As I’ve stated before, the fourth quarter selling season on Amazon almost always brings your highest income possibilities of the year. Many Amazon sellers find that their sales sometimes multiply ten-fold from what they’re used to during the other three quarters. How you handle your increased profits can possibly help propel you into even more profits in the year to come.
In the rest of this blog post, I’m going to share some of my top ideas on how to wisely use your Q4 income. Please don’t assume I’m telling you to use your money on all of the following ideas; rather read them through and pick a few that most resonate with you and where your business is currently. Here are some ideas:
1. Invest in time saving equipment – What are you doing now that can be done much faster with the help of some new equipment? Now is the time to research quality tools that can lessen your work load. A few years ago I purchased a 16 inch shrink-wrap machine and heat gun. Two years ago I purchased a box re-sizer and a newer laptop. Think about what tools can help you speed up your current work process. Could you be in the market for a Bar Code Scanner or Scan-Fob? Maybe you’d like to get a Dymo label printer. There are so many tools out there that help save time and money.
2. Invest in time saving programs – Maybe you’ve been listing your items directly on Amazon and are ready to save some time by signing up for Inventory Lab or other listing tools. Or maybe you want to cut your online arbitrage sourcing time dramatically with a tool like OAXray. These programs can help save a lot of time in many other areas of your business too (like repricing, financials, etc).
3. Purchase more inventory – In the weeks leading up to Christmas, many stores start to put toys and other gift items on sale at really great prices. If you wait a little longer, right after Christmas, many stores start mega clearance sales. You’ll find sales in brick-and-mortar stores as well as online. If you don’t want to get out and source inventory in the cold weather, you can find many great sales at stores online. In store and online, there will probably be more items you can buy for resale than you have money for. Amazon sales in January are still really good as people have Christmas gift cards burning a hole in their pockets, so it’s wise to keep stocking up your inventory into the new year.
4. Purchase supplies in bulk – What items do you buy for your business all year long? 3-inch Packing tape, shipping boxes, Dymo labels, and printer ink are just a few of the items that I buy all year long. It would be wise to buy these items in bulk now (at much better prices per item) instead of spending more money to buy them later in smaller quantities. Click on the following links to see more about the supplies I use in my processing desk and shipping station.
5. Pay off debt – As Dave Ramsey says, “Debt is not a wealth building tool.” If you have any debt, the wisest thing you can do is to pay it off as fast as you can. Imagine giving yourself a raise by doing the same amount of work you do now! When you are no longer paying debt interest fees, that’s money that you can use for your business. If you are in debt, I highly recommend Dave Ramsey’s Financial Peace University. For more information on getting out of debt, check out his book The Total Money Makeover.
6. Treat yourself – Sometimes we can be so focused on work that we forget ourselves. Getting too wrapped up in work can lead to burnout. If you can, give yourself a Christmas bonus and treat yourself to something fun.
7. Invest in Your Mind – Is there an Amazon FBA related book, course, or program that you have been interested in buying? This might be the best time to buy FBA training materials so that you can learn how to improve your current Amazon business. You are the number one asset to your business. Invest in yourself. The more you can learn, the more you can earn!
8. Invest in your future – What if you could make 2017 your best year ever? You don’t have to spend another year frustrated that you haven’t achieved all you know you’re capable of. Instead, you can enter the new year with the clarity you need to reach your full potential and make this your best year ever. All you need is a plan. Find out how by checking out 5 Days to Your Best Year Ever.
9. Give generously – If you have yet to discover the joy of giving, I challenge you to try it this holiday season. There are so many worthy causes and organizations that need your financial help. Remember to find out if the money you are giving is tax deductible or not. If it is, be sure to keep receipts for your tax records.