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. They use Leonardo AI to produce high-quality images and print them on flat wooden ornaments through Printful, a print-on-demand service. The ornaments are designed to target specific occasions and are listed on Etsy, an online marketplace for arts and crafts. Despite facing challenges such as the lack of initial sales, unexpected fees like VAT and off-site ads charges, and a customer request for a refund, the creator remains optimistic. They learn the importance of starting sales early, being aware of all costs, and the impact of Etsy's algorithm on visibility. By the end of the challenge, they've sold three ornaments, but due to various fees and costs, their net income is just $35.10. The video offers a candid look at the trials and lessons learned in selling holiday products online.

Takeaways

  • 🎨 Use an AI art generator like Leonardo AI to create high-quality images for free.
  • πŸ› οΈ Print on demand service, such as Printful, handles manufacturing, printing, packaging, and shipping.
  • πŸ“ Design custom ornaments with Printful's design maker, adjusting size, removing background, and adding text.
  • πŸ›οΈ Sell on an online marketplace like Etsy, which focuses on arts and crafts and is popular for holiday gifts.
  • πŸ” Use Etsy's search suggestions and keyword research tools to find good keywords for your listings.
  • πŸ“ˆ Price your ornaments competitively, aiming for a 30% profit margin and be aware of additional costs like VAT.
  • πŸ“Έ Use mockups and Photoshop to create appealing product photos for your listings.
  • πŸ“ Allow for personalization in your product offerings to increase value and customer engagement.
  • πŸš€ Start your holiday product sales months in advance to account for the time it takes for listings to become visible in Etsy's algorithm.
  • ⏱ Be aware of additional fees like off-site ads fees and VAT, which can significantly impact your profit margins.
  • πŸ’Έ Consider the potential for refunds and damaged goods, and have a plan in place to handle these situations promptly.

Q & A

  • What is the main challenge the author is undertaking in the video?

    -The author is attempting to sell AI-generated Christmas ornaments for 30 days and document the entire process from art generation to manufacturing and advertising.

  • Which AI art generator does the author choose to create the images for the ornaments?

    -The author chooses Leonardo AI, a generator that can produce high-quality images for free.

  • What type of ornaments is the author planning to sell?

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

  • How does the author intend to handle the manufacturing, packaging, and shipping of the ornaments?

    -The author uses Printful, a print-on-demand service that takes care of all the manufacturing, packaging, and shipping processes.

  • On which online marketplace does the author decide to sell the ornaments?

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

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

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

  • Why does the author decide not to offer free shipping for the ornaments?

    -The author decides not to offer free shipping because covering the cost by marking up the product's price would make the ornaments seem too expensive.

  • What feature does the author add to the ornaments to increase their value?

    -The author allows the text of the design to be personalized, which adds more value to the product.

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

    -The author contacts Printful's support team, who agree to send a replacement at no cost, thus avoiding a negative review and resolving the issue.

  • What are the final results of the author's 30-day challenge in terms of sales and net income?

    -The author sold a total of three AI Christmas ornaments, earning a total revenue of $668. However, after expenses, the net income was $35.10.

  • What are some of the key takeaways the author shares for selling holiday products online?

    -The author advises starting sales months early, being aware of all costs including off-site ads fee and VAT, and pricing products appropriately to maintain profit margins.

  • What is the author's strategy for targeting specific occasions with the ornaments?

    -The author creates ornaments that celebrate specific occasions like engagements, anniversaries, retirements, and life milestones, aiming to appeal to customers looking for unique Christmas presents.

Outlines

00:00

🎨 AI Art for Christmas Ornaments - The Journey Begins

The video script introduces the creator's 30-day challenge to sell AI-generated Christmas ornaments. The journey includes using Leonardo AI to produce high-quality images for free, such as a 'Holly Jolly Santa.' The ornaments are unique, being flat wooden with AI art and text in various shapes. The print-on-demand service, Printful, is utilized for manufacturing, which handles printing, packaging, and shipping. The creator plans to sell these ornaments on Etsy, an online marketplace known for arts and crafts. Printful is integrated with Etsy, simplifying the listing process. The script outlines the steps for designing the ornaments, including adding text and choosing fonts. Six key elements for listing on Etsy are identified: photos, title, tags, pricing, shipping, and personalization options. The creator also discusses the importance of starting early for holiday sales and the challenges of holiday product sales, such as the short selling window and the need to wait for the next year to sell again.

05:02

πŸ›οΈ Challenges and Learnings in Selling Holiday Products

The second paragraph details the challenges faced while selling AI Christmas ornaments. Initially, there were no sales, but the creator remained hopeful that the situation would improve as December approached. The importance of targeting specific occasions with the ornaments is highlighted, as many people buy them as gifts for events like engagements and anniversaries. The script also discusses the decision to activate Etsy ads to boost sales. However, the creator encounters unexpected fees, such as a 15% off-site ads fee and a 20% VAT charged by the UK government on goods and services. These fees significantly impact the profit margin. Additionally, the creator experiences a product damage issue and outlines the steps taken to address it, including contacting Printful for a replacement. The video concludes with the final earnings and takeaways, emphasizing the importance of being aware of costs and starting sales well in advance of the holiday season. The net income from the challenge is revealed to be $35.10 after accounting for all expenses and fees.

Mindmap

Keywords

πŸ’‘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, which are then used to design ornaments. This technology is central to the video's theme of selling AI-generated art ornaments.

πŸ’‘Printful

Printful is a print-on-demand service that manufactures custom products, handles printing, packaging, and shipping, and only charges when a sale is made. It is a key component in the video's narrative as it enables the creator to sell custom ornaments without upfront costs or inventory management.

πŸ’‘Etsy

Etsy is an online marketplace focused on arts, crafts, and unique items. It is the platform where the video's creator plans to sell their AI-generated ornaments. Etsy is significant as it provides a marketplace for the creator to reach potential customers interested in holiday gifts and unique decorations.

πŸ’‘Mockups

Mockups are pre-made images that can be used to showcase products in a realistic setting. In the video, the creator uses mockups provided by Printful to create a thumbnail image for their listing, which includes the ornament in front of a Christmas-themed background to enhance visual appeal.

πŸ’‘Keywords and Tags

Keywords and tags are essential for search optimization on platforms like Etsy. They help the listings appear in search results when potential buyers look for items similar to the ones being sold. The video emphasizes the importance of using popular and relevant keywords related to the ornaments and their designs.

πŸ’‘Profit Margin

Profit margin is the percentage of sales that represents the profit. The video's creator aims for a 30% profit margin on each ornament sold. This financial goal is crucial as it determines the pricing strategy and the potential success of the venture.

πŸ’‘Personalization

Personalization in the context of the video refers to allowing customers to customize the text on the ornaments. This feature adds value to the product and makes it more appealing for gift-giving, as customers can request specific names or messages on the ornaments.

πŸ’‘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 surprised by a 15% off-site ads fee charged by Etsy when their listings are advertised on external sites, which impacts their profit margin.

πŸ’‘VAT (Value Added Tax)

VAT is a tax charged by the UK government on the sale of goods and services, set at 20%. The video's creator did not account for VAT in their pricing, leading to a reduction in profits when they made sales to the UK. Understanding and accounting for regional taxes is highlighted as a critical aspect of international sales.

πŸ’‘Refunds and Replacements

Refunds and replacements are part of the customer service process. The video describes a situation where a customer requests a refund due to a damaged product. The creator must decide whether to issue a refund to maintain a good reputation, despite having a 'no refunds' policy listed on their product page.

πŸ’‘Net Income

Net income is the final amount of profit after all expenses, taxes, and fees have been deducted from the revenue. In the video, the creator calculates their net income after accounting for sales tax, manufacturing costs, shipping, VAT, Etsy ads, off-site ad fees, transaction fees, processing fees, and listing fees, revealing the financial outcome of their 30-day challenge.

Highlights

Attempt to sell AI-generated Christmas ornaments for 30 days

Use of Leonardo AI for generating high-quality images

Creation of flat wooden ornaments with AI art and text

Utilization of Printful for print-on-demand services

Designing ornaments with Printful's design maker and adding personalized text

Sales platform choice: Etsy, an online marketplace for arts and crafts

Integration of Printful with Etsy for easy listing

Importance of good keywords for Etsy's algorithm

Pricing strategy aiming for a 30% profit margin

Decision not to offer free shipping due to potential high costs

Personalization option for added product value

Targeting specific occasions with ornament designs

Challenge of no initial sales and the importance of timing

Use of Etsy ads to boost visibility

First sales to the UK and the impact of VAT and off-site ads fees

Handling a customer complaint and the importance of product quality

Printful's support in replacing damaged goods

Financial breakdown of the challenge including revenue, expenses, and net income

Lessons learned on cost awareness and pricing strategies

Total sales and net income revealed at the end of the challenge

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