If you are an online bookseller you are going to need an inventory management system such as The Art of Books.  What should an inventory management program do?

• Keep a database of all your current inventory and all past sales
• List your books on all the marketplaces you sell on – not all systems work on eBay and other sites
• Help you price your inventory and re-price as needed – this can be a pain
• Allow you to track your cost of goods sold and postage expenses
• Help you avoid double sales by quickly removing sold books from all the markets
• Have responsive customer service
• Use servers that are reliable
• Integrate easily with your shipping software such as Endicia
• Be reasonably priced

I am likely missing a few things but an inventory management system should be robust.  There are many companies which provide these services and the pricing for them is all over the map.  I currently use The Art of Books and have previously used Fillz and Amanpro.  I have looked at other services but found their pricing to be nuts for the amount of books I have listed (approximately 2500).

I think The Art of Books is the best service if you are selling on multiple marketplaces.  Their re-pricing is not the best but I can muddle through it.  I used Fillz but it had many issues integrating properly with eBay and their re-pricing was also not user friendly.  Amanpro is fantastic but it only works with Amazon – it think Amanpro probably is so good is because it is a database that is stored on your own computer.  I loved Amanpro but needed to grow my business beyond what it was capable of offering.

A lot of the inventory management providers have slick web-sites with all sorts of claims and neat flowcharts but nothing on the backend.  The Art of Books website looks amateurish (relatively speaking) but it offers excellent value.  I found their customer service responsive (and helpful!!).  The instructions on how to use it were accessible and not hard to follow – so if you are listing on more markets than just Amazon they are the way to go.

NO .  Online booksellers have access to the largest websites in the world – sites like Amazon and eBay so you think you will put together your own store and sell your inventory there.  The logic of having your own website is that somehow you will save on all the fees & commissions the other sites charge you.  Of course you will need to get your website set-up (fee) find a webhost (monthly fee) and get people to visit your site (advertising costs) all to save the commission that Amazon would charge you. 

If you average selling price for a book is between $10 and $20 the commission from Amazon would be $1.50 plus the cut of the shipping they take.  So you could save almost $3 a sale.  That is pretty good economic sense to having your own website but that assumes you can charge the same as Amazon.  People like Amazon because their brand is strong, the selection is tremendous and their customer service is excellent.  Your webstore – people have no idea.  So why buy a book from you if they can get the same book (possibly yours) from Amazon.  Maybe you will get sales on your website if you offer lower prices and cheaper shipping thus ruining the economic argument of having your own site.

Pricing aside you may want your own site because you deal in a very specialized inventory – be it first editions, signed books, or a niche topic.  You want to be able to distinguish your books from your competitors by offering fuller descriptions and more info on the provenance of the book – these are all thing a webstore can do – but so can ebay.  Here though the economics offer more benefit given that first editions and other collectibles sell for more. 

Setting up your website and getting your inventory on it is not that diffucult.  Amazon, eBay and Chrislands all offer to set up site for you.  I think eBay’s Prostores are the best.  The hard part is making sure the buyer has a good experience and that you are building your brand as a quality bookseller.  This takes content.  Don’t just list your books – tell your story, tell about the books, the authors, talk about different genres – anything that will get people coming back to your site.  All of this is time consuming and hard work but neccesary.  Throwing your inventory up on your own website will be a waste of time and money if you do not do it right  which may mean spending even more money to hire third parties to help.

Once again – if you are just starting out in online bookselling do not go out and set-up your own webstore.  Start on Amazon, then Alibris , then eBay and slowly build up your experience.  Check ot my guide for more info – the link for it is over on the right column under products I recommend (it is the bookselling guide).

Book scouting with a PDA and a Scanner have become the norm for most booksellers.  This means that anyone with a scanner is subscribing to some service which provides them with the data on the book prices.  All of these services are subscription based and charge a monthly fee.  There are many companies offering the scouting service so which one to get?  I have used a few of them and generally lean towards the least expensive service that seems to not have too many people complaining about their service.

Prices generally range from $9.95 a month for Scoutpal to $50 a month .  There are likely other services which are even more expensive.  There is not really a lot different between all the services – they get their pricing info from the same place – Amazon.  They all show you sales ranks and condition.  Some provide a downloadable database (which is great) of the price info so you do not need an internet connection.

My recommendation is go with Scoutpal – they have good service and the info they provide is the same as everyone elses.  Why would you pay more for something that is the same?  I was paying $30 a month for ASellerTool and they were great – early on I had a bunch of questions and they responded asap but eventually I realized I was just paying them an extra $20 a month for no reason. 

If you are new to online bookselling do not pre-pay for a whole year of a scouting service regardless of the discount.  You could end up with a service you do not want and be stuck to it.  It is not hard to switch services so shop around first but start at the lower price point and see if it fits your needs first.

Yes (and no).  If you are just starting out in selling books online hold off in buying some expensive package of a PDA with a scanner and a monthly subscription to a service like Scoutpal.  You may get all gung-ho about your new venture of selling books and go out and spend hundreds of dollars on an PDA set-up.  Slow down…. you will eventually want to get a scanner but before doing so make sure you have some of the basics of online bookselling down first.  Get a feel for the process of listing books you already have and dealing with the shipping side of the business before you invest larger sums into your business. 

 The short version of this post would be don’t make larger investments in your business until you are sure it is something you are going to commit to.

The majority of online booksellers will need to eventually get a scanner and a handheld especially if your main inventory sources are places talked about in the previous post.  There are several experienced guys at every sale I go to (always first in line) who do not use scanners and do not deal with the general stock at the sales.  They go straight to the antiquarian books and are very knowledgeable.  They work at brick and mortar stores that specialize in first editions and other niches.  Scanners are of no use to them and they always leave sales with plenty of books.  If you are going to specialize in a specific niche and really know your stuff then you can likely save the expense of a scanner (and the monthly subscription fees).

I have a Dell Axim with a scanner that I no longer use and I cancelled my subscription to my scouting service.  I no longer need them though I am still a full time online bookseller.  I just have different sources of inventory where I no longer need to go to library sales. 

I found having a scanner and scout service were invaluable for the time I used them.  They helped me make thousands of dollars by finding books I had no idea were valuable and they also saved me much money by helping me avoid books I thought were good.  If you are in the market for a PDA and a scanner shop around on eBay first before buying a package from one of the scout services – you will be able to save a bunch of money that way.  I will talk about some of the scout services in a future post.

Where on-line booksellers get their inventory is on of their most closely guarded secrets.  If someone discloses where they get their books on a forum they are flamed by all the other booksellers – the comments with all their vitriol are hilarious.  The funny thing is all these booksellers get their books from the same places for the most part- such as library sales. 

If you do your homework you can find many sources of books that are not as widely used.  I am not going to disclose all my sources (I do that in my book which is linked over to the right under products I recommend) but here are some obvious places to find books to sell on-line:

• Library Sales – you and everyone else will be at these.  Go early, line up and run like you just been called down on the Price is Right.  You can find lots of stuff at these but to be honest I almost never go to library sales any more.  Too much hassle.
• Craigslist – put up an ad saying you buy books
• Goodwill, Salvation Army and all the thrift stores.
• Yard, Garage and Estate Sales
• Your friends, family and yourself.

None of the above are too big a secret but they can be a start for slowly growing you inventory.  The problem I have with all of them is there is too much uncertainty as to what type of books you will find.  I have stood in line for a few hours (with a hundred other people) at a library sale, paid my $10 -$15 bucks to get in only to find tons of paperbacks.  I guess using the above as my book sources is just too inefficient for me.

In future posts I will discuss some other options (some I have advertised on this site) and also talk about how to make the most of the above sources.