My $2.1 Million Sales vs PROFIT breakdown on Etsy and Shopify (First 3 Years)
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- Опубликовано: 24 авг 2024
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In this video I am sharing my REAL net profit after all expenses. The REAL value in this video is being able to relate this back to your own business so you can have a clear understanding of key metrics you need to make higher level decisions in your own organization.
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This was extremely valuable. It really helps to understand all the costs associated with selling online in general. It also helps to know that even if a seller makes a million dollars in revenue, that is not what they get to keep. Very educational. Thanks Hannah!
hey thank you so much for the the thought-full comment!! I am happy you got value
Thanks Hannah. You're extraordinarily generous giving your time and knowledge like this. Wishing you every success!
Thank you! You too!
Thank you Hannah! You content is always so valuable. 💕
Hey thank you so much !! Seriously makes me happy !!
Hi! This video is just on point for me right now. My little company is just getting some wind in its sails as I finally figured out etsy SEO and put some intelligent work into my marketing and store branding. Not so intuitive when one is a farmer by trade... but I did it anyway. I now need to get down to the nitty gritty of my COGS and figure out how to price my products to be both competitive and profitable in the long run.
WOW so awesome! you are awesome keep it up
That was super educational. I need to pay more attention to analyzing my profits.
Hey thank you so much for the love and watching
Never put your future in the hands of another Man
Great job Hannah!
thank you so much for the love and watching :]
Fascinating to go through this, especially since I have never had even a basic business education, course etc.
Correct me if I'm wrong, but taxes will be deducted from the profit line as well, depending on the laws of your country of course.
This is kinda unrelated but I think income tax will only apply once you actually pay yourself out of your business account...if thats what you do, but I dont know.
Another great content!Thanks for sharing!
Hey, thank you for always loving commenting
I believe things happen for a reason. It great you had your Etsy back.
Thank you so much for the comment and sharing the love
@@EcomHannah you’re welcome
I hope you’re having a good holiday
@@CreativepreneurJourney !!!!! your awesome
Very informative, thank you so much!
Glad it was helpful!
Great info, thanks for doing this video.
Glad it was helpful!
What’s your Etsy store called and what do you sell?
Thank you Hannah!
Thank you for watching
The sheet is great; thank you, by the way --there is a typo in the spelling of the word "calculator"
ohhh no haha thank you for letting me know
Awesome helpful video
Thank you so much for watching :)
Hannah! So inspired by your video. What tool do you use to keep track of your expenses etc?
thank you soooo much!!! I am actually building a software for this! but right now just quickbooks
@@EcomHannah ah! We look forward to hearing about it. Thank you for your prompt response. Just know you have a couple in Virginia who loves ya! ☺️
wow awesome thank you so much for the love and watching
but what about sales tax? why isn't it ever included? here in Germany it's 19% of the total cost, it is a big deal and a big chunk 1/5
mmm in the USA it is a wash what you collect and readmit is the same so that is why I did not include
Nice video you inspire me a lot Hannah 🥰 I'll soon sell stuff on Etsy too
hey thank you so much the love and commenting
Thank you
Thank you for tuning in :]
Great video 🍿 what helped you keep faith after a year of losses for that brand that you mentioned? 🙏
Yessss! Different brands and different niches take time to optimize, it has taken my second brand over a year before started making any real Money
@@EcomHannah but what gave you the reassurance that it was going to work? 🙏
@@LennyYT Yes for sure, you only fail and lose money if you give up!
@@EcomHannah hope and pray then ? k k 🙏🙂
@@LennyYT :]
So interesting! What program do you use to track your margins?
I’m actually building a software tool to do this for you but right now the solution is using Google sheets
I don’t understand your calculations, how can you jump to profit when there’s no labor (your salary) expense?
Mmm only 1 year there was no labor cost. 2020 and 2021 it’s included, not sure what you mean
@@EcomHannah I think what they meant to say is: where is your salary while doing the math? Like how much did you pay yourself for doing the etsy job regardless of how much you made. As a self-employed you're supposed to pay yourself first and whatever else is left after that, that's profit.
I got you, yes idk I didn’t really think to include that since I was covering direct expenses only and I am the sole owner, so technically everything leftover could potentially be mine since I never had debt. I put myself on a really small salary of only 4k a month just to show that I was making income and would take larger sums out as shareholder distributions
If I needed, I didn’t really start paying myself a W-2 salary until 2020
Merci beaucoup Hannah ❤️
Thank you for watching :]
French :]?
@@EcomHannah exactly 🇫🇷
✨
Hey, great video. I was wondering, the the numbers you present, are then subjected to additional country taxes or are this already included on the math? (I don’t know how this works in all countries, hence the question)
Yes in the USA I then had to pay taxes on my income, but this varies per business and how your accountant writes things off for you, different rules do apply to different countries
@@EcomHannah thank you for your answer ☺️ So in your case, what is the average % of those taxes?
On the top of my head I am not sure what exact % I paid per year as it was different every year depending on my direct and indirect expenses for that year and the amount of write offs we had for both direct and indirect. But it also varies per state so looking at my taxes as a reference for your own would not be true value for your own business there are too many variables and write offs that I was able to have that you may not, so I would ask your accountant for a projection for your state specifically or if the reasoning is because you are afraid of paying a lot in taxes DONT BE haha paying taxes is a good thing and allows you to gain access to more capital later on, get better rates on real estate investments, etc but also the amount you pay as a business owner will never be that of an employee and it shouldn't be since you are assuming more risk / working 100x harder than employee
@@EcomHannah thank you for the long answer and complete answer ☺️ just trying to weigh everything in
@@saramat22 for sure it is 10000% still worth it every time you become a w2 employee trust me your paying more in taxes
I think its possible to have 25-30% margins fairly easily. Its not a huge profit but if you make as much as her you def get a lot of money with most of the work already been done prior
Mmm yea it definitely depends on what your selling if you a flipping products from china it’s a lot easier but if your making in house it’s a lot more difficult after labor cost - a store could have 50% margins if they find a niche like that but I would say industry standard you are lucky to clear 20% even if you’re selling things that have no cost like digital downloads you’re still gonna spend double in marketing ads than others since comp is so high so everything is kind of a trade off ya kno
@@EcomHannah Yeah I was referring to Print on Demand I think its possible to get that margin and still build up sales if you work hard enough
Sure yes I definitely agree, the best I have seen with a Sole POD model maxing out their ad budget is 10-15% net which is still amazing since their is no risk of inventory cost, the best stores I have seen like that usually have 1.5k+ listings and do anywhere from 150k-300k per month
Smash?
Lol
What are you selling?
this brand was the fast fashion accessory
@@xarislef7457 that's trendy now but it might not be trendy tomorrow.
For sure, this is true for anything you sell if you getting into Ecom and this niche def took a lot of constant r&d, research and development is something that should be built into your SOP processes on a weekly basis to stay competitive
Unfortunately, anything you sell has a life span nothing last forever that’s why there’s a constant upkeep no matter what you’re selling unless you’ve just completely built a moat around yourself but those niches tend to be more risky since you’re having to reinvent the wheel on some thing instead of going after a proven concept, but hey bigger risk bigger reward in some cases.
Not designer fashion
I like the sharing and the vigor in which you do so. Absent context and more information this information is not very useful, however. Also, you math is a bit flawed specifically with the fixed cost of Esty fees (i.e. listing and trans fee). You're overestimating big league. 1% is X the total prices of goods sold. 45 cent != 1% e.g. $500 goods sold (1 item 1 listing) @ 1% = $5, but your cost actual cost are 45 cent not 5 dollars. Its may seem like small potatoes initially, but annualize it and it s can be significant overestimation. Also, you appear to letting success go to your head. How so, your expenses are ballooning at a rate faster than your sales are increasing (at first glance).
Tighten up those expense to improve your bottom line. You stated that you were paying someone part-time (really part-part time I think were your exact words or thereabouts) and the annual expense for that employee (singular) was 33K. WOW, can I come work for you (really part-part time) for 33K a year? Good job and it's great to see you share your success, but I can't see how it's can be applied for my current situation. I also like how you're honing in our your oratory skills (less rambling) and focus... keep up the good work on that. Very noticeable from your earlier videos.
Thank you for the thoughtful comment, yes definitely have made many mistakes as a young entrepreneur and my first few years in business. My expenses definitely did begin to balloon as I started over staffing as I was preparing for more growth not a suspension that we saw in 2021 that also lead to ACOS doubling as-well. Again another mistake / lesson made by me. Keeping that bottom line as low as possible is super important as you mentioned. I really was not far off on my numbers in the video. I am not really sure what you are explaining with the COGS. My COGS % was correct in the video and accurately depicts that cost % in relation to my top line sales as we do accrual based accounting which is the correct form of bookkeeping for an ecom business. This associates every sale with a cost of goods sold through out the year. The value for someone watching lies in learning how to view your metrics from a larger view, most etsy store owners do not do their P&Ls properly especially when it comes to COGS. It is one of the very first things I usually consult people on. But overall thank you for the support and tuning in :]
Miss u are so beautiful ❤️
Very informative video
I am haris i send u msg on instructions
Thanks for watching