How Much Profit I Made from Online Arbitrage [Expenses, Taxes, & Profit]
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How Much Profit I Made from Online Arbitrage [Expenses, Taxes, & Profit]


alright guys welcome to the video now
it’s been a little bit over a month since I’ve done in expenses tutorial
here and we’re using the business template again so for all my online
arbitrage sellers out there or literally anybody that’s doing an e-commerce
business this template is really really really gonna help you out if you want it
and you don’t have it obviously I give it away in my course but if you want it
it can help a lot of people out and I wish I had something like this to keep
track of everything when I first started so I knew exactly what I made exactly
what my profit was exactly what my cost of goods were tracking my expenses and
more importantly what I had to allocate for taxes if you want this to shoot me
an email I popped my email up on the screen right now for you shoot me an
email as for the business template and I’ll just link it to you now we’re gonna
talk about the income the expenses and the cost of goods so that we can track
our profit and the taxes that we have to pay for October of 2018
my birthday month now as you can see here there’s not that many expenses and
we were actually down quite significantly in October which I don’t
actually remember at the time of creating this but apparently that’s how
much I made in October so I did check November in December and it does spike
back up drastically in November back to the normal about 10k a month and then in
December I just completely hit it out of the ballpark
obviously that’s normal for most ecommerce businesses especially for
Amazon and q4 you know you have literally anything on e-commerce you’re
gonna sell a lot more in December because Christmas is literally right
there so that’s to be expected you know October you could basically say
that you know maybe I had a down month it looked
apparantly and we’re gonna talk about here in a second like there wasn’t as
many good products to source in October for online arbitrage but it could have
been a number of other things too it could have just been like a lot of
people not necessarily going out and spending a lot knowing that full well
that you know maybe you know the holidays were approaching or something
like that but this is exactly what I made now for the expenses I do you know
the last two months both September even though I made a lot more in September
and in October I didn’t have that many expenses so if you want to see examples
of expenses all throughout because we’ve been tracking the the basis of the back
end of the business model for the online arbitrage all throughout last year we
just have October to do and then we’re going to do to November in December as
we move forward well so you guys can see all that you
can see the back end because a lot of people don’t usually talk about that but
I give you know countless examples of different expenses that I expense on my
business throughout the months of like January to June and then on top of that
I think in the last one in September actually I can’t it was only 1:29 for my
Commission commissions and fees and I went through and I just gave you a bunch
of different examples of things that you might expense for advertising things
that you might expenses for the cars and the trucks things that you might expense
for you know contract labor or depreciation or health insurance or
utilities stuff like that so if you want to check those out though all those
videos especially September to give you examples that you know you could
basically relate to your business and your e-commerce you know business then
you can go ahead and check that playlist out I’ll make sure to drop it in the
description it’ll be labeled something like you know
business expenses taxes or something like that I forget exactly what it’s
called but the playlist is down there so moving forward it looks like the two
payments that Amazon paid me in October totaled a grand total of six thousand
seven hundred dollars and 306 thousand seven hundred and three dollars and
thirteen cents now obviously the commissions and fees
always stays the same I checked it it was still 129 so there
weren’t any other expenses it looks like that we’re on my card or my bank account
for the month of October so we’re just gonna move forward and move on this is
gonna be a short one now if see here that that takes the expenses off
automatically that’s why I love this spreadsheet and it brings my group my
net income to six thousand five hundred seventy four dollars and thirteen cents
but wait that does not mean that that’s what I actually made because a lot of
people might think that hey you know I made six thousand seven hundred dollars
because that’s what Amazon paid you out right but you didn’t because obviously
you have your expenses and then you had your cost of goods me specifically and
your business model might be different if you’re doing like private labeling
for example obviously then your cost of goods is gonna be what you sourced from
your products overseas or something like that so it could be multiple thousands
it might be like five hundred depending on where you are in your business model
for online arbitrage it’s gonna differ every single month obviously to for me
specifically I spend a grand total of one thousand one hundred $1.29 in the
month of October and the way that I track that I get this question all the
time is basically I have a business bank account and then I have a business
credit card the only purchases that I ever make via those two
things so the bank account it’s like the debit card and then the business credit
card are literally for business cost of goods expenses so I know that if I look
at my statement and both tally them both up and they equal one thousand one
hundred $1.29 then that is exactly what I spent on my cost of goods now I do go
through and I outlined them because obviously we have the commissions and
fees there too but so that’s how I basically keep track of it you might do
something different but that’s what works for me and that’s what my
accountant suggests that way we have like a you know kind of like a what’s
the word I’m looking for like a tracking system I guess you could say so that we
can always go back if god forbid I get audited or he needs to see something or
we have questions about where some money came from or whatever so that’s how what
I do that’s what works for me so let’s pull up the calculator and figure out
exactly what I actually profited from online arbitrage in the month of October
2018 so we’ll take the net in the net Perella income right let’s move this
down so that we can see so we’ll take the net income so six thousand five
hundred seventy four dollars and thirteen cents minus the cost of goods
because that’s what I had to spend to make that money with online our charge
right so one thousand one hundred and one dollar and twenty nine cents and
that leaves me with a grand total profit margin of five thousand four hundred
seventy two dollars and eighty four cents so that’s what I made that was my
profit but I do have to pay taxes on that so when you work you know a normal
9:00 to 5:00 job or you have an employer right there gonna take your taxes out
ahead of time before they pay you as an entrepreneur in most cases unless you
set up like an automated business bank account which I have talked about in the
past if you want to check that video out I’ll drop that as a card up in the
right-hand corner and I’ll also link that down in the description below I’m
pointing up but I think I’m up in the top left right up here right now so
maybe I’ll point like like over what is it is it over or it’s over I don’t even
know but it’s I was up in the right corner it’s also linked in the
description below if you want to learn how to do that you can also use like an
app there’s automatic apps that will literally just take a certain percentage
of every single transaction that comes in to your account it’s very very easy
to set up but I like to just allocate it myself I used to have the automated bank
account and now I just allocate it depending on what I’ve
my tax bracket is because I look through it every single month and every single
quarter with my accountants so I like to people always give me a you know craft
about this but I like to take 30 percent out for taxes ahead of time now it does
not mean that I’m going to you know basically pay all that money in taxes
whether you’re paying monthly quarterly or you know at the end of the year but I
just like to have more in my tax fund for a lot of different reasons right so
I’d rather have more at the end of the year than have to come up with money to
pay my taxes so I’d rather take 30% then like 20% just in case I have to pay more
than that so it’s more of like a conservative estimate why I take more so
what I’m gonna do is I’m gonna multiply this by 70% right because if I multiply
that by 70% that’s what I actually get to keep all the rest of it goes to taxes
so we’re trying to figure out what I made after taxes like a normal employer
would pay you out right so in the month of October that means that I after taxes
made three thousand eight hundred and thirty dollars and 98 cents from online
arbitrage know you guys like this video please toss it a thumbs up I really
really appreciate it furthermore if you stayed this long
there are still – yes there are – coupon codes left usually to go pretty fast but
I guess you know people I haven’t done online arbitrage videos in a while
probably come over a month honestly so you know the last video that I did
online arbitrage was like two three days ago and I see up five coupon codes only
three of them were claimed which was a surprise to me so there are still two
left so if you guys do want those I’ll pop the coupon code up on the screen
right now for you now there’s only two left once they go that’s it and you can
find that course down in the description below or you can simply go to online
arbitrage pro dot-com so online arbitrage procom use the coupon code up
on the screen right now and with that being said I’ll see in the next one

18 Comments

  • Chris Andews

    Hey brian . When I coupon arbitrage site and resell on Amazon do I buy n sell on my Amazon prime account or do I get another account if so is it free ?

  • GORDON OKLAHOMA

    Hi Bryan, thanks for this video.
    I have 2 questions; Wouldn't most of the items you are calling Cost of Goods sold actually going to sell in the future?, and are you still off of Ebay?

  • Steven Pope

    Figured it was time for me to leave a proper testimonial since I bought Bryans course over a year ago and have done Online Arbitrage actively everyday since.

    You definitely make money this way however there are some things you ABSOLUTELY need to know before doing this method:

    1. More and more people are starting to do this method, and the buy box price gets shot down. There are resellers that get multiple accounts and buy 8-10 units and shoot the price down and if its a slow seller you have to wait if you don’t feel like competing for pennies. So frustrating. It’s always the same sellers too.
    2. A lot of these brand owners are RUTHLESS. They report you and you have to jump through hoops to prove you aren’t selling fake products. When you appeal to Amazon you have to have the EXACT proper wording when dealing with Amazon or they just reject your appeal and you have to keep repeating the process while your units just sit there un able to be sold.
    3. The brand owners will buy the product from you so they can leave a nasty comment on your seller account- these are pretty easy to get removed but there have been a few that took a while. They also return the product so then you have to resend it in.
    4. A lot of these product launches aren’t good. Bryan teaches you to stay within certain metrics which you should- but this just means there are less good products.
    5. I’ve also noticed less and less products are being launched this year. I dunno why.

    Its definitely a great course to get comfortable with on Amazon ESP if you just have a few dollars to play with. I recommend starting with a $100 to actually be able to scale. I personally started with 1k.

    I still do this method, but way less than I was. The above hassles just aren’t worth it to me anymore. I am making more doing retail arbitrage, and private labeling.

    Thanks Bryan for providing this info. He’s a great teacher and has helped me a lot through emails and stuff.

  • Oscar Martinez

    The fake gurus would’ve just said everything is straigh profit 🙄😂 glad you broke it down man, taxes and whatnot are gonna be a nightmare down the road 😳

  • BlueDollarBull

    Thanks for the breakdown Bryan.
    Have you ever considered using accounting software? I use Xero and it's amazing. Big time saver.

  • Money Weed

    Hey Bryan currently putting your course into action thank you 🙏🏻.Q Whats the best way to create multiple accounts on vipon from the same household,do we need different bank accounts or is it just different email addresses,can I use my girlfriends email with my bank details,🤦🏻‍♂️I no you went over this b4

  • Let's Talk Money! with Joseph Hogue, CFA

    Love the detail in the template Bryan! Nice to see examples for expenses to save on those taxes.

  • General Kai

    I live in India but sell used books in the Amazon US marketplace using a prep service. Your model seems great as profit margins are high with literally no competition. Can I do this too using a fba prep service even though I don't live in the US? If I just manage to get a US phone number, there aren't any more requirements, right?

  • Gopal Dutt

    Hi Bryan, I was creating a removal Order from FBA . So when i click on removal I am taken to ship to address or dispose. What should I select. Should I ship to my prep centre or dispose it.

  • Money Weed

    Hey Bryan,iv ordered 30 odd products with the help of your course,I’m working out the profit I made witch isn’t much since Amazons FBA and referral fees eat into it.I’m also using a prep center in a tax free state as I’m from Ireland.🤯most products I order are 50% of and FBA fee is around the $4 to $5 mark for small items plus the referral fee being around the $2 to $5 mark,then I have my prep centers cost,there isn’t much left for me.HELP

  • Ed boracay

    You do the prep yourself and you pay for your barcodes and shipping to Amazon that's an extra cost you left out so how much would that be and if you had a prep center do it this what is an average cost for this how much do you think?

  • Ed boracay

    Also how many hours of work do you estimate finding and prepping yourself for this month? Thanks and what your doing is called piggybacking on a listing which is allowed unless its a knock off then its called highjacking a listing and this could get you suspended? Thanks

  • Bryan Guerra

    Online Arbitrage Pro 2.0 has just launched with over 20+ hours of Step by Step Sourcing Tutorials to help you make thousands every month reselling. It covers 9 different forms of Arbitrage (8 Brand New Methods!).

    For a limited time, you can enroll in Online Arbitrage Pro 2.0 at Half Price! Use the Coupon Code OALAUNCH at checkout here: http://onlinearbitragepro.com

  • Mahim Choudhury

    Hi Bryan I just purchased your udemy course and I was wondering do you go over where you source from on that course or is it only coupon sites?

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