Rather than toss the book on the scrap heap, I listed it for $8.00 and sold it in less than three weeks! Since I paid less than $0.50 for the book, I made a very nice profit on the sale.
I checked the Amazon catalog page again today and saw that prices had deteriorated to $0.46 to $3.00 on the first page of the catalog. So my book actually sold off of the second page.
My New Strategy
Consequently, I adjusted my listing system to identify books with Amazon prices above my minimum threshold that can be listed on the first page of their catalog, regardless of the lowest selling price in the same or better condition.
Effectively, this has doubled my merchant fulfilled listings and substantially reduced my COGS per book based on load yield.
If I take this pricing strategy to the second page of the catalog, I imagine I could increase my load yield another 33% - 50%, maybe more. I’ll have to test.
Make More Profitable Sales
When is a penny book not a penny book? When you learn to ignore the low ball sellers and recognize the true value of your inventory.
One way to do that is to look for books that have decent Amazon prices on the first page of the catalog. Just what are “decent prices?”
As a general rule, you want to earn four times your COGS to be solidly profitable.
But in most cases, you don’t want to sell books for less than $5 regardless of how little you pay for them.
You should also experiment with pricing some of your more unusual books off of the second page of Amazon’s catalog.
The idea here is to stay away from the low price leaders. Yes, they’ll get the next sale, but if you’re patient, your book will sell too. And you’ll have the satisfaction of knowing that you’re making more money.
Change Your Mindset
The moral of this story is don’t get locked into a mindset of always having to capture the very next sale. Learn how to sell on Amazon the most profitable way possible.
Sure, when your Amazon prices are higher, sales slow down, but you’re not working for pennies either. And in my opinion, that is the best way to sell books on Amazon.
Use the extra free time to dig up more profitable books either from your existing potential or by doing more scouting.
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Very cool! What else do you sell? How do you ship? Not rated yet
Joe, this is a great article I'm so glad I bought your book! Joanne Not rated yet