19 {{ upvoteCount | shortNum }}
19 {{ upvoteCount | shortNum }}

How are these Amazon sellers doing it??

by djtrillian
16 replies
I'm baffled and I'm curious if some of you sharp, in-the-know and well connected types can answer this for me.

There's a book we'd like to sell to our existing customers. It's called 'The Iodine Crisis: What You Don't Know about Iodine Can Wreck Your Life' by Lynne Farrow.

We spoke to the publisher in the USA and were quoted the equivalent of £9.92 per book by the time they are shipped over here.

Now, here's the baffling part; If I look on Amazon.co.uk there are a bunch of sellers on there selling this book for (starting at) £7.25. There are five sellers that have this book listed at over £2.00 less than what I'm told I can buy them for wholesale!

So the million dollar question is; How are these sellers able to get a title like this so cheap? Surely they are not all stocking mass quantities, it's an obscure book it's not the next '50 Shades' !
#amazon #sellers
  • Profile picture of the author djtrillian
    Wow, I really thought this forum would have a quick answer, guess not :-(
    {{ DiscussionBoard.errors[9025793].message }}
  • Profile picture of the author WillR
    The same reason a supermarket can sell me milk for $1 while the local milkbar charges $2. It's all about quantity. Those selling more books will be able to most likely buy them for much cheaper because of the quantity they are selling.
    Signature

    .


    .

    {{ DiscussionBoard.errors[9025949].message }}
    • Profile picture of the author djtrillian
      Originally Posted by WillR View Post

      The same reason a supermarket can sell me milk for $1 while the local milkbar charges $2. It's all about quantity. Those selling more books will be able to most likely buy them for much cheaper because of the quantity they are selling.
      Nope, the resellers don't stock any books themselves they're selling as an affiliate. My guess is that Amazon is the one making the buys from the publishers but they are only letting affiliates sell via the Amazon platform so it stays a 'closed loop' so-to-speak. I asked one of the sellers about buying in bulk and they said they have no control over the postage!, they don't actually have any books at all they just sell as an affiliate and only on Amazon.

      I think what Amazon does is they say to the publishers "here's the deal take it or leave it" and they get really good pricing because the publishers feel it is sales they wouldn't get otherwise. Then 'associates' / affiliates can sell those titles on Amazon at whatever markup they want but I don't think they can buy them outright from Amazon. I'm going to see what's involved in setting up as a seller just to see how it all works.

      Just for grins I'll see what it calculates the shipping at if I try to order a dozen at a time as a customer. (currently it's £2.80 per book)
      {{ DiscussionBoard.errors[9028491].message }}
      • Profile picture of the author amcg
        I think what Amazon does is they say to the publishers "here's the deal take it or leave it" and they get really good pricing because the publishers feel it is sales they wouldn't get otherwise. Then 'associates' / affiliates can sell those titles on Amazon at whatever markup they want but I don't think they can buy them outright from Amazon. I'm going to see what's involved in setting up as a seller just to see how it all works.
        Amazon's quite a secretive company so second guessing what they do is quite difficult.

        Now, here's the baffling part; If I look on Amazon.co.uk there are a bunch of sellers on there selling this book for (starting at) £7.25. There are five sellers that have this book listed at over £2.00 less than what I'm told I can buy them for wholesale!
        Are these people printing the book in the UK? They could just be buying an ebook and doing it themselves or paying a printer. Otherwise, they might just have better suppliers and wholesalers than you do.
        {{ DiscussionBoard.errors[9028518].message }}
        • Profile picture of the author djtrillian
          [QUOTE=amcg;9028518



          Are these people printing the book in the UK? They could just be buying an ebook and doing it themselves or paying a printer.[/QUOTE]


          That would be totally illegal as it would be a copyright infringement. No one is going to pay to print up copies of this book themselves, as I said before it's not like a super hot item it is a very niche thing.
          {{ DiscussionBoard.errors[9030916].message }}
      • Profile picture of the author KirkMcD
        Originally Posted by djtrillian View Post

        My guess is that Amazon is the one making the buys from the publishers but they are only letting affiliates sell via the Amazon platform so it stays a 'closed loop' so-to-speak.

        I think what Amazon does is they say to the publishers "here's the deal take it or leave it" and they get really good pricing because the publishers feel it is sales they wouldn't get otherwise. Then 'associates' / affiliates can sell those titles on Amazon at whatever markup they want
        It doesn't work that way. Amazon doesn't make deals with publishers so that others can sell a product.

        If you are reselling on Amazon, you made the deal the the manufacturer.
        {{ DiscussionBoard.errors[9028603].message }}
      • Profile picture of the author LABEShops
        Originally Posted by djtrillian View Post

        Nope, the resellers don't stock any books themselves they're selling as an affiliate. My guess is that Amazon is the one making the buys from the publishers but they are only letting affiliates sell via the Amazon platform so it stays a 'closed loop' so-to-speak. I asked one of the sellers about buying in bulk and they said they have no control over the postage!, they don't actually have any books at all they just sell as an affiliate and only on Amazon.

        I think what Amazon does is they say to the publishers "here's the deal take it or leave it" and they get really good pricing because the publishers feel it is sales they wouldn't get otherwise. Then 'associates' / affiliates can sell those titles on Amazon at whatever markup they want but I don't think they can buy them outright from Amazon. I'm going to see what's involved in setting up as a seller just to see how it all works.

        Just for grins I'll see what it calculates the shipping at if I try to order a dozen at a time as a customer. (currently it's £2.80 per book)
        3P sellers are NOT affiliates. Don't know who you spoke to, but I've been a 3P seller on amazon since 2006. Yes, you can get an affiliate account with amazon to sell their products on your blog, etc, but those sellers are NOT sellers that show on Amazon.com. Amazon does NOT contact 3P sellers with any kind of list of what they can sell. Yes, Amazon will get great deals from publishers for usually less than wholesale costs - but they sell them themselves and 3P sellers or affiliates have no knowledge of them or ability to sell them. As a 3P seller, the only thing we get from amazon is the ability to list products on their sites and reach their traffic. Though there are a LOT of restrictions, regulations, and you have to ship within 2 days of the order, etc, in order to remain a 3P seller - and have to pay for the privilege if you want to be a pro seller.

        Unless you are have a pro seller account, 3P sellers cannot control shipping prices - that is true. They are set by Amazon and even for pro sellers like me, books have a set shipping price you cannot change. But I have the books I sell and ship them out when sold - we just must work within Amazon's shipping allotment or up the price of the book to make up the deficient in shipping. Most of us ship first class mail or media mail which is close to the amount Amazon allows you for shipping. Heavier items ship Priority Mail and usually cost over the shipping allowance, so I add a few $$ to the cost of the book.

        3P sellers (3rd party, independent sellers, not Amazon itself) can set their prices at whatever they want. There are some sellers that scout constantly at thrift stores, library sales, remainder sales, etc, to buy books dirt cheap so they can sell them on Amazon. Some will mark them up only $1 or so trying to make money from volume instead of an individual sale. Very few 3P sellers on Amazon are buying books wholesale - I have wholesale accounts with several publishers to sell books on my own sites, but as you have observed, very rarely can you make a profit with them on Amazon due to markups. I have occasionally gotten a great deal from a publisher for an out of print title, etc, but that is rare and if they have remainders, the book probably wasn't a great seller to begin with.

        Some sellers use FBA - fulfillment by Amazon, which means their stock is located at Amazon's warehouse and when that item sells, Amazon packs and ships it for them as a "dropshipper" - but the inventory is owned by the seller, not Amazon. This gives the seller less control over how the item is shipped so can make it harder to make a profit unless they really pay attention to their p&l.

        Hope that clarifies your question.
        Signature

        Owner of LABEShops.com & 20+ Niche Online Stores as well as Scifispace.com and other sites. Recommended Host: Evolve

        {{ DiscussionBoard.errors[9028865].message }}
  • Profile picture of the author mrgoe
    Some use their affiliate commission to decrease the price also, then, instead of earning $3 per sell they will only get $2 profit for every sell.. just a thought of mine.
    Signature
    Worked as a senior editor on ThePricer.org, experienced in financial topics
    {{ DiscussionBoard.errors[9028514].message }}
  • Profile picture of the author djtrillian
    Thanks for the info Labeshops, the baffling thing is that somehow those Amazon sellers are able to easily list this somewhat obscure title and sell it at a price less than I was quote direct from the publisher. So obviously they know something I don't and we have been in the book business a number of years and work with a few printers and UK wholesalers.

    These sellers are getting access to a catalogue somewhere and are able to list hundreds of titles without having actual stock themselves. I need to find out who they're doing this deal with as I actually DO want to stock this book :-)
    {{ DiscussionBoard.errors[9030923].message }}
    • Profile picture of the author LABEShops
      Originally Posted by djtrillian View Post

      Thanks for the info Labeshops, the baffling thing is that somehow those Amazon sellers are able to easily list this somewhat obscure title and sell it at a price less than I was quote direct from the publisher. So obviously they know something I don't and we have been in the book business a number of years and work with a few printers and UK wholesalers.

      These sellers are getting access to a catalogue somewhere and are able to list hundreds of titles without having actual stock themselves. I need to find out who they're doing this deal with as I actually DO want to stock this book :-)
      Some Amazon sellers list popular books and when they sell, order them from other Amazon sellers to have shipped (usually making $1 or less in profit). There are also some book dropshippers usually with close out titles.

      There are tons of different business models (some good, some not) being used on Amazon and other 3rd party marketplaces. Honestly, you just need to find one that works for you and gives you a profit you are comfortable with. Don't worry about competing on price all the time either - I have sold items that I wasn't always the lowest price on, but my feedback score and reputation was higher so I got the sale. Or I had the buy box for that item and got the sale.

      When I started selling on amazon, it was to sell some of the 800+ books I had accumulated over the years - many of which I had never gotten around to reading. So if I sold them for a few $$, I was happy. I've since branched out to other things other than books and have been approved for a few of Amazon's restricted categories (and have less than 50 of those original books left! lol) and Amazon has become a bigger part of my business, though my main sales are on my own sites. You just have to experiment a little and figure out what works for you.
      Signature

      Owner of LABEShops.com & 20+ Niche Online Stores as well as Scifispace.com and other sites. Recommended Host: Evolve

      {{ DiscussionBoard.errors[9031035].message }}
  • Profile picture of the author Hydraman
    Another reason people can sell some books cheaper is that they get the books from some kind of intermediaries who can't sell their stock and have to get rid of it. This is how some new books end up in all sorts of places where they are sold literally for pennies. If you intend to sell books on Amazon you need to look for such places.


    Originally Posted by djtrillian View Post

    I'm baffled and I'm curious if some of you sharp, in-the-know and well connected types can answer this for me.

    There's a book we'd like to sell to our existing customers. It's called 'The Iodine Crisis: What You Don't Know about Iodine Can Wreck Your Life' by Lynne Farrow.

    We spoke to the publisher in the USA and were quoted the equivalent of £9.92 per book by the time they are shipped over here.

    Now, here's the baffling part; If I look on Amazon.co.uk there are a bunch of sellers on there selling this book for (starting at) £7.25. There are five sellers that have this book listed at over £2.00 less than what I'm told I can buy them for wholesale!

    So the million dollar question is; How are these sellers able to get a title like this so cheap? Surely they are not all stocking mass quantities, it's an obscure book it's not the next '50 Shades' !
    Signature
    Amazon Money Manual. Best Step-BY-Step Guide on How To Sell on Amazon.

    Download Free Copy Of How To Make Easy And Quick Money On Amazon PDF Guide.

    This is my true story of how I make money selling books and media items on Amazon.
    {{ DiscussionBoard.errors[9031158].message }}
  • Profile picture of the author hustlinsmoke
    Whats the shipping charge of the other sellers. You know I can sell a book in the U.S, Cheaper than I can buy it charge 3.99 shipping and handling and only spend .80 cents to send it media mail.
    {{ DiscussionBoard.errors[9031167].message }}
    • Profile picture of the author LABEShops
      Originally Posted by hustlinsmoke View Post

      Whats the shipping charge of the other sellers. You know I can sell a book in the U.S, Cheaper than I can buy it charge 3.99 shipping and handling and only spend .80 cents to send it media mail.
      Books have a fixed shipping credit on Amazon - you cannot change the rate charged for shipping.

      And yeah, a paperback book is light and you can spend for $1 or less first class or media mail. Hardback's media mail are usually under $3 to ship media mail.
      Signature

      Owner of LABEShops.com & 20+ Niche Online Stores as well as Scifispace.com and other sites. Recommended Host: Evolve

      {{ DiscussionBoard.errors[9031278].message }}
      • Profile picture of the author travlinguy
        Originally Posted by LABEShops View Post

        Books have a fixed shipping credit on Amazon - you cannot change the rate charged for shipping.

        And yeah, a paperback book is light and you can spend for $1 or less first class or media mail. Hardback's media mail are usually under $3 to ship media mail.
        There is nothing that ships first class for a dollar or less other than letters, certainly not books.
        {{ DiscussionBoard.errors[9031693].message }}
        • Profile picture of the author LABEShops
          Originally Posted by travlinguy View Post

          There is nothing that ships first class for a dollar or less other than letters, certainly not books.
          Sorry, that should have been $2, not $1. Small packets first class mail are around $1.95 or so.
          Signature

          Owner of LABEShops.com & 20+ Niche Online Stores as well as Scifispace.com and other sites. Recommended Host: Evolve

          {{ DiscussionBoard.errors[9033175].message }}
  • Profile picture of the author garyv
    I'm not sure what the game is there. I manufacture several DVDs that I sell on Amazon. They all have sellers that "claim" to have used ones and they're selling them cheaper than I am. I'm not sure how it's possible or what they are doing, because one of the DVDs is a very new one that I haven't even sold yet - So it's impossible that there's a used one out there.
    {{ DiscussionBoard.errors[9032292].message }}

Trending Topics