The Kabbage Blog

Well, we have gotten our first notice for our first Kabbage payment. They take it directly from our PayPal account. So we have made sure to keep that payment amount in PayPal. It is exciting to see us paying it off and seeing the ebusiness working.  Ironically today I have listed the last of the items from all of the purchases made from Kabbage or Kabbage earnings. This being the case it is time to look at the business and evaluate.

Bruce and I have been talking about the next Kabbage advance. The first one was relatively small because we wanted to try it out. We wanted to see how we handle repayment and see what the returns are. (A full report on that is forthwith from Bruce soon!) This first purchase for resale has made and is making very decent return, percentage wise. But we are a big family and we have big bills. In order to make this work we are going to have to have a bigger influx of money.

Bruce and I sat down and had a business meeting. As wonderful as the returns are they are not meeting our financial needs. After much discussion and frustration over the list of bills and the household day to day needs going unmet. We came to the conclusion that we need to buy and resell bigger ticket items as well as the smaller.

See for us the smaller items have had a great return and a nice quick turn around. Turning a dollar into ten dollars is an amazing return but you have to do that ten times to make a hundred dollars and if you include fees, Kabbage repayment, giving through eBay Giving Works, unsold items and COGS. You have to make 12 or 13 sales to make a hundred dollars. That is a lot of work.

Bruce suggested that bigger ticket items take the same amount of time and effort to list. Why not take the time and effort to turn ten dollars to a hundred or a hundred dollars to a thousand. I agreed with him but warned that we need to be wise and continue with the smaller ticket quick turn around items to keep the income flowing. Larger ticket items do not move as fast but provide a nice boost to our income when the do move.

So now with our new plan in place we will finish off this inventory, finish paying our Kabbage advance and begin anew.

How did Bruce & Rhonda reach this pivotal moment in their ecommerce business journey? Start here and find out:

Bruce and Rhonda Procure a Kabbage Advance [The Kabbage Chrnoicles, Day 1]

Kabbage is in Beta! If you want to start your own Kabbage journey, sign up at Kabbage.com.