Posts Tagged ‘fulfillment by amazon’

How do I decide what to send to FBA?

Amazon’s FBA service has become hugely popular as of late and rightfully so.  You can’t beat someone else shipping orders for you, accepting returns and dealing with irate customers!  It’s a great service that many have chosen to take advantage of.  However, there are some sellers that either haven’t started yet or are still a little unsure on exactly how it works and exactly what to send to Amazon for fulfillment.  Why are sellers unsure of what to send?  The fees!  Amazon has become known as the place to sell used items.  One of the reasons why is due to the free listing.  Unlike eBay who charges your every time an item gets listed, Amazon only charges you if your item sells.  This means there is absolutely no risk to you if nothing sells.  However, with the introduction of FBA, Amazon also brought forth the inventory fees and rightfully so.  Your stuff takes up warehouse space and incurs labor costs to manage it.  This is why Amazon introduced the monthly storage fee and more recently, the long-term storage fee.  These fees are incurred the moment your book gets listed regardless if it sells or not.  Oh no!

The monthly storage fee is a fee that’s charged on a monthly basis based on the size of your item. To be more specific, it is based on the size in cubic feet and currently it is 45 cents per cubic foot. This fee begins to incur the moment your item is scanned in at Amazon and the total cubic feet of all your inventory is tallied up every day and then tacked on to your total monthly charge. Refer to the link above for more information.  The recent long-term storage fee was introduced because presumably too many sellers were leaving their stale inventory in Amazon’s warehouses and the FBA program was unexpectedly much more popular than what Amazon had intended.  This fee is a whopping $45 per cubic foot!  This fee doesn’t start to incur until your item has been at Amazon for longer than a year and you have multiple copies.  Due to these inventory fees, sellers have become a little more choosy about what they decide to list for sale via FBA.

With the thought of potentially shelling out hard-earned cash without selling anything in return, how do you decide what to send to Amazon to try your hand?  Here are the 2 criteria you need to look out for.

1. High Demand

If you’re in a position where you are charged a fee based on time to sell you better send items that sell and sell quick!  The less time they spend in the warehouse the less money you have to pay.  How do we do this?  I’m glad you asked!  The answer is the Amazon sales rank or “bestsellers rank” as they’re calling it now.  Without going into the technicalities of this, this number is simply a measurement of how well a particular book is selling relative to all other books on Amazon.

The sales rank is a great way to guesstimate how fast your item will sell.  Personally, I choose a sales rank of 1,000,000 or under to send to FBA.  Others have told me they use 500,000 that aren’t quite as daring but I like to live on the edge.  By taking the sales rank this high you will get some books that never sell and decide to sit in the warehouse forever.  These have to be returned to you or destroyed if you don’t want them incurring the dreaded long-term storage fee.

2. Low Lose Weight Exercise/price ratio

This is an important piece to take into consideration also.  Some people will tell you to only send lightweight books like mass market paperbacks and be done with it.  I choose to explore all opportunities for profit and actually dive into the numbers to see the potential of sending 1,2 even 4 pound books to Amazon.  The Lose Weight Exercise is irrelevant if the price that you can get is high enough.  To figure out this ratio, here’s a quick calculation that you can do. Disclaimer: All prices shown will be for media items.  If you want more pricing information you can visit Amazon’s FBA pricing page. Let’s say you’ve got a book with a sales rank of 50,000 that weighs 3lbs.  This is a pretty good sales rank and I’d estimate it would sell within 1 week barring any unforeseen circumstances.  My strategy is to list this book and match the lowest FBA offer which, at the time, is $10.00.  I say, at the time, because by the time that item gets to Amazon and listed it may be $9.75 depending on how volatile the pricing is.  Just remember the price 9/10 times will always go down.  Remember to take that into consideration.

We’ve now got a few pieces of key information.  We’ve got our expected sale price ($9.75), our expected time to sell the item (1 week), our current sales rank (50,000) and our Lose Weight Exercise (3lbs).  We’re now ready to calculate our potential fees.  Let’s list them out.

Expected storage fee: $0.45 / 4 = $0.12 for 1 week’s worth of time

Pick/Pack Fee: $0.60 flat fee

Weight Handling: $0.40 x 3 = $1.20 for our 3lb book

Commission: $9.75 x .15 = $1.46 flat commission

Variable Closing Fee: $1.35 flat fee

Our fees end up adding up to $4.73 giving us a profit of $5.02.  To get a feel for the profit if you decided to list it yourself you could run similar numbers.  Amazon has an excellent FBA price calculator that allows you to run various scenarios with ease.

I hope this has helped you in deciding what to send to FBA.  This was one of my questions whenever I first started with FBA back in March of 2009 and through the years I’ve learned the hard way what not to send.

Why Amazon FBA May Not Be the Wisest Choice

Fulfillment by Amazon is one of the most popular services for the small-time bookseller.  It seems that it has gotten so much attention both from Amazon’s marketing team as well as from guys like Chris Green at FBAblog, Nathan Holmquist at SellFBA.com and countless other people.  I’m included in this list ever since I started writing about my first experiences with FBA way back in October of 2009. My first FBA post got over 36 comments which is huge for this blog.

I’ve raved about the service many times but I’ve never actually written an informative post about the downsides to FBA.  You can’t have your cake and eat it too, right?  In my opinion, there is little information out there about the downsides to using FBA.  For the novice to the service it’s wise to always take the good with the bad before jumping in.  To start off with, I found a blog a few months ago that is solely dedicated on telling you how much FBA sucks.  Coincidentally it’s called Problems with FBA.  It’s not updated that often but there are a few posts that make valid points against Amazon’s service.

Here is a list of my reasons why you may not want to use Amazon’s FBA service.  Take them as you will and weigh how important these issues will be to your business.  Choose accordingly.

1. Higher fees than listing yourself

FBA includes 3 additional fees than if you were fulfilling orders yourself.  These are called the Pick & Pack, Weight Handling and Storage fees.  When selling an item via FBA be prepared to tack on an additional flat fee of 50 cents plus 40 cents/lb and 45 cents/month per cubic feet of space your stuff takes up.  For comparison let’s say you sell a 1 pound book for a dollar.  If you were to fulfill this yourself your Amazon fees would be ($1 * .15) + $1.35 which would leave you with $-1.20.  Add on the $3.99 standard shipping credit they’ll give you and you’ve got $2.79.  You’ve also got postage (~$2.38) plus shipping supplies (~$0.25) costs and you’ve made 16 cents.  However, let’s say this book was FBA and it’s been in their warehouse for 6 months.  If this book sells via FBA you’ve got your $1 sale price – Commission ($1 * .15) – VCF ($1.35) – Weight handling ($0.40) -  Pick/Pack ($0.50) – Storage (~$0.10) which ends up giving you a net LOSS at a buck ten cents.  Now there is the typical add $3.99 to that which makes up for this lost but this is just an example.

2. Considerably less control

I have no problem with this because once the books are off I could care less as long as they sell.  However some book sellers want ultimate control over their inventory.  Be prepared to relinquish all control to Amazon once they’re out of your hands.  Amazon has full reign to give refunds to customers as they please and deal with customers how they please.  You’re feedback is also subject to Amazon’s performance.  They’re pretty good about sending out your orders in a timely fashion and if you do get a feedback that’s Amazon fault they’re supposed to remove it.  However, you are still relinquishing control of your feedback to Amazon.

3. Risk of paying money for books that DON’T sell

The storage fees for your inventory is minimal but it’s still there.  If you’re selling books out of your home then you have no risk of listing 10,000 books if they don’t sell.  On the contrary if you’ve got 10,000 books in Amazon’s warehouse a monthly storage fee of $300-$40 wouldn’t be out of the question.  Only send high demand books to Amazon to prevent them sticking around too long.

4. $3,438 for changing your mind against FBA

I currently have 5,730 books with the FBA service right now.  Let’s say I had a situation to where I wanted to close down my business for good and stop paying the monthly storage fee for all my books.  Since I have so many books in their warehouses it’s gonna cost me over $3,000 for them to ship them all back to me.  This is because Amazon charges you the same cost that it would cost them to pick and pack the book to a customer of another sales channel like eBay.  This is called the multi-channel fulfillment rate.  Currently, it’s 60 cents per item.  As of this writing, Amazon is still waiving the Lose Weight Exercise-handling fee.  However, due to the increase in usage of the FBA program Amazon has been known to significantly decrease the price of removal to clear up space.  I’ve gotten at least 3 emails so far from them notifying of a decreased price of removal if I decide to do so.

Keep the removal cost in mind once you start sending thousands of books their way because it’s not  free ride back.

5. Waiting to see your current inventory

This is one I just came up with while writing this post. I was trying to get my current inventory numbers and was victim to the message “Your data is more than 24 hours old, please wait a minute and refresh again”.  Typically, it takes longer than a minute but not too much longer. It’s a very minor annoyance to me because it always does show back up but if you’re in a hurry then be prepared to wait a few minutes to see your FBA inventory.

How to literally make 10x more profit off of FBA books

UPDATE 11/12/10 – With any new business adventure comes a learning curve.  Since writing this post I have found out that Amazon will not ship to APO/AE addresses nor will it ship to Puerto Rico for multi-channel fulfillment orders.  Unfortunately, I have no way to prevent these orders through my other channels.  To fulfill these orders, I’m having to notify the customer that the shipment will be delayed up to a week and to ask if this is OK.  If they agree I issue a removal request from FBA and get the book sent back to me.  I then send it out myself.  It’s a pain but it’s the only way possible, unfortunately.  I’ve updated each listing to mention if the address is an APO/AE or Puerto Rico address to contact me ahead of time prior to purchasing to confirm because some inventory may be delayed up to a week.

Like any good business owner I’m constantly looking for different methods to make more money and reduce expenses.  I had been using Fulfillment by Amazon for a little over a year now and the program has been a game changer for my book business.  However, since it’s popularity has exploded lately and more mega-sellers have been using the service to bring the price so low on books that they’re taking losses I’ve found books that I sent in only a few months ago still lingering around Amazon’s fulfillment centers chewing up storage fees.

Don’t try to compete with mega sellers!

I decided to change this and dove in this weekend to see which books were eating up unnecessary storage fees and found a single reason why; the price wasn’t low enough.  To prevent my repricer from breaking me financially by offering $2.00 FBA books, I have a price floor that puts a stop to my downward pricing at around $2.75 or so for very lightweight books.  However, I was consistently seeing my competitors pricing the exact same book in the same condition as low as $2.25 making me not even on the first page sometimes!  That’s just insanity!  To just break even on those books the thing would have to weigh 2 ounces!  That’s not even including any storage fees and the cost to ship it to Amazon in the first place.  Needless to say, my price floor was staying even if I wasn’t selling my copy right away.  I’m not in the business just to give money to Amazon.

Now that I had the reason why these books were stagnating in the warehouse I then did some brainstorming as to how I could get these books moving and either make a profit or at least just break even.  Don’t forget you’re going to get charged if you have Amazon either dispose or ship them back to you.  According to Amazon’s FBA pricing page "Inventory Removals and Disposals will be billed at the Multi-Channel Fulfillment rate for Pick and Pack.”  Right now that is 60 cents!  Looking for a cheap way to just purge your FBA books?  Just jack the price so low that you loseWeight Exercise LESS than 60 cents!

If you can’t beat ‘em sell your book somewhere else!

I’d rather not loseWeight Exercise ANY money on these books so there’s got to be a better way.  First, there is no possible way I’m going to sell these books on Amazon any time soon and having Amazon pull them to ship them back to me would cost me 60 cents/book anyway.  The prices have simply gotten way too low for me to be competitive anymore.  The sales ranks are also not the best so I’m not seeing the price ever come up rather continue the spiral down.  Amazon, as a sales channel, is out but what about the option for multi-channel fulfillment?  I had briefly looked at it but never really spent time studying this option.  I would immediately see the increased fees that were charged to send the book off Amazon and forget the idea.  HUGE mistake as you’ll see below.  I had put off truly spending some time looking into this option long enough.  Let’s run the numbers to see how this all comes out in the end as profit.

Being an insanely analytical numbers guy at times I went to my best friend, Excel.  The problem is when I get started with Excel thinking I’m going to just do a few quick calculations it ends up being many, many hours.  These hours are typically filled with adding new calculations, weighing options against other options and generally way overdoing it but sometimes this tendency comes in handy.  This weekend’s brainstorming session went so well I had to share it with you.  I ended up researching nearly every fulfillment fee known to man that Amazon, Alibris, eBay, Abebooks and Half charge when a book sells for both local fulfillment and by utilizing FBA to fulfill orders placed on all these sites.

At the end of the day, the only thing that matters is net profit.

Here’s a screen capture of some of the Excel spreadsheet.  I just wanted to be able to play around with different Lose Weight Exercises and sale prices to compare pure profit after the fees have settled.  After about 10 hours of tweaking this is what I came up with.

fulfillment calculations thumb2 How to literally make 10x more profit off of FBA books

shipping credits thumb1 How to literally make 10x more profit off of FBA books

marketplace fees thumb2 How to literally make 10x more profit off of FBA books

other expenses thumb1 How to literally make 10x more profit off of FBA books

I did have some constraint because I didn’t go as far as to incorporate international shipping options, all of the partner sites on Alibris, etc.  I did make some notes though so maybe one of these days!  I’m crossing my fingers that the data that I do have is accurate.  If you see any different please let me know.

In any case, the whole point of this little project was to see how multi-channel fulfillment by FBA was going to look after all expenses have been paid.  My eyes lit up and it took me a good 30 minutes of not believing the numbers until I decided I’d been a fool not to offer my FBA books on all the other channels I sell on.  Take a glance at the Amazon FBA rows and the big red Xs by the Total Profit.  These Xs mean the lowest 5% of each channel!  You will actually make MUCH LESS if a FBA book sells on Amazon for one simple reason; the shipping credit.  This is how you can sell FBA books and still get that shipping credit!  Priceless!  Just sell your FBA books on eBay, for example, pocket the shipping credit and have Amazon do all the dirty work.  Brilliant!

At the end of the day you’ll see that you can make up to 10x MORE profit from a FBA book by selling it on another site rather than Amazon itself.

Let’s break it down.

Here’s a typical scenario.  In this scenario, I’ve sent a mass market paperback to Amazon FBA that weighs 5 oz.  A customer purchases this book and chooses standard shipping.  Here’s how it would go down on Amazon, eBay and Half.

Amazon

Initial Sale Price = $3

- Amazon Commission = $3 x 15% = -45 cents

- Amazon Variable Closing Fee = -$1.35

- Amazon Pick/Pack Fee for orders under $25 = -60 cents

- Amazon Weight Fee (40 cents/lb) = -13 cents

- Initial inbound shipment cost to Amazon estimated at 32 cents/lb = -15 cents

Total Profit = $0.32

eBay

Initial Sale Price = $3

- eBay final value fee = $3 x 15% = -45 cents

- eBay insertion Fee (Pro Store) = -5 cents

- Paypal commission = (2.9% of sale price+shipping) + 30 cents = -50 cents

- Amazon Pick/Pack Fee for orders under $25 = -60 cents

- Amazon multi-channel standard shipping fulfillment fee = -$1.90

- Amazon Lose Weight Exercise fee (1-15 lbs, 45 cents/lb) = -23 cents

- Initial inbound shipment cost to Amazon estimated at 32 cents/lb = -15 cents

- eBay shipping credit (seller specific) = +$3.99

Total Profit = $3.11

Half.com

Initial Sale Price = $3

- Half.com commission = $3 x 15% = –45 cents

- Amazon Pick/Pack Fee for orders under $25 = –60 cents

- Amazon multi-channel standard shipping fulfillment fee = -$1.90

- Amazon Lose Weight Exercise fee (1-15 lbs, 45 cents/lb) = -23 cents

- Half.com shipping credit = +$2.64

Total Profit = $2.46

Have you digested this yet?  I literally couldn’t believe the profit numbers when I got done but I’ve triple checked everything and kept coming up with the same numbers.  Am I missing something here?  Please burst my bubble if you see any discrepancies.

The overall purpose of this post was not just to woo you with my super Excel skills nor to even make this just about running the numbers for multi-channel fulfillment by Amazon.  It was to have you take a step back and notice what kind of extremely obvious opportunities that may be in front of you if you’d just look!  I had put off doing this for months simply because life got in the way and I always thought I was too busy.  It wasn’t until I started metaphorically bleeding that I specifically set aside family time, this blog and receiving inventory to do this the right way. 

If you see potential in anything at all take it now!  At least allow yourself to look more into it instead of just passing it off.  It’s worth it to investigate any ideas you have to make your online bookselling business a much bigger success than what it is now.  The key to continued success in this ever-increasing competition business of online bookselling is to continually be thinking up new ways to offer quality books to customers by exploring all your options.

Amazon FBA Pricing Strategies to Stick it to Penny Book Mega-Sellers

fbatruck2 thumb1 Amazon FBA Pricing Strategies to Stick it to Penny Book Mega Sellers

Fulfillment by Amazon is a program that has exploded in growth over the past year.  It is amazing how this program began with such a rocky start but now is even being attributed to eBay’s recent poor performance just this August!  FBA, as a whole, has become very successful not only among booksellers but within lots of other niches.  It seems that the idea of outsourcing order fulfillment and taking advantage of incentives that Amazon is giving to FBA participants is proving to be a 1-2-3 punch to eBay and, at the same time, really giving Amazon sellers increased sales and much needed RnR while Amazon’s automation systems take care of all the grunt work.

FBA may be a great program but with any new business process there are always items to take into consideration.  In regards to FBA, the most important item to really spend your time fully understanding is the pricing difference in having Amazon fulfill your orders vs. doing it the old fashioned way and fulfilling orders yourself.  Truly understanding how to price your items when using FBA is critical to achieving the optimum price position on the product detail page, not leaving money on the table and finally how to weigh the increased fees vs. self fulfillment.  Each of these components comes down to setting the best price for an FBA item.  If you’ve done your homework and set the price according to your goals then you will be in the best position for that next customer to come along and snatch up your copy.

Crunch Some Numbers

Each of us probably has different sales goals in mind when listing a copy of a book online.  Some of us look for a quick sale but may sacrifice a little to lower the price while some of us would rather wait for the right customer to come along and choose to price their book low but not the lowest.  There are a myriad of factors that go into picking the right price but really it can all boil down to the individual seller’s goals and how much risk they’re willing to take.  FBA is no exception.  FBA sellers need to take advantage of all the incentives Amazon gives us while still remaining cognizant of the increased fulfillment fees.  Amazon’s not going to do the grunt work for nothing!

There are a few points you need to keep in mind when setting a price goal for your books when selling via FBA.

  1. Fully understand all incentives FBA provides to you AND the customer.
  2. Know each and every fee for every book you send to Amazon down to the penny.
  3. Decide how much financial risk you’re willing to make.

Amazon FBA’s Pricing Incentives

First, I believe the most important part of truly taking advantage of FBA is to first understand every incentive Amazon gives the seller and the buyer as well as applying this knowledge to your pricing structure.  What are these incentives that Amazon provides anyway?  Stick with me..I’ll make it easy on you so you don’t have to go digging through Amazon’s help sections.

The most important incentive to you, as a seller, is how Amazon sorts the prices when someone clicks on either the New or the Used sections of a particular book.  Instead of writing a few paragraphs I decided to put up a quick video to explain the sorting incentive.  Check out this video about Amazon FBA price sorting.  In that video, I touch on the other incentives to buyers which are Amazon Prime customers to get free shipping and the items are also available for free Super Saver Shipping which means any order over $25 will get free shipping.  Pretty cool, right?

What do these incentives translate to?  They translate to more sales for YOU!  When customers can get free shipping it’s a huge plus to them and add the sorting incentive which exposes your books at the very top of the heap simply by keeping your price less than $3.99 more than the lowest competitor is awesome!

FBA Fees

The second point you need to be aware of when setting a pricing goal is the fees.  Yuck!  Unfortunately, you’re going to have more expenses with FBA but if you’re able to understand them and factor them into your bottom line you’re golden.  What are the fees associated with a FBA transaction for us booksellers?

  1. The usual Amazon fees (15% commission and $1.35 variable closing fee)
  2. Pick/Pack at 50 cents.
  3. Weight handling at 40 cents/lb
  4. Storage fees at 45 cents/cubic foot Jan through Sept and 60 cents/cubic foot Oct through Dec
  5. Inbound shipment cost depending on how close you are to the fulfillment center anywhere from 15 cents/lb to 50 cents/lb.
  6. Boxes and any packaging material for shipment to Amazon cost variable.

To get an accurate representation on your profit potential always calculate all the costs associated with FBA prior to sending books their way.  You may get burned if you don’t.  Take a look at this screenshot showing my laziness when not paying attention to Amazon FBA fees.  I’ve used spreadsheets in the past to calculate the total fees but Amazon recently released a pretty useful calculator of their own called the Fulfillment by Amazon Revenue Calculator which does the trick as well.

Are You a Gamblin’ Man?

I’m not a big risk taker.  I’d do terrible in the stock market which is why I hesitated at first to use FBA.  The reason is solely because of the storage fee.  If your book doesn’t sell and sits on their shelf you’re getting charged every month.  This is exactly the reason why I loved every bookselling site besides eBay is because of no listing fee!  However, once I sat down to crunch some numbers the storage fee that Amazon charges is extremely small.  To put that fee into perspective I just checked my latest storage fee for the month and it was $40.28.  At that time, I had around 3,200 books in their warehouse.  Do you think you could find a monthly lease for rental space for over 3,200 books for $40?  I doubt it.  Don’t let the storage fee scare you because it truly is a small price to pay for FBA.

 

Numbers Crunched. Time to Rock n’ Roll! Megasellers Beware!

After you’ve crunched the numbers and felt out your level of “risk” tolerance it’s time to finally set your FBA price.  In this section I’m going to tell you my method and an alternative method I’ve heard about.  There is no right or wrong pricing method here.  This is simply a matter of your preference for quick sales or risking/slower sales but squeezing every ounce of money from an order.

My Personal FBA Pricing Strategy

Personally, I set prices to sell and to sell as quickly as possible.  Once you’re in the game for awhile you’ll soon realize to achieve big sales numbers with non-collectible books it all comes down to quantity.  This is what I concentrate on.  Here is a screenshot of my exact rules for pricing FBA listings.

amazon fba pricing rules Amazon FBA Pricing Strategies to Stick it to Penny Book Mega Sellers

You can see that it’s set pretty aggressively.  Notice the checkbox at the bottom called “Include shipping rates in competitive pricing logic”.  This is Monsoon’s way of saying “we know this is an FBA listing and we know how to play the $3.99 strategy referenced above”.  Most repricers will have a FBA function where they will automatically add $3.99 to your price because they know every FBA seller worth their salt will take advantage of the sorting incentive.

This strategy is working for me because since I’m able to source books so cheaply ( < 3 cents/book) this means I can remain competitive and profitable much longer than someone that has to pay much more for his inventory.  Another example of the beauty of thinking outside the box, people!  SIDE NOTE: Keep your eyes peeled for the exact source I use and dozens of other virtually unknown sources in an upcoming eBook via the email list.

Ignoring non-FBA Listings Completely

I’ve got a friend.  We’ll call him, George.  George has tried to convince me over many emails that I am leaving money on the table with my strategy.  He is a firm believer in ignoring non-FBA listings completely in his competitive pricing strategy and only acknowledging Amazon itself as a competitor.  This strategy has it’s definite advantages and according to George, he’s lost count on the number of times he’s sold books for over $10,15 or even $20 when the book could be considered a “penny book”.  The reason?  He’s taking like new books, ignoring everyone else and undercutting Amazon by a little bit.  I can see the reasoning and it’s very tempting to do.

Why are people buying books from George at such insane prices when they could get the book for much, much less?  Refer to my video about incentives.  He’s laser targeting Amazon Prime customers and customers taking advantage of the free Super Saver shipping.  Think about this for a second.  Let’s say you’ve paid $79 for your yearly subscription to Amazon Prime and you’ve gotten accustomed to the “right now” mentality.  Prime members always get free 2-day shipping.  Quick.  Fast.  Right now.  Me want!  If you were accustomed to getting your orders super-quick all the time for free would you want to hassle with a 3P seller shipping you a separate order via USPS media mail shipping?  Prime customers are willing to spend a little more to get it Amazon-quick.

Also, put yourself in the shoes of a customer that has $15 worth of stuff in his cart.  He’s eyeing a book that has 10 offers for a penny+$3.99 shipping but a FBA offer that’s $10 with FREE shipping AND fulfilled by the name that has seemingly sealed the “super quick and reliable” image in their brain; Amazon.  Sure, it’s $6 more but this customer would spend more than that on lunch tomorrow.  He thinks, “What the hell?  Let’s just get it here quickly and all in one order.”

Finally, most of these books are in like new condition.  Like new and new are pretty synonymous and I would bet a Prime customer wouldn’t care if a remainder mark were on a book or the book had a few minor scuffs.  If you use this method, pay close attention to condition.  You can try to compete with a $29.99 brand new copy from Amazon with your $28 good copy but I really don’t see someone throwing you a bone.

Tweak, Monitor.  Tweak, Monitor.  Bingo!

Once you have that pricing strategy setup don’t just let it sit there!  Times changes and so do sales.  Periodically check to see which books are selling, which books are sucking storage fees and try to pin down any trends that you see.  For example, if you’re noticing a number of books not pulling their Lose Weight Exercise and just relaxing on your dime, drop their price manually instead of waiting for the repricer to do it.  Storage fees aren’t that much but they will sneak up on you if you get lazy.  Stay active with your FBA listings!  You’ll find that it’s so easy you’ll just forget about your FBA listings once they leave you.  Don’t!  Pay attention and tweak to achieve maximum efficiency.

Fulfillment by Amazon has done a lot for my business and thousands of other businesses as well.  By taking the time and performing some due diligence with FBA prior to starting will do yourself a big favor.  Tally up all costs, book Lose Weight Exercises, time to process a shipment and other important metrics to determine what’s best for your business.  Most importantly, remember there is never a “right” price.  You can choose whatever price you’d like with FBA.  Just remember to be aware of your sales goals and consistently monitor your sales activity to ensure you’re meeting your own goals.

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Amazon FBA (Fulfillment by Amazon): A Boost to Your Bottom Line

amazon distribution center 509x335 Amazon FBA (Fulfillment by Amazon): A Boost to Your Bottom Line

Amazon Fulfillment Center

I first started using FBA back in October and wrote a quick review post about it.  At the time, I didn’t know what to think of it.  I was excited at the idea of sending books somewhere and never having to touch them again or deal with customer service issues.  Little did I know that this new concept of selling books would be such a success for me…

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