- Patrick Muir
- On January 26, 2015
- 0 Comments
Since starting the Seller Labs $25k Challenge I have spent $3,335.38. The vast majority of the cash ($2,924.10) has gone to inventory. That inventory is spread across five different products:
- Barney Butter Smooth 16 oz 3-Pack (1,850.76)
- Barney Butter Crunch 10 oz 3-Pack ($350.58)
- Newman’s Own Organic Raisins 15 oz 3-Pack ($155.00)
- Newman’s Own Organic Prunes 12 oz 3-Pack ($175.00)
- Soap Molds (392.76)
The majority of my inventory ($1,850.76) has been dedicated to the Barney Butter Smooth 16 oz product because it’s proven to sell. I spent $431.78 on a small test and turned it into $743.81 in sales (not profit) in less than a week. It sold out, but I have another $159.08 in inventory arriving in FBA any day. Because how quickly the product sold through, I spent $1259.90 to expand the test.
My process is simple – dedicate a small amount of cash to buying inventory of several products and scale the products that sell well.
I should have three tests starting today or tomorrow including the Barney Butter Crunch and both Newman’s Own organic products. The Soap Molds are still shipping from China, so it will be at least a week until that test will begin.
I’m just getting started on tests. So far the products I’ve tested are easy to copy and have low margins. I’m working on launching more unique products that will be difficult to copy. These are the types of products that generate large margins, but take more work to launch.