I Tried Selling AI Art Ornaments For 30 Days

Jensen Tung
25 Dec 202308:58

TLDRIn this video, the creator embarks on a 30-day challenge to sell AI-generated Christmas ornaments, using Leonardo AI for art and Printful for on-demand printing. They list the ornaments on Etsy, targeting specific occasions and allowing customization. Despite no initial sales, they remain hopeful for a December surge. When sales finally come, they face challenges such as off-site ads fees, VAT, and a damaged product requiring a refund. The creator learns the importance of starting early and being aware of all costs. In the end, they sell three ornaments, earning a net income of $35.10 after expenses.

Takeaways

  • 🎨 Use an AI art generator like Leonardo AI to create unique designs for ornaments.
  • 📦 Choose a print-on-demand service like Printful for manufacturing and shipping, which handles all logistics.
  • 🛍️ Sell through an online marketplace like Etsy, which is popular for arts and crafts and holiday gifts.
  • 🔍 Integrate Printful with Etsy for a seamless listing process.
  • 📸 Use mockups and Photoshop to create appealing product photos for your listings.
  • 🔑 Include popular keywords in the title and tags to improve visibility on Etsy's search algorithm.
  • 💰 Price your ornaments competitively, aiming for a 30% profit margin, considering the costs involved.
  • 🚫 Be aware of additional costs like off-site ads fees and VAT, which can significantly impact your profit margins.
  • 📆 Start preparing and listing your holiday products months in advance to allow time for sales to pick up.
  • 🎓 Learn from the experience and adjust pricing strategies for future sales to account for unforeseen costs.
  • 📈 Consider using advertising on the platform to boost visibility and potentially drive sales.
  • 📦 Offer customization options to increase the value of your product and appeal to a wider customer base.

Q & A

  • What is the purpose of the video?

    -The purpose of the video is to document the journey of selling AI-generated Christmas ornaments for 30 days, from creating the art to manufacturing and advertising, with the aim of understanding the potential profitability of such a venture.

  • Which AI art generator is used in the video?

    -Leonardo AI is used to generate high-quality images for free.

  • What type of ornaments does the creator plan to sell?

    -The creator plans to sell flat wooden ornaments with AI art and text printed on them in various fun shapes.

  • How does the print-on-demand service, Printful, help in the process?

    -Printful handles all of the printing, packaging, and shipping for the custom products. They only charge when a sale is made, and there is no upfront cost.

  • On which online marketplace does the creator plan to sell the ornaments?

    -The creator plans to sell the ornaments on Etsy, an online marketplace that focuses on arts and crafts.

  • What are the six important elements that need to be edited before publishing a listing on Etsy?

    -The six important elements are photos, title, tags, pricing, shipping options, and personalization.

  • What is the average price range for ornaments on Etsy?

    -Ornaments on Etsy sell for around $10 to $20 on average.

  • How does the creator handle the situation when a customer requests a refund due to a damaged ornament?

    -The creator contacts Printful's support team to request a replacement at no cost, as they have a policy to replace any products that arrive damaged.

  • What are the challenges faced by the creator regarding the sale of holiday products?

    -The challenges include the short selling period around the holiday, the need to be aware of costs such as off-site ads fee and VAT, and the potential for returns and refunds.

  • What was the total revenue and net income from selling the AI Christmas ornaments?

    -The total revenue was $668, and after expenses, the net income was $35.10.

  • What is the creator's advice for anyone looking to sell holiday products?

    -The creator advises starting months early and being very aware of all costs involved, including fees and taxes that can impact profitability.

  • What was the final outcome of the 30-day challenge?

    -The creator sold a total of three AI Christmas ornaments and earned a net income of $35.10 after covering all expenses.

Outlines

00:00

🎨 Starting an AI Christmas Ornament Business Journey

The video script details the ambitious 30-day challenge of creating and selling AI-generated Christmas ornaments. The journey begins with selecting an AI art generator, specifically Leonardo AI, to produce high-quality images at no cost. The creator plans to sell flat wooden ornaments with AI art and text printed on them. To manage the manufacturing process, the print-on-demand service, Printful, is chosen for its comprehensive handling of printing, packaging, and shipping. The design process involves uploading AI-generated art to Printful's design tool, adjusting the image, and adding personalized text. The platform also facilitates listing the ornaments on Etsy, an online marketplace known for arts and crafts. The video outlines the importance of using effective keywords and tags for Etsy's algorithm, setting competitive prices, and considering the costs of shipping and personalization. Despite the initial lack of sales, the creator remains hopeful for a successful holiday season.

05:02

📉 Challenges and Learnings from Selling AI Christmas Ornaments

The second paragraph delves into the challenges faced while selling AI Christmas ornaments. Initially, there were no sales, which the creator attributes to the early stage of the holiday shopping season. However, as December approaches, the first sales are made, including a new baby ornament and two cancer survivor ornaments, all to customers from the UK. The script highlights unexpected costs such as a 15% off-site ads fee for sales made through ads outside of Etsy and a 20% value-added tax (VAT) charged by the UK government. These additional fees significantly impact the profit margin. Furthermore, the creator experiences a product damage issue, leading to a refund situation. Despite stating a no-refund policy, the potential for a negative review prompts a refund and a request for a replacement from Printful. The video concludes with the final outcome of the challenge, revealing a net income of $35.10 after accounting for various costs and fees. The creator shares final takeaways, emphasizing the importance of starting early for holiday sales and being aware of all costs involved in the business.

Mindmap

Keywords

💡AI Art Generator

An AI art generator is a software tool that uses artificial intelligence to create visual art. In the video, Leonardo AI is used to generate high-quality images of a 'Holly Jolly Santa' with a white background, which becomes a key component of the ornaments being sold. This technology is central to the video's theme as it enables the creation of unique and personalized designs for the ornaments.

💡Printful

Printful is a print-on-demand service that manufactures custom products, including holiday decor and home decor items. In the context of the video, the creator uses Printful to produce the flat wooden ornaments with AI art and text. Printful handles all aspects of the production process, from printing and packaging to shipping, which is crucial for the video's narrative as it allows the individual to focus on design and sales without worrying about inventory or logistics.

💡Etsy

Etsy is an online marketplace that specializes in handmade, vintage items, and craft supplies. It is highlighted in the video as the platform where the AI-generated ornaments are sold. The video emphasizes the importance of Etsy's algorithm and the use of keywords and tags to increase the visibility of the listings. Etsy's integration with Printful is also mentioned, which simplifies the process of listing and selling products.

💡Profit Margin

Profit margin is a financial metric that shows how much profit a company makes for every dollar of revenue. In the video, the creator aims for a 30% profit margin on the ornaments sold. This concept is significant as it sets the financial goal for the venture and influences pricing decisions. The video later discusses how unexpected fees, such as VAT and off-site ad fees, can erode the intended profit margin.

💡Off-site Ads Fee

An off-site ads fee is a charge for advertising products on platforms outside of the primary sales channel. In the video, the creator is charged a 15% off-site ads fee by Etsy for advertising on sites and apps outside of Etsy. This fee was unexpected and significantly impacted the profit margin, serving as a lesson in the importance of understanding all costs associated with advertising and sales.

💡VAT (Value Added Tax)

VAT, or Value Added Tax, is a type of tax charged by the UK government on the sale of goods and services, set at a rate of 20%. The video mentions that VAT was charged by Printful on sales to the UK, which was not accounted for in the pricing strategy. This unexpected tax further reduced the profit margin and serves as a reminder of the importance of being aware of international tax implications when selling products.

💡Personalization

Personalization refers to the ability to customize a product to meet individual customer preferences. In the video, the creator allows customers to personalize the text on the ornaments, which adds value to the product. This feature is used as a selling point to differentiate the ornaments from typical Christmas balls and to cater to specific occasions such as engagements, anniversaries, and retirements.

💡Manufacturing Cost

Manufacturing cost refers to the expenses incurred in the production of goods, which includes materials, labor, and overhead. In the context of the video, the manufacturing cost for the AI-generated ornaments is $27.45. This cost is a critical factor in determining the final price of the ornaments and the overall profitability of the venture.

💡Shipping Cost

Shipping cost is the expense associated with delivering products to customers. The video mentions a shipping cost of $947, which is a significant expense that affects the profitability of the ornaments. Initially, the creator considered offering free shipping but decided against it to avoid increasing the product price, which could make the ornaments seem too expensive.

💡Etsy Ads

Etsy Ads are a form of paid advertising on the Etsy platform that can increase the visibility of a seller's products. The video discusses the use of Etsy Ads to boost sales when organic traffic was insufficient. However, the cost of these ads is also a factor in the overall expenses and must be considered in the pricing strategy.

💡Sales Tax

Sales tax is a tax imposed on the sale of goods and services. In the video, sales tax is one of the expenses that the creator must account for, with a total cost of $864. Understanding and incorporating sales tax into the pricing strategy is essential to ensure that the final price to the customer includes all necessary fees.

Highlights

Attempt to sell AI-generated Christmas ornaments for 30 days to see the financial outcome.

Use of Leonardo AI for generating high-quality images for free.

Creation of flat wooden ornaments with AI art and text printed on them.

Utilization of Printful, a print-on-demand service, for manufacturing and shipping.

Designing ornaments using Printful's design maker and customizing fonts and text.

Selling the ornaments on Etsy, an online marketplace for arts and crafts.

Printful's integration with Etsy for easy listing and sales tracking.

Importance of using good keywords in the title and tags for Etsy's algorithm.

Pricing strategy aiming for a 30% profit margin, with no free shipping initially.

Decision to pass shipping costs to customers due to potential high product pricing.

Allowing personalization of the ornament's text for added value.

Targeting specific occasions with the ornament designs to appeal to a broader audience.

Challenge of no sales initially and the decision to use Etsy ads to boost visibility.

First sales coming from the UK, indicating potential international appeal.

Unexpected fees such as off-site ads fee and VAT impacting profit margins.

Handling a customer complaint and refund situation professionally.

Printful's support in replacing a damaged ornament without cost.

Total revenue and expenses calculation showing a net income of $35.10 after 30 days.

Lessons learned on the importance of starting sales early and being aware of all costs involved.

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