Case Study #ESP523
This is one of the investors’ Amazon businesses that is managed under the ESP network. The investor has put an investment that is between £12k to £15k. As you can see, the actual activity on the account was started in the month of August 2020. An initial 2-3 months are considered as a warm-up period and usually show you either no profit or negative profit.
The marketplace is in the UK, and the account is managed from Karachi, Pakistan.
The last month of March 2021, has finally hit the highest sales and profit so far in the past 7 months journey. If we see the history of previous months, the sales and profits are continuously low. The reason being, UK has suppliers that are still in lockdown and most of them are working from home. It is difficult to get stock as many of them are out of stock as well. The brands’ inventory from China is also very slow-moving. Hence, sales weren’t enough.
Right now, it has about 45 active SKUs that are selling, a few of them are soon going OOS and will replenish. There is about £4500 inventory available in the account.
However, the month of March had better inventory available and showed some great numbers finally.
March has made £3k in the net profit. (there will be some minor expenses are to be added for prep which will be under £500). Let’s do the math for the investor as to how much he made in the last 6 months by investing under £15k.
About £6,000 in net profit (about a thousand per month). Now the invest gets 50% of the net as ESP and the Director takes the remaining half cut.
£6,000 x 50% = £3k in profit. I understand it seems low. But think for a second. As an investor who doesn’t involve in the actual tedious tasks for the business, is it bad?
Now, think for the next 6 months, with this pace, this account will be making about £5k to £7k inshallah. And with that ratio, the investor will be making at least £2500 per month of no work.
This is what passive income is for the investor. Many investors consider the 50% share is too low, I understand that, but this is business and has many moving parts to manage on daily basis. The ESP Director who works on your account deserves a fair share of his time and efforts.
This account is also making a small salary to the ESP Director and will also have 30% of his profit share.
Let’s talk from the director’s side now.
At this time, the director has 3 people working under him and managing 3 Amazon seller accounts, already making above $1k per month per my vision, but is yet to receive his profit share will make his income more than double overall.
These directors work as an agency but normally work ONLY on ESP account accounts as it gives them the peace of mind that they don’t have to deal directly with the investor or payments.
There are more case studies I am going to post soon. This helps you understand how the Wholesale FBA business grows gradually. Do not expect to make a fortune the next day, it’s a regular business like any traditional store and works safely when you steadily add new products with proper research and analysis.