It figures that I would start writing a new blog post with the absolute horror that I never wanted to share. In April of this year, I lost over $10,000. To be exact, this is the estimate Amazon says I lost. This is a stomach churning notification. I knew I was losing money. Every day my confidence fell a little bit more, as I waited for notifications that my product was en route. I waited. And waited. And waited. One of my suppliers I’ve been using for 6 months now, changed without notice. Well, my sales rep quit. He was my favorite rep! How could he not tell me before hand!? He contacted me shortly after his quitting from his new company but sadly, his new company didn’t offer what I needed. Otherwise, my loyalty was to him and I would have gladly moved with him. Meanwhile…My new sales rep? Well, she’s slower. A lot slower. We had hiccups with her wanting to change to T/T. Then we had hiccups with her advising there was a business merge, so I needed to pay a new PayPal account. The skepticism stacked, and I procrastinated using her services. But then, it was D-Day. I needed to purchase a reorder of inventory, or…you guessed it, I’d run out of stock. I purchased. And a week later, I purchased another order.
(Against my better judgment.) I had made a bet with my mastermind group that if I ran out of stock, I would pay $50 to a charity that I do not support. (Rather, that I loathe.) Well, mid April- I paid my $50. $%#! I messaged my sales rep impatiently because my previous turnaround was 18 days. I was used to this standard. For six months, I had this typical turnaround. I always gave an extra week of transit time too. This was an abomination to me.
Fast forward, weeks later and I just went back in stock on April 30. I went out of stock for more than half of the month and with it, my sales tanked. Meanwhile, as if this was not enough, another product had a similar hiccup. Except, this product sold out faster than I expected (after I placed a reorder)- so I ran out of that too. Two products caused me a lot of pain in April.
The Real Takeaway
- Buy more inventory.
I have often lived month-to-month when it comes to inventory. Buying only what I needed to get by, never wanting to sink too much cash into one product. For a while, this product produced so much fear that it would get ruined, hijacked, or stocked out. Now, I’m trying really hard to keep in stock for no less than 45 days at a time.
2. Buy more inventory.
See what I did there? You’re going to tell yourself you only need 30 days worth. Or you don’t know what will happen in June. You might say you need the cash flow for something else. Do it. I’ve run out of stock time and time again and while I’m always within 2-3 positions of my normal search position- it’s still a climb.
For the second product I mentioned, I was so worried about stocking out again, I ended up buying 1250 units. Only to have my old norm of 10 a day sales, resumed after a week of 30 a day sales. (Mother’s Day perhaps?) Since I ran out, I can’t really tell if it was Mother’s Day or what the hoopla was for…Well, now that 1250 units? That will last me to mid September! What can I say? One last thing for me to worry about!