Ahhhh the holidays are over kids are back in school, and life can go back to normal, right? Fourth quarter is the selling season between October 1st and December 31st where online retailers usually have the highest percentage of sales during the year. This has been historically true for retailers long before the internet came along, of course. Brick and mortar retail shops also experience the surge in traffic as people prepare for gift giving. For online sellers, this translates into a mad rush to get those listings up or send those boxes of inventory in (if you do Amazon FBA or Fulfillment by Amazon). Then, as sales start rolling in you have to keep up with the shipping and increased demand for customer service.
It’s a lot of work, and many people who work alone all year long start wondering if they should have hired some help to get through the season. This is where that old saying about how those who are self employed get to work half days—you just get to decide which 12 hours it is! Now that another season is behind us it’s time to do some analyzing and reflecting. What went right? What would you like to do differently next year?
The Holidays Aren’t the End of the Line
As a seller of vintage collectibles and antiques, I actually find myself not getting much of a break in the first quarter. I think in the party world this could be related to “hair of the dog,” in other words take another drink to counteract the effects of the last big binge! I don’t know about you, but I much prefer the sound of ka-chings on my phone to egg nog. There really is no time to take a break. While this will depend on what you sell, don’t think that people are done shopping. I’ve been doing this for a lot of years now and historically February is my best month for sales. I think the reason behind this is two fold:
- People got some Christmas money and get to spend it on themselves for those impulse items they’ve been putting off buying.
- The 2013 bills got paid, there is no more worrying about buying for others and people feel more comfortable shopping.
Tips for a Profitable First Quarter
Don’t think you can kick your heels up and relax just yet! This is still a time of list it, send it and ship it when it sells! Here are my tips for making this a very profitable first quarter:
- When looking at your unlisted inventory, pick out the highest priced, highest profit items to get listed first;
- List new items each day on eBay/Etsy—this increases your visibility;
- Don’t stop sending in Amazon FBA inventory!;
- Take advantage of retail store clearance sales and scoop up holiday-related items that stores will stop stocking on their shelves;
- Look at as many years of your sales history as possible and see when you can expect a break for doing things like preparing taxes and such.
The reason I threw that last one in there is because there are only so many hours in the day and only one of you. It’s important to optimize your time doing what makes you the most money at the given time. If your slow time comes in the second week of March, choose that for doing tax preparation; if it happens to come the second week of February, then that would be your time! The key is find the time that is optimal for your business!
Lastly, start your planning now for 4th quarter 2014. Don’t put off waiting until September to do a mad scramble to get that great inventory listed or sent into Amazon. Your business should have a plan in place and goals set. Don’t leave it to chance. Now, more than ever, you have great tools at your fingertips to get your numbers, analyze the data and take action!
Say good bye to fourth quarter 2013 and say hello to an even more profitable 2014!
This article was originally published by Outright.com
Danni Ackerman is the founder of The Danni App where she’s all about fun and profits. She is also the author of The Ultimate Guide to Savings by Store, Storage Lockers for Fun and Profit and her latest book Buying at Auction Houses for Fun and Profit. She is the organizer of the Las Vegas Online Sellers Meetup Group. Known as Udderly Good Stuff online, she’s been on eBay since 1998 and has grown up in the world of antiques and collectibles and reselling “stuff.” She hosts her own weekly show called Ask the Danni App, regularly appears on eBay Radio and is a speaker at eBay and eCommerce events and more. She is the mother of 4 including two youngsters she calls her shipping supervisors, and makes a lifestyle out of juggling business and family. Find her on Facebook and Twitter @theDanniApp.
Published: January 15, 2014
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