I hear the question all of the time “How many books will I need to have in inventory in order to turn a nice, consistent profit?”, and it’s a great question.
The goal for most online booksellers, at least from my perspective, is that they want to stock their book inventory to a certain level, get a nice predictable stream of income and then spend their time maintaining that inventory level.
Or, they want to set some tangible milestones for their business, they want to know what they should be aiming for in regards to a decent sized inventory. When will they be able to finally stop rolling all of the profits back into new inventory and take a little of the profits out of the business for themselves?
In an effort to help you through this goal setting process I have decided to pull the curtain back on my business so that you can see where we stand according to the numbers. Here are our sales figures in the book category for the month of June 2015:
In the month of June we sold 1,319 books. I’ve estimated that our inventory over the course of the month was in the 15,000 book range. So, considering these figures here’s what I’ve come up with:
Estimated Inventory: 15,000 Books
Total Books Sold: 1,319 Books
Inventory to Sales Ratio (what percentage of my books were sold): 8.8%
***Worth taking into consideration: June is one of the slowest months for books sales of the year, and this holds true across the entire industry. The slow down in sales could have obvious effects on your Inventory to Sales ratios. Also, in June 2015 we sent in more books to Amazon (to be sold FBA) than we have in any other month, ever. Obviously these books need to be afforded the opportunity to sell before we get too antsy.
All-in-all I hope you find these numbers helpful!
You are really close to getting actionable info to help you take your business to the next level or to start one from scratch.