Here's a video that I made comparing the FBA sale price and the current merchant fulfilled price. This is based on the last 1200 books that I sold on Amazon. All these books were purchased at library book sales. You can view the spreadsheet that's in the video right here.
Great information! I have been noticing that I can sell books at significantly higher prices through FBA versus merchant fulfilling them, but had never put together an analysis, so this was nice to see.
Also, what software did you use to record your screen for the youtube video?
I’m glad you enjoyed the video. I currently use Camtasia to record the screen.
Hello, great video. I may now switch over to FBA. How much do you notice,your amount of sales increase?
I really don’t know how much the sales have increased. I switched over to FBA in 2007 and I really didn’t do much tracking back then. I do know that over 80% of my customers are either Amazon Prime Members or use the Free Super Saver Shipping option.
What settings do you use for your repricer for FBA against MF?
I’m always changing it because I’m trying to find the right strategy. Right now, I’m setting a minimum price of $9.95 and matching the lowest-priced FBA competitor after that. If there’s isn’t an FBA competitor, I just match the lowest MF price for that condition and add $3.99.
What repricer do you use? Plus you should add 20 cents for tracking to the MF shipping cost.
I use repriceit.com. Thanks for mentioning the tracking costs. I forgot about that.
Nathan,
Exceptional comparison and a true service to “beginning” FBA members. Proof that
FBA gives great value in the complete program. Why do the additional work when
Amazons charges are so nominal that it isn’t worth doing it yourself. Thank You
Nathan….great work. You are appreciated.
Thanks for your comment, Anthony. I appreciate it!
Nathan
Hi Nathan. I know that I am already subscribed to the emails but I did not get a free copy of your book. Is possible, please?? I am doing OK on Ebay and I might keep that for antiquarian books but I need to get going with FBA on Amazon for all the others. They have taken over our house! Thanks.
Hi Ellen,
You can get a free copy of my eBook on the right side of the blog. You may need to use a different email address, since you are already subscribed to my newsletter. Or you can send me an email, and I’ll just send you a PDF.
Nathan,
I can’t make sense out of your spreadsheet, which I downloaded. From the columns you provide, I should be able to derive the original price that you paid for each book, but it comes out to $0. (Or, using the reverse formula, your selling price minus the fees in your columns equal your “profit”, which of course isn’t profit at all until you subtract what you paid for the book.)
How do you buy books for nothing?
I also notice that your profit analysis doesn’t mention how many books you have in storage at Amazon, which I imagine is substantial, or what you’ve paid for storage fees on your inventory.
Would appreciate your clearing up these puzzles for me.
Thanks!
Thanks for the video, not selling on Amazon but contemplating.
What does it cost to ship your items to Amazon? With this cost, storage, and the amount you paid for the book does it still make sense to become FBA?
It costs around 24-35 cents to ship a book to the nearest fulfillment center. The storage fees are 1.3 cents per month per book. Since, I charge around $6 higher than the lowest Merchant Fulfilled seller, I think it definitely makes sense to join FBA.
From the point of view of beginner, what track would you recommend following? Do you offer coaching?
Thank you.
Hi Charles,
I would recommend selling used books, DVDs, and CDs that you already own. Start with selling merchant fulfilled for the first two weeks. Then upgrade to Fulfillment by Amazon. Get an app for your phone and starting going to thrift stores and libraries. Buy used books for $1 and start selling them for $10 and higher. That will give you the healthy profit margins that you need to start out. Then you can branch out from there.
I currently do not offer coaching, but I believe Suzanne Wells does Amazon FBA coaching over at http://ebaysellingcoach.blogspot.com/.
Which app you are referring to?
Hi Nathan,
I have joined FBA in Canada, and the FBA fees seem to be high, especially the weight handling These are the fees they charge for a paperback book of 567.484 cc. Does this seem reasonable? At this rate it does not look as though I could make much profit. Still I don’t suppose there is much, if anything, I can do about it…or is there?
Amazon Referral Fee $1.20
Variable Closing Fee $0.24
FBA Fulfilment Fees
Pick & Pack $0.90
Weight Handling $3.75
Total $6.09
Hi Jennifer,
Sometimes the weight on the Amazon products listings is wrong, and that’s probably why the weight handling fee is high. If you call Amazon, they should reimburse you for the weight fees and fix the listing. This has happened to me a couple times and they reimbursed me right away.