Selling on Amazon’s FBA Program - Online Selling Coach

24 Pages·2009·0.66 MB·English

by  Preferred Customer

Selling on Amazon’s FBA Program

Nathan Holmquist
www.booktothefuture.com

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CONTENTS

Copyright and Disclaimer….............................................................................3

Introduction……………………………………………………………………..……4

How to profit from penny books………………………………………………….6
Price high to maximize profit 9

How to triple your money for each sale……………….….…………………….10

Advantages of the FBA program………………………………………………...14
Free Super Saver Shipping 12
Amazon Prime 13
One Day Shipping 14
Buyer comfort 16
Statistics 16

Advantages for the Seller……………………………………………………….…16
Vacation
International Shipping
Customer Service

Cost and Time Commitment to FBA…………………………………………….16
Shipping items to Amazon’s warehouse 17
Storage Fees 17
Time Commitment 17

Finding the Books Value…………………………………………………………..18
Scanners

Where to Find Inventory……………………….………………………….……….19

Conclusion……………………………………………….……….…………….……21

Final Note……………………………………………………………………………..22

Frequently Asked Questions….......................................................................22

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Copyright © 2009 Nathan Holmquist

All rights reserved. No part of the publication may be reproduced or transmitted
in any form or by any means, electronic, mechanical, photocopying, recording, or
otherwise, without the prior written permission of the author.

DISCLAIMER AND/OR LEGAL NOTICES: The information presented herein
represents the view of the author as of the date of publication. Because of the
rate with which conditions change, the author reserves the right to alter and
update his opinion based on the new conditions. The report is for informational
purposes only. While every attempt has been made to verify the information
provided in this report, neither the author nor his affiliates/partners assume any
responsibility for errors, inaccuracies or omissions. Any slights of people or
organizations are unintentional. If advice concerning legal or related matters is
needed, the services of a fully qualified professional should be sought. This
report is not intended for use as a source of legal or accounting advice. You
should be aware of any laws which govern business transactions or other
business practices in your country and state. Any reference to any person or
business whether living or dead is purely coincidental.

Nathan Holmquist
5833 Beechwood Dr #C
Loves Park, IL 61111
[email protected]

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INTRODUCTION

“When you sell a man a book, you don’t sell him 12 ounces of paper and ink and
glue – you sell him a whole new life.”

—Christopher Morley

When I first started playing poker, I assumed that the only way to win was with a
good hand. But the more hands I played and the more books I read on the
subject, I had one of those “Ah-Ha” moments: I realized that the quality of the
hand is not always the key to winning. There are other factors involved in the
game, such as the position at the table and knowing your opponents. Once I had
figured this out, I felt I had an almost unfair advantage over the competition. I
could take down a pot with even the most worthless hand by utilizing my position
and my knowledge of my opponents.

The same is true for book selling. Even the most worthless books can be sold at
a profit by utilizing position and knowing the buyers. Fortunately, Amazon has a
new program which allows sellers to capitalize on this. The purpose of this e-
book is to explain the tremendous advantages of the FBA program and how to
use these benefits to:

 Sell more books, CDs, DVDs, and video games.
 Profit from PENNY books.
 Make more money for each individual sale.
 Sell more books, CDs, DVDs, and video games.
 Travel anywhere & make money doing it.
 Find untapped sources of inventory that are compatible with FBA.

This book is full of screen shots because, if you’re anything like me, it is much
easier to learn with visual examples. There are many pictures of actual listings,
sales, and payments to help get the point across.

I hope you enjoy reading this e-book and the best of luck selling books in the
future.

—N.H.

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FULFILLMENT BY AMAZON (FBA)

The first step involved is to join the Fulfillment by Amazon (FBA) program. This
is a program where you ship your books to Amazon’s warehouse, and they store
and fulfill orders on your behalf.

When I first heard of the FBA program, I was extremely skeptical. I did not want
someone else storing, packing, and shipping my books. I wanted to control my
business. But after using the program for a couple months, the benefits far
outweighed any disadvantages.

I will get into the benefits of the FBA program a little later in the book, but first I
want to get to some examples. For more information on the FBA program,
please watch this short video.

HOW TO PROFIT FROM PENNY BOOKS

Let’s get right to business, and learn how to sell penny books for a profit. Once
you have joined the FBA program, it’s time to learn about pricing strategies. With
FBA, you can price books $3.98 higher than the competition, and still remain on
the top of the listings.

How is that possible?

The price listings are based on price plus shipping. When you list at $3.99,
customers do not have to pay for shipping because they qualify for Super Saver
Shipping or Amazon Prime.

 The term “penny book” will be used interchangeably with paperback and mass market paperback
throughout this book. For the purpose of this book, the definition of penny book is any light-weight
book (under one pound) that sells for or around one cent on Amazon’s listings.

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Here is what a listing looks like when you list a penny book at $3.99 with FBA:

The beauty of this is that, unless there are other FBA sellers, you have an
unbeatable position. You are at the top of the listing.

COMMISSIONS
When you sell a mass market paperback for $3.99 you have to pay commissions,
of course.

Here is a cost-analysis break down:

 15 percent commission
 $1.35 Final Value Fee
 $.50 Fulfillment Fee
 $.40 per lb. weight based fee

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So, let’s do the math.

$.60 (15% of $3.99 = $.60)
$1.35
+ $.50
+ $.13 (A typical mass market paperback weighs 6 oz.)

= $2.58 in commissions

$3.99 - $2.58 = $1.41 in profit

Here is a screen shot of a sample payment for a mass market paperback book:

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PRICING HIGH TO MAXIMIZE YOUR PROFIT
I have even tried some crazy pricing experiments and sold used penny
paperbacks for $8.49 and $6.95. These books were James Patterson’s 4th of
July, and J.K. Rowling’s Harry Potter and The Chamber of Secrets (Book 2).

Here is a screen shot of James Patterson’s 4th of July.

ISBN: 0446613363

As you can see the profit after commissions is $5.11 – for a penny book! Using
these methods, it is possible to average two dollars for penny books:

 Minimum Pricing at $3.99
 Pricing high to Maximize Profit

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HOW TO MAKE UP TO 150 PERCENT MORE

If you’re not interested in making small profits on paperback books, these
strategies also work well for books at all price ranges. Here is an example of a
book that sold recently. ISBN number 1571314075

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