YouTube interview (Capitalism.com, May 9, 2024) describing an Amazon/TikTok seller who does ~ $200M in annual sales driven primarily by a very small number of SKUs. The speaker emphasizes focusing on core products, cutting underperforming SKUs even if profitable, and pausing new launches for two-and-a-half years to concentrate on scaling the successful items.
Will probably do around 200 million sales this year. Three or four SKUs make up 80% of that new focus was probably like the key lever and like what made us successful. Once you find an edge and you're like, okay, we can make money, right? Like, you find something that works on TikTok or Amazon or whatever, it's so easy to just be like, I'm going to go launch a million products. I'm going to expand this to a million different channels. Year two or three, we had launched 15, 20 SKUs. Like, four of them were really working, the rest were just kind of floundering. We made a tough decision, like, let's cut stuff even though it was making money, right? Let's cut parts of our business, let's cut out distractions and let's just focus on our core SKUs. So for two and a half years, we didn't launch one new SKU. We didn't try to launch, say for two and a half years. Two and a half years, wow.
