Finally a Realistic Story of Owning an Amazon Store!
There are tons of people out on social media giving business advice. Some of it is good advice, but most of it isn’t good. In this new series watch CapForge’s owner react to different advice videos. He’s an expert in all things business and has 20+ years of experience under his belt. Some of the things he reacts to might even surprise you!
CapForge Founder and Owner Matt Remuzzi reacts to what happens when a product you sell fails.
Video Transcript:
Business Advice Video:
I lost around $1,600 selling Amazon FBA doing wholesale. I bought these two products here that I need to sell now at a negative because they’re just taking up too much money and space in Amazon’s warehouse. I made the wrong call and now I need to liquidate. I need to get rid of all this inventory so I can put the money into better products. I obviously sell more than just this so this is just an example to show you that you do need to liquidate and take some losses. Like I said, my rule is that after 90 days of something is not selling, I made the wrong call, so I need to liquidate and put the money in something else. I share these kinds of mistakes with my community all the time. If you wanna learn more go to my profile.
Matt’s Review:
Well okay, it’s nice to see a video once in a while where somebody talks about something other than phenomenal success that they’ve had, so cool. He’s talking about how, you know, he made the wrong call, bought the wrong products, and lost 1600 bucks. That doesn’t mean he lost all the money. It just means that whatever he was hoping to sell for he couldn’t, he had to lower the price to get rid of stuff and that’s the amount that he lost relative to what he spent to get those products in the first place. This is really common. What’s unfortunate is when somebody’s not paying attention to how much each of the products they’re selling is making them. And some products may be making money, others are losing money, the ones that are making money are covering the losses and you don’t realize what’s going on. So you keep running the business, keep selling all the products and keep making a lot less than you should be cause you’re not constantly evaluating each product on its own and getting rid of the ones that aren’t working. If you’re doing that like he is then you’re have a much better chance of only keeping a stable of successful products and getting rid of the losers quickly. If you’re not paying attention then it’s easy to have a lot of what should be your profits flowing right back out the door subsidizing money-losing products that you’re not clear on are losing you money.
