Amazon resold a used diaper and now the small business is $600k in debt

“We started this as a dream to make enough money for Rachelle to be able to stay home,” Paul said. The alternative was Rachelle working as a teaching assistant, which barely covered the cost of childcare, they said.

The Barons were executing a plan to triple their annual sales to $3 million in 2020, when the review landed with a thud. Even though the diaper had a four-plus-star rating from hundreds of buyers, it was hard to miss the stain photos. More than 100 shoppers upvoted the damaging review as “helpful,” which increased its visibility. The algorithm was suddenly working against the Barons. Sales plummeted.

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many assumptions. They thought that that they had gained a foothold on the amazon site, but it wasn’t generating enough income. They wanted to expand then, because otherwise competitors would soon fill the perceived demand. So, loans to cover massive manufacturing volumes (cost per item goes down, but if no item sells, it’s a massive expense), bills from Amazon et al for warehousing unsold products.

Trump lost a shit ton of money mismanaging a casino, because the high interest loans were based on an unrealistic view of the market. The cost of capital is rarely convenient.

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