Personally delivered to you by Steve Lindhorst, author of
"Selling on 'the River', and "The Niche Book
It's been a month since the last full newsletter - so this one is a little long. I've been super busy with Amazon - I'll explain more below. Also, I am introducing a new section called "Reader Spotlight" where I will feature one reader and their business. Hopefully it will be encouraging to everyone. Also - You will get an email from me this week with a special invitation. Please watch for it Tuesday morning.
On to the newsletter...
In This Issue
- Amazon FBA - 30 Days Later...
- Profiting from Resale Rights products
- READER SPOTLIGHT: Bags with a Purpose
- Selling on 'the River' Now Available in Hard Copy
1. Amazon FBA - 30 Days Later...
Recently, I told you how my Amazon sales had taken off thanks to Amazon's FBA (Fulfillment by Amazon) program. I'm going to be a little more candid this time, because I'm really excited about this. Hopefully, you grabbed Nathan Holmquist's ebook, Selling on Amazon's FBA Program last month when I told you about it - because the "free" window is now closed. Nathan has updated it, and he's charging for it again - but I have to tell you - it's worth it's weight in gold.
Even though I wrote Selling on 'the River', I have to admit, I was not really setting the world on fire with my Amazon sales. I was so busy with other things, I didn't relish the thought of packing and shipping books all week long. So, with 187 books in my garage, I quietly began to ignore the fact that I was selling less than five items a month on Amazon. Less than five per month - there, I said it. Embarrassing.
Then I read Nathan's book. (Oh, I also got on medication to help me with my Adult A.D.D.) Within a week I packed and shipped all the books to Amazon, they started selling. The first week I sold about five or six books. Then, I bought more books and shipped them to Amazon. I sold even more.
Then, I decided to try one of those "scanners." I ordered the AsellerTool scanner. Now, I've been going for a solid month, and I want to share the results.
Over the past 30 days, I have gone from five books per month, to 125 books sold. I could have done better, but I was busy building up inventory. I started pretty low. I now have over 600 books on Amazon, instead of 187. I try to spend less than a dollar per book, but that varies. So you have a rough idea of what my inventory costs.
Using the exact methods Nathan lays out in his ebook, my take from the 125 sales is $1128.37. That is after deductions for shipping my books to Amazon's warehouse. I use their UPS account, then they deduct it from my pay.
That was done in 30 days, totally part-time, with books from local thrift stores and one library sale. The scanner cost me only $60 for the month. AsellerTool has a rental program and I wanted to try it for a month before I committed. Believe me - I'm convinced.
If you didn't get Nathan's book before, and you want to sell anything on Amazon - I'm not just recommending it - I'm telling you - get his book.
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2. Profiting from Resale Rights Products
Recently I began offering a bunch of information products on this site for $10 or less. As you may know, I didn't create these products, but I have purchased the resale rights to be able to sell them.
Not only are these products valuable because of the information they contain, when you have the resale rights, you can also turn them around and make money with them yourself.
Not all ebooks come with the same rights. Some come with just simple resale rights, some come with master resale rights and then there are those that come with private label rights. Is there a big difference? Definitely!
Ebooks with master resale rights are a little more flexible as far as what you can do with them. Most ebooks with master resale rights allow you to put them up on your own sales page and set your own price. For each sale, instead of having to share a percentage with the person who created the ebook, you get the entire price of the ebook when it's sold. Also, you can set the price at whatever you want unless the master resale rights come with a provision that you can't set the price below a certain amount.
Finally, there are private label rights, which are the most flexible rights you can get. With private label rights, you can not only charge whatever you want for the ebook, but you can also make changes to it as you will be getting the source files with the ebook when you buy it. Most source files come in the form of either Word Docs or text files. With private label rights, the product virtually becomes yours. You can even turn it into a new product if you want. The choices are limited only by your imagination.
Generally, these products will come in a zipped file, inside you'll find
- the product
- an entire website that will be ready to go with a little tweaking
- a text file or PDF with the resale rights listed
Ebooks with just regular resale rights are basically just affiliate ebooks. You can't really do anything with them other than sell them. You can't change the price of the them or do anything with then really other than just put your affiliate link out there and hope you rack up a few sales. You are totally at the mercy of the person who created the ebook. They can change the price, change the content or just plain discontinue selling it and there's nothing you can do about it. So before you get too attached to these regular resale rights ebooks, keep these things in mind.
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3. READER SPOTLIGHT: Bags with a Purpose
I regularly communicate with readers on various topics. Recently, I had an email conversation with Dolores Lechlitner, who runs a fascinating business called Bags with a Purpose. I thought her story and bags she sells are pretty fascinating. I used to live in the same general area as Dolores, and the recreational vehicle industry is big there. Notice how she took advantage of her local connections.
How did you get the idea for your business?
I was looking for a niche product to sell on eBay and a website. My sister-in-law mentioned she was in a group of business owners looking for a way to find more jobs for out hard hit economy. We live in an area that has a lot of RV and motor home factories, and a lot of these closed due to the poor economy. She also mentioned that they were thinking of using fabric from a factory that made RV products to make bags. That would keep the fabric out of the landfill and keep people working.
When she mentioned this venture to me I was very excited as it sounded just like what I was looking for. She also told me they were interested in someone selling them online. I quickly told her I was that person. I have always loved bags and purses, as many women do. This sounded like the niche I was looking for.
This company started making bags, but I was not impressed with their quality, and they had decided to not sell any online. I gave up on them, but also had heard that the original company that made the bags was selling the rights to someone else. I started searching online and finally found the website of the new company.
Great job! - once you tracked them down, what did you do next?
I sent them an email right away to see if I would be able to sell the bags online. I got a quick reply and they were willing to talk to me about this opportunity. So I made an appointment, jotted down some notes and went to see them. They were very open to my ideas and gave me permission to sell their bags online. I was very excited to say the least!
They bought the original companies machines and excess materials and supplies and hired some of the same workers. They also own the rights to the designs and name “The Original di Bag.” The amazing thing is they have set up their business up in the small town where I live. And I can stop in any time to talk to them or buy more bags.
The bags have been selling in local stores and they have been trying to expand to other areas. They would like to continue to grow and be available in stores across the country and make a name for themselves.
I put the different styles of bags on eBay and Bonanzle until I could get a website up and running. It took me a while before I finally got it finished. I am now at http://bagswithpurpose.com and hope to start growing my business. I have a lot of ideas on how I want to expand this business into other areas.
How do you find buyers? What's your marketing plan?
I need to start advertising and spreading the word. I am very excited and will keep working at it. I am learning this as I go so it is taking me longer than I would like, but I will keep working at it. I have had this dream of finding a product that I believe in and love for a long time. It feels to good to finally have one!
What tips can you offer others who are struggling to turn their dream into reality?
It has been a struggle to get to this point with all of the other things I have going on. But it is a dream I have had and now I have to put in the hard work to get it growing. I believe once you find a product you believe in and like, the challenge is worthwhile. I need to reach out to others and ask for help in the areas I am still learning.
I have read several ebooks on building your own website and finding a niche. But I am a “hands on” learner so I will be learning a lot as I grow my website. I appreciate the help that Steve has already given me. And this opportunity to share my store with you.
Thanks again!
dee
I would like to add this section to each newsletter, there are thousands of readers of this newsletter who are trying to get their online businesses up and running, just like you. If you'd like to be featured here in an upcoming newsletter, please let me know and maybe I can include you and your business!
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4. Selling on 'the River' Now Available in Hard Copy
Recently I mentioned that I was using CreateSpace to turn Selling on 'the River' into a real "ink and paper" book. It's finally done and available on Amazon.com.
CreateSpace does a beautiful job. The book is printed in color, and it's 74 pages. A lot of people asked about getting a hard copy. You can also get it through my CreateSpace eStore.
Thanks for reading!
Remember - Watch for my special announcement on Tuesday morning!
Steve
{ 22 comments… read them below or add one }
Hey Steve.
Thanks for the update on the FBA program. I was wondering…do you know if this only applies to book on Amazon or does it apply to all of their products?
Basically I was wondering if I got ahold of a good supply of a certain item, say a toy, if I could use the FBA to sell it.
Thanks for the great content!
Steve, have you checked out Nathan’s updated book? I’m wondering if anyone has any feedback on it or if it’s worth paying the $20 for since if you’re using FBA currently you probably are expericenced enough to not need the book. I read it over a month ago as he sent it to me for free and I’ve been doing unbelievably well…I sent in 500 dvds this past week and almost all of them are gone already and that’s without the hassle of having to ship as the order comes and I price everything higher than if I had been using the marketplace to sell. Just curious, actually if Nathan sends me a message I’ll probably just buy it as a thank you for opening my eyes to FBA.
Steve,
I got Nathan’s book but I am confused about how exactly this FBA system works. I just got the book so perhaps I have missed something. When you send your books to Amazon, do they put them up on the website for sale or do you have to do all the write-ups and pricing for the books individually? I will read through it again, but if you can shed any light, I would really appreciate it.
Thanks very much,
Gale
Another great newsletter with concrete information that is practical and easy to understand.
Thanks Steve!
Amazon FBA program is for USA residents and not for non residents. Thus I can’t participate. Any alternative for non USA residents to participating in this program? Or any other idea non residents employ and use FBA program.
Thanks
Great job Steve. I love your writing style. So honest and authentic!
Also loved the article about the bag company. I live in Granger, IN, near Elkhart, where those bags were first made. I have also seen them for sale in local stores. Great to hear a positive, upbeat story, and one that was close to home!
I met you at the Meet and Greet in Chicago at Ebay Live, and talked to you about Ebay Motors stuff mostly.
Anyway, just wanted to give you a cyber pat on the back!
Regards,
Linda
Hi Susan –
You can use FBA for all kinds of things – just remember Toys is a tricky category because it is restricted during the holiday season.
Gale – You list the books yourself, then switch them to “Fulfilled by Amazon.” That takes them out of your available inventory until they arrive at the Amazon warehouse and get checked in. Then your listing becomes live again. You control the listing / pricing the whole time.
Hi Ishtiaq – Unfortunately, this is just a US program for now. I haven’t heard of a way for it to be used outside the US.
Hello Steve,
Your post is most informative. I’m still catching up to everything.
I bought both of your e-books. Congratulation on having the
“Selling On The River” in print form. You are really moving forward
at the speed of light. Keep up the good works.
My album is on Amazon now and the second album is being packaged.
You really open my eyes about selling on Amazon.
Best to You!
Thelma
No problem Dee – I’m checking with Nathan on the updates. I’ll get back to you.
Steve,
On the FBA program, where are you buying inventory to sell on there? I know the local libraries here have sales throughout the year but not every month. Just wondering if you have any suggestions on where to get the books??
Thanks,
Jason
Hi Steve,
Thanks for all your great tips. I didn’t know about the FBA program until you mentioned it here. Thanks again.
Jason,
I hit all the thrift stores in the county – including Goodwill. Goodwill charges more for books, but with the scanner you can tell if it’s worth it. I also try to get to every Friends of the Library book sales in my area. Finally, watch for estate sales and garage sales with lots of books. Sometimes I’ll just make an offer for a whole box of books, then take them home to see if I got anything good.
Steve,
I am wondering what the advantages of FBA are if you still have to price and list everything yourself? Is it just that things may sell faster because of the shipping?
Thanks – really enjoy your newsletters. Would also really like to know how you were tested for AADD? What type of tests?
Barbara
Hi Barbara,
Having Amazon handle storage and shipping is a great benefit. But since they have control of the merchandise, your items will now qualify for free shipping to Amazon Prime members and Super-Saver shipping for people who buy over $25 worth of stuff. That basically means in most cases you’ll be on the very top of the search results, besides being able to charge more for your items. Nathan’s book explains the whole ball of wax. In short, it has been well worth it for me.
Hi Steve, thanks for the valuable information about FBA. I am thinking of making the switch. I am wondering if there is a magic number (price) at which you do better one way (merchant filled) or the other (FBA). Thank you!
Jamie
Hi Jamie,
At this point, if I can’t make it work with FBA I’m pretty much passing it up. In fact, I’m probably buying more low-priced items now that Nathan’s book helped me see the benefits.
Hello Steve,
Thanks for the FBA information! When you are buying books, besides keeping to a minimum price, do you find that a certain type of book sells better than others?
Does a book have to have a minimum Amazon sales rank for you to buy it or just a good resale price?
Do you ever list cd’s or dvd’s with FBA or just books? Like Brian said above, I hear that they sell faster than books and are cheap to ship and store with Amazon due to low weight.
Thanks again,
Russell
Hi, Steve- more good information, and I do want to get started with FBA. Two questions: In your previous newsletter, you said you learned more how to price the books – could you say more about that? (I got Nathan’s book) Also, do you use your scanner with a PDA or smartphone?
Steve,
Is FBA available to residents of Canada?
John
Steve…
Love the aritcle “Bags with a Purpose” by Dee…
There is a women that was helping out a town and
saving our Landfills, plus making some money for herself…
I love stories like that it helps me to be more positive and
enerized to making a better business for myself…
Look forward to reading more… Give up the great work…
Thank you!
Reg B.