Selling books online can be very profitable. When individual sales are quickly glanced at the potential for profits can seem great.  I have bought many books for $1 and sold it for $30 or more many times – very fat profit margins.  The thing of it is that becasue I do everything online I can lose track of my margins.  Managing your bookselling venture like a small business is important. 

I sell my books online and do almost all of the back office business online.  This creates a very simple business to run but because so much of the processes are done online.  My books and envelopes are the only real things I store.  I manage my overall business on a cash basis but keeping track of the details is important.  Here are things that are easy to lose track of in terms of really figuring out what your margins are:

• Marketplace monthly fees – Amazon is straightforward but eBay is variable
• Commissions taken per book by the marketplaces
• Postage – Amazon takes another chunk here
• Cost per envelope
• Monthly fees of Endicia
• Monthly fees of Inventory Management System – in my case The Art of Books
• Cost of books

The list can go on and it becomes depressing how much others make when I sell one book – everyone gets their cut.  So when I sell a book for $10 that I bought for $1 I am not making $9 (or even $8).  This is one reason it is some important to figure out your margins as you can figure out what books are not worth selling.

Keep track of everything, work the numbers and focus on the bottom line and you should see your profits increase.  Regulary shop around for new vendors.  Is your inventory management provider the best for the money.  How about your envelope provider? Ink toner?  All of these eat into profits.  Spend time shopping and save.

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.