Amazon announced their earnings and stated that book (and all media) sales were flat but they are back-logged on Kindles.  Does this matter to us small online booksellers given our scale is so much smaller then Amazon’s?  Long term I think it matters if the Kindle really becomes an option for people.

People who buy Kindles are either gadget heads who just want the latest thing or they are avid readers who love having a portable library.  The avid readers are likely avid book buyers so the transition of their book sales to electronic form will have a long-term negative effect on online booksellers.  Will this happen soon – not likely but it does not bode well. 

One of the issues with the Kindle is that Amazon is pricing titles on it less than they are a regular copy of a book.  This can have the effect of havingo nline booksellers trying to beat the Kindle price on books.  I am not sure if the inventory and scouting services are showing Kindle prices yet but maybe they should.

Lets not forget that the Kindle is not the only device out there – Sony also makes one and you can even put books on your iPhone.  Sales of the Kindle are one thing but it remains to be seen if people are actually going to adapt to using it as their primary way to read – as we have seen with Amazon recenlty deleting Orwell titles there are several issues with the Kindle that will effect its popularity.

Electronic reading devices are going to have to become a whole lot more popular for online booksellers to throw in the towel

We are less then a month away from one of the busiest times fo the year fro online booksellers.  All the college kids are going back to school soon and looking to save money on books (for more beer maybe).  If you have not alreay – now is the time to stock up on shipping supplies.

If you sell remainders (there are some that specialize in universtity presses) the text book season is when they move – so you could find some titles to buy in preparation for the school year.  Try Great Jones for academic books – the margins on these are not great but if you can find a good title to buy in bulk in might be worth it.

Also – be prepared for lots of questions if your listings are not complete.  Make sure you properly list what edition text book you are selling and if it has highlighting, underlining or margin notes – I make it the first thing in the item description.  Do not sell international editions (or if you do be prepared to be banned by eBay and Amazon as it is against their terms).

More on textbook season soon

How Do Penny Book Sellers Make Money?  I am not sure if they do – if they do make a profit it is minimal a few cents at most.  Lets break down a penny sale on Amazon and see how it works.  Lets assume the seller is a Pro Merchant on Amazon and pays the $40 monthly fee.

Let’s assume the book weighs less than 1lb for shipping purposes

$4.00 – is the amount collected by Amazon – this is the $.01 plus the $3.99 standard shipping charge.

($1.35) – is the amount Amazon takes out of the shipping leaving $2.65.

($2.38) – the amount to ship a book that weighs 1lb or less via media mail as of today.

Potential profit $.27.  Twenty-Seven Cents - not factoring in other expenses such as labels, envelopes, internet, time spent listing and shipping and all the other subscription fees that make up your overhead.  So lets say a penny seller can make $.20 on each sale.  You would need to sell 500 books a day to make $100 a day at that rate – which means you are going to have to have someone help you prep all those books for shipping further eating into your profits. 

 Does this make sense as a business model – not to me.  Understand though – this is their business model – penny sellers are not by accident.  So they must be ok with those lousy margins.  Maybe the penny sellers do not value their time properly and are ok with stuffing 500 envelopes with books for $.20 each.

Sellers of books for a penny are the worst – they clutter Amazon with the junk listings with no descriptions but they do make money and so does Amazon.  Remember – Amazon makes $1.35 for every penny book sold.