A Penny for your Thoughts. How can Amazon Sell Books for a Penny?
I love when January comes around because as wonderful as entering a new calendar year and feeling a reset, this last 6 months I have dedicated to not waiting until the “new” year comes to accomplish what I want (and in most cases, need to). So that being said, in December I was reminiscing over childhood memories of the days, literally multiple days that I would spend in bed reading fascinating books. I can’t remember though the moment that I stopped reading, the moment I deemed work and success more important than taking that time for myself to do something I enjoy.
Last year I had the opportunity to spend a couple months in Mumbai, India. When talking about my trip, so many times people would ask “have you read Shantaram?”. This past summer I started reading Shantaram, I read the whole book front to back in 2 weeks (it’s a massive book). I think this was the moment my boyfriend realized how much of an inner nerd I am.
Rekindling my relationship with a cant-put-down novel I decided it’s time to start reading. Following Mark Zuckerberg’s 2015 resolution of reading 2 books a month, I thought this was a great goal to follow. In search of my next daily scapegoat, I trotted off to the used book store to support the local Literacy foundation. This turned out to be a unique experience, almost every book I was looking for was not there, with a lot of chaos throughout the store.
After recalling a book title “When to Rob a Bank” in the business section a couple months back, it caught my attention, not that I’m interested in robbing a bank, but it turns out this book was written by the authors of Freakonomics
I found this book and many used other books (listed as in fair, good or great condition) from a ton of Sellers on Amazon, and get this for $0.01. Books for a Penny! In Canada, a penny is not even considered a currency and is now rounded up or down to the next nickel. You could say it’s free. However, shipping and handling were required which did cost $6.38 (to Canada). This book (because it’s so good), couldn’t be found new in stores or even as an e-book for less than $18. All in all, I saved around $11, thanks Amazon and Green Books!
HOW DOES AMAZON SELL BOOKS FOR A PENNY?
The book itself costs $0.01 but Amazon collects $3.99 from the Buyer in shipping fees. From this $3.99, Amazon collects $1.35 “closing fee”. The Seller of this books receives $2.66 ($0.01 + $2.63 shipping allowance). The Seller doesn’t pay the $0.99 fee per sale because they are most likely a Pro Merchant, however they do pay a monthly subscription. The shipping will cost the Seller $2.35 (1lb weight) in postage for shipping and recycled packaging is free. The profit on a book the Seller gets for free somehow is $0.31. This is not including labour costs to make it happen. Amazon is clearly the winner, as their profit is $1.35 vs. $0.31 for the Seller. All for a $0.01 book.
My thoughts on Freakonomics by Steven D. Levitt? LOVED IT! I would suggest this is a must read book. This is one of the first books that I actually stopped reading it one night because I was worried about not being able to read it the next day. I also suggest reading the sequal “How to Think Like a Freak” and I’m just about to load “How to Rob a Bank” onto my kobo. Freakonomics
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