Profitable Niche Markets on Amazon how to Make Money on Amazon
It is much more difficult in 2011 to make money selling used books on Amazon than it was five or even a few years ago. For one thing, the Amazon used book marketplace is now flooded with individual sellers who are listing their own collections at prices that barely recover packaging and shipping costs. True, there are a few niche book markets in Amazon that continue to sell well. However, before laying down cash for an inventory of thousands of books from yard sales and library sales to list on Amazon, be aware that the potential for losing money on such an investment is very real. That said, here are some pointers from one who has sold used books and other media on Amazon for years that will enable you to earn money from Amazon.
Identify profitable niche markets
1. Used college textbooks.
Used textbooks that were published in the last fifteen years are almost always a good investment if they can be obtained for only a few dollars from yard sales. Textbooks do not have to be the most recent edition to sell well; many students in this economy get by with older editions of a text in order to cut college expenses. However, one should be selective if possible and choose only those books in at least Good condition. On Amazon, Good condition means that all pages are intact and securely bound, and the cover is clean and the spine is also in good condition. Highlighting or writing in the book is acceptable as long as it is limited.
Amazon provides annual lists of the top 100 selling textbooks for your information, as well as a blog of useful tips for selling textbooks. The most important thing to remember when selling textbooks is that they are generally HEAVY, which means that they can be shipped via media mail, parcel post, or priority mail. Media mail is the cheapest "standard" shipping method for textbooks, but it can take up to two weeks for the post office to deliver a media mail package, especially if it is being shipped cross country. These books should be weighed with a postal scale before deciding whether to offer expedited shipping, since the actual cost of shipping a heavy textbook will often exceed the Amazon shipping fee.
2. Children's books in Very Good or Like New condition
Many (though by no means all) used children's books sell surprisingly well on Amazon, for less than the cover price. These books should all be in excellent condition, with no writing or marks, no torn pages, etc.
3. Nonfiction books in Very Good or Like New condition
It is impossible to list specific categories that tend to be more profitable than others; there are many. However, stay away from cookbooks and household maintenance books, which tend to be flooded resale categories.
Paperback novels are books that lose money on Amazon, period. Most are available at a selling price of only $0.01, plus a shipping fee of $3.99. Unfortunately, media mail postage for that 9 ounce book will take $2.38, a padded envelope will take $0.25 (bought in bulk), and Amazon will take a fee of $1.35 plus $0.99 (for all but Pro Merchants). Clearly, one cannot make money when one's fixed costs are already above the revenue received from a sale.
Other profitable niche markets on Amazon
1. Recent video or audio releases
Recent DVD movies and music CDs can sell well, and "vintage" music CDs in very good condition can sell surprisingly well.
2. Video games
Some video games for PS2, PS3, XBox, and Wii are good sellers, but check the listings first before investing more than a couple of dollars.
Other tips for selling on Amazon
Pricing
It is a dreadful mistake to underprice competitor products on Amazon. Many high-volume merchants have computer programs that automatically reprice their items to the lowest price listed for a particular product; lowering prices in this way will run one's profits quickly into the loss column if one is not alert to this fact. Instead, be honest with condition descriptions and price an item at the SAME price as that of an item in comparable condition. Let good feedback, professional packaging, and quick shipping be the draw that leads a customer to your product; not lowest price.
Inventory
Remember, storage for books needs to be in a climate-controlled environment or books yellow and age rapidly. It is useful to have a designated area for packaging and applying postage (that can now be printed directly from the Amazon website, a significant advance). Thus, before undertaking an Amazon business be sure that adequate space is available. There is no minimum inventory required for selling on Amazon, but in my experience an inventory of a few thousand well-chosen items will yield sales of less than 100 items per month. Storage and inventory control, then, can be a serious concern for the small home-based business.
With these tips in mind, it is possible to earn money on Amazon, and it can be a lot of fun to discover those niche markets that still command profitable sales. However, one should be cautious about acquiring inventory as there are plenty of ex-Amazon sellers out there who have learned the hard way that not everything sells well on Amazon.
