Emanuel Ruiz's shoe glue product hit a New Release badge and sold well, but cost $3 per click on ads and broke even on every sale. He ordered massive inventory hoping to lower costs, which backfired. His lesson: test with half your order first, prove the product is actually profitable before scaling to 10k or 20k units.
All right, another product that quote unquote failed was my factory lace shoe glue. So let me tell you a story about this one. This one was actually Amazon's new release for the category, and I was making so many sales unprofitably. So that's a double-edged sword as far as like trying to get data when it comes to Amazon FBA when you're first launching, because you can hit on certain keywords But if you hit on certain keywords, it doesn't mean that you're profitable. So for this instance, I was hitting like crazy on the word shoe glue, but shoe glue was like $3 cost per click. And every time I was making a sale, I would have like 100% ACOS, which is crazy. But I got that new release or that new, uh, new seller, like new release badge. So I kept on pushing and pushing and pushing to the point where I was running out of stock. So I was stuck in the dilemma between, okay, this is selling really well, I'm getting good reviews, eventually I'll start going ahead and ranking. But at the end of the day, I was unprofitable. So I made a huge reorder on this one as well, thinking that eventually I will figure it out, eventually I would drive cost per click lower, eventually I would become profitable. But it never ended up panning out. So that's why I always say, let's say you order 500 units as your test order. $250,000 or half of those should be testing, getting data, getting reviews, getting everything that you go ahead and need to help with conversion rate. The next $250,000 is all about trying to figure out if this product is going to be profitable, because if it's not profitable, you don't have a profitable business. And why would you go ahead and shell out and order 10,000, 15,000, 20,000 units if you don't know if it's gonna be profitable or not?
