Why Are There Penny Books on Amazon?

E book sellers that listing books for a penny on Amazon both do that for a revenue albeit a really small revenue or to easily dump lots of further books hoping to recount for a small portion of their preliminary funding.  If they’re merely eager to do away with further books which are remaining of their warehouse, they’ll simply do that by primarily giving freely their books.  They are going to lose cash however no less than they will not be shedding as a lot as what they might by letting them sit in a warehouse someplace.  These sellers are sometimes very giant quantity sellers that rent individuals to pack and ship these books and do it on a mass scale.

These sellers have plenty of issues which have to have a look at earlier than deciding to listing and promote books at a penny.  These concerns are value and weight of the e book.  The vendor might want to consider packaging prices, transport prices, Amazon commissions, stock acquisition and the price of labor to pack and ship the e book.  They can even have to contemplate the burden of the e book as a result of even with mailing reductions if the e book weight 10 lbs, there is no such thing as a solution to make any cash in any respect!  Within the subsequent few paragraphs, we’ll think about the sellers which are making an attempt to make a revenue and never on the vendor wanting to easily dump some stock.

Price

A vendor has to first take a look at the value that they’ll purchase the e book at which can be their stock value.  With a purpose to make any revenue in any respect, the vendor must primarily get the e book totally free someway or a number of cents so let’s assume that the vendor obtained the e book from a library that was giving books away they did not need anymore.

The second value a vendor wants to have a look at is the packaging value.  I can purchase a bubble mailer in portions of 100 at round $0.33/piece.  Think about an enormous mega-seller shopping for tens of 1000’s of bubble mailers.  My finest is the associated fee could be a nickel or much less.

A third value could be Amazon commissions.  Amazon expenses 15% fee on the value of the e book which might be nothing on a penny e book.  That value is out.  Nevertheless, additionally they cost $1.35 on all books most likely due to that very cause so the full quantity given to Amazon is $1.35.  They clearly pay for the Professional Service provider account with Amazon so they do not incur the $0.99/e book cost.

One other value could be the transport value.  That is the place the mega vendor shines.  They will get a bulk mail low cost from the USPS.  Test USPS.com for his or her “bulk mail” charges.  These reductions might be as deep as a greenback off every e book, which is appreciable contemplating media mail is already very low-cost.

The final value would merely be labor.  They should pay their staff to truly do the work of selecting, packing and transport or purchase a machine to do it for them.  Sort into Google “automated packing” and you will note what I imply.

Weight

Weight is the ultimate consideration they’ve to have a look at as a e book that weighs just a few ounces might be despatched top notch mail from the USPS and could have a substantial value totally different in transport value.

Instance

BIGSELLER is ready to get a e book totally free from a library and the e book solely weighs 8 ounces.  BIGSELLER desires to listing this e book on Amazon and the bottom value goes for a penny.  BIGSELLER decides he desires to do away with this e book so he lists for a penny.  BIGSELLER makes the sale and Amazon credit him $3.99 for transport and the complete value at $0.01 which makes BIGSELLER $4.  Amazon has to have their minimize so Amazon takes their obligatory $1.35 and 15% fee on a penny which is nothing that provides BIGSELLER $2.65 for this e book 에어비앤비창업.

BIGSELLER buys 1000’s of bubble mailers from BIGSUPPLYCOMPANY for a a nickel, packing tape for $0.50/roll and printer paper for the packing slip shut to at least one cent.  Throw within the bubble mailer, one strip of tape and a sheet of copy paper and that can be about 7 cents so their complete packaging materials value is $0.07.

BIGSELLER additionally ships out a whole bunch if not 1000’s of books at a time and the USPS loves them for it so they offer BIGSELLER an enormous low cost on the already low-cost media mail price, which, on a 8 oz e book is about $1.50.

BIGSELLER additionally has an automation machine that packs 1,000,000 books a day so that is merely one other fast pack for it.

Let’s recap these prices.

Income: $4.00 – Amazon Fee: $1.35 – USPS Delivery: $1.50 – Packaging Materials: $0.07 – Stock Price: $0.00.

If you happen to do this calculation, you may see that BIGSELLER got here out with a revenue of $1.08.  This is only one easy instance of how a vendor might make a revenue.  There are a whole bunch of various variables that go into it, however you get the idea.

I hope that this defined a little bit bit about why there are books promoting for a penny on Amazon.  There’s hardly no revenue to be made promoting books on this trend, however it’s important to suppose by way of a whole bunch or 1000’s or books, a whole bunch of {dollars} might be racked up in a short time.