what? E-Bay (Paypal) / Amazon get their cut for fees and listing. So that $100 might end up being about a $35.00 profit after everyone gets there cut and you get your money back from the original purchase of that item. Now let’s compare that number (same product) to a walk-in custom at my Warehouse.   That same item sold for $75.00 which is lower than my normal $100.00 E-Bay/Amazon price tag (what appears to be a $25.00 loss) after my fees for purchase of the item. Is actually a $65.00 gain!! Cha-ching! Almost doubling what I would have made selling it my normal way – because I don’t have to pay fees for an Outlet (E-Bay/Amazon) that I’m not using, nor do I have to pay for shipping! Plus the customer gets it at a huge discount, runs off tells a friend, family member or stranger – and now I have new customers flooding in repeating that same process. So it looks like this Warehouse investment is going to be hella worth it. (I’ve been in Cali for 3 ½ years and I’m already saying “Hella” quite a bit!)

I wanted to track at least 3 months of data before reporting back to make sure I was not just lucky that first week. It’s been like this since, with a little twist. After we got everything organized (sort of) we got all items (some excessive number of products) back from Amazon (No more FBA and strictly Merchant fulfilled now). This allows us to capture that foot traffic with more inventory and avoid fees and that lazy ass Amazon worker who is just going to toss your possible fragile product in a box with no protection. I kid you not, at least 10% or the items we got back from amazon were broken. Definitely not how we sent it in, but that’s how we got it back, made me wonder if the shit load of returns I had in the past by using FBA was because some lazy possibly underpaid worker just tossed my products in a box and shipped it to a customer that way. Well now we don’t have to worry about it, we have a warehouse and space, shipping supplies and care. We pack em ourselves if they sale on Amazon – and we know what the customer is getting unlike before. Actually it seems our sales have increased by doing Merchant Fulfilled by Amazon vs the FBA. I would have experimented with this before, but we didn’t have the space, if you got space, give it a try!

So Foot Traffic, plus amazon Merchant fulfilled E-Bay and Facebook sales. (REALLY A TON OF Facebook Sales – I’ll touch on this on my next post). Business is booming and keeping me busy for 12 hours a day. (Huge Thanks to Facebook for that local traffic). I know 12 hours sounds like a lot, but it really does not seem that long. It feels more like a few hours vs 12 – I don’t have to do 12, we are not open for 12 hours, I just get lost in the sauce. That shows me I found something I’m truly passionate about and love to do.

Until next time my friends!! Stay tuned, I promise I won’t leave you hanging that long again! Thanks for tuning in – Cheers!

About the author

Dave B

Thanks for stopping by and visiting! No intervention needed, this is a good and healthy addiction. Come along for the ride and hopefully you can learn from us!

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