When it comes to “Selling on Amazon” you have many choices when picking a business model. Here’s just a handful:
- Retail Arbitrage
- Wholesale
- Private Label
- Merch by Amazon
- Drop Shipping
- Kindle Publishing
- etc.
We’re obviously focused on selling books on Amazon. Much like the different business models mentioned above, books also have different business models. There’s basically 3 main models and all can be very lucrative:
Bulk Sellers – Sourcing is done in bulk by the truckload, or gaylord (big box of 600-1100 books in each box). It usually requires a warehouse and is very labor intensive. The books need to be sorted and ‘duds’ (books with no resale value) need to find their way to be discarded/recycled. Profitable books are either shipped to Amazon, or can be sold Merchant Fulfilled. The best part of this business model is the cost of each books is usually pennies on the dollars.
Local Sourcing – This is one of the cheapest ways to start any Amazon business. Sellers buy books locally (thrift stores, garage sales, library sales, book sales, Goodwills, etc.) and then sell them on Amazon much like the bulk sellers. No warehouse is needed, but be aware of hidden costs (time spent sourcing, fuel costs, and wear & tear on your vehicle). This model is also very labor intensive; often people either love this model or want nothing to do with it.
Online Arbitrage – The ‘Book Flipping’ model and the one we like best. Sellers buy books online, from Amazon.com or other online sites, and then resell those same books via Amazon FBA. This is the book business model that you can work 100% from home and sourcing inventory, at least using our service, is very fast. Sellers have the option of hiring a ‘prep center’ that can receive books on their behalf. Then, the prep center mails those books to Amazon on the seller’s behalf; using this option, sellers never need to touch a book to run their business.
The Benefits of Online Book Arbitrage Include:
Work from home
As long as you have internet connection, you can work this business online. If you plan on receiving the books (i.e., not using a prep center) you will need to pack and ship the books to Amazon.
Less risky than many other Amazon business models
One of the safest ways to source inventory is from a reputable source; and it doesn’t get much more reputable than sourcing directly from Amazon.com. If there’s a problem with a book you sourced, you’re the customer and Amazon will take care of you. In addition to sourcing the risk of ‘getting stuck’ with unsellable inventory is very small. If for whatever reason you couldn’t sell your books on Amazon (e.g., account suspension), you can always sell your inventory on eBay or other online platforms.
Less Competition
If you’ve ever looked into the Private Label model, you probably know about ‘the garlic press’; its like a standing joke because everyone (i.e., experienced sellers) know that that’s not a product they’d ever recommend a new seller to try to start selling because the market is saturated. When it comes to online book arbitrage, many Amazon sellers are not even aware of such a business model exists. Online book arbitrage is definitely a smaller niche when it comes to selling on Amazon and that, in and of itself, is a benefit.
Sourcing is Much Simpler
Sourcing inventory for most Amazon business is a big deal and can very very time consuming. But not so much when using our service. In fact, we’re not aware of any other sourcing tool, for any Amazon business model, that can find profitable inventory faster. Using our service, you’ll find profitable inventory in just a few minutes (really, we’re not kidding, especially if you’re on the Plus or Pro plans that includes Diamond Flips and Platinum Price Drops).
Much Easier Liquidation Options
If, for whatever reason, you ever need to liquidate your book inventory, there’s plenty of other channels where you can sell your inventory.
Predicable Sales Cycles with Textbooks (Christmas is twice a year for book sellers)
Books sell all year long, but textbooks in particular, enjoy a twice-a-year sales boost that coincide with the fall & spring college semesters. The sales boost during these times can be significant.
Fewer Cutthroat Activities Among Sellers
Many of the issues the challenges facing private sellers simply don’t exist with this business models; they include hijacked listings, listing takeovers, return scams, etc.
Using our service, you can test this model yourself Risk-Free. We offer a 14-day free trail with all our plans and you get full access to all our features. Find out more here.