Started Mary Kay and bought $3000+ product. Never sold anything. Only kept $200 or less for personal use. Do I report it as a business or as a hobby for a deduction?

I am trying to make the most back as after selling back (returning) some of the product for a 10% loss, a loss about $500 at least. Plus some of the product was not able to be returned as it was a "category 2" product which they don't refund for.

What is the best way to file this? As a business or a hobby? I am planning on using TurboTax Deluxe.