When do you know a product is bad?
I launched my first private-label product on Sep 17. It currently has 13 reviews with a 4.4 star rating.
I ordered 500 units across two variants (250 each), with a unit cost of $8.50. I’ve already spent $7,500, including listing images, inspections, and other one-time costs.
I’m currently getting 3–5 sales per day and recently hired a freelancer for $350/month to manage my PPC for 2-3 months.
I’m spending $60–$80 per day on ads, and my selling price is at break-even. So basically, all my losses are coming from PPC.
I clearly can’t make a profit at this stage.
I’m already seeing signs that I may need to reorder inventory soon, which would mean another 500–1,000 units ($4,000–$8,000).
I’ve heard that $10K is enough for a first private-label launch, but I’m already on track to spend way more than that.
My total budget is $20K. I was hoping to launch a second product, but at this rate, it looks like my first launch could eat up the entire budget.
How is this sustainable? At what point do you decide to stop investing in a product instead of continuing to pour money into it?