| Disclaimer: My expenses are just that, MY expenses. | | | | label printer. You will then have to print out your |
| You may or may not incur such expenses if you are | | | | packing slips and labels on plain copy paper, which is |
| beginning or your expenses may be even greater if | | | | also a necessary expense. I used to get my shipping |
| you're an expert at this by now. Either way, I hope | | | | supplies at Uline but I started using Royal Mailers a |
| that you will grab some ideas or "Ah Ha!" moments | | | | few months ago and haven't looked back. You can |
| while reading this material. | | | | get to them by clicking on the banner on the left |
| I will break these expenses down into 3 different | | | | hand side of the screen. They offer cheap pricing, |
| categories: monthly recurring expenses, recurring as | | | | free shipping and have just about anything you'd |
| needed expenses and one time expenses with | | | | ever want in terms of shipping and packing supplies. |
| mandatory and optional expenses in each. In each of | | | | Unfortunately, I don't know my expenses in this |
| these categories I will explain each expense I have, | | | | category off the top of my head but I would |
| how much I'm spending and other expenses that you | | | | estimate $300/month. |
| may see when running a successful online book selling | | | | 2. Book Inventory - IMPORTANT! If you don't |
| business. | | | | continually refresh your inventory your business will |
| Monthly Recurring Expenses | | | | fail! Spend wisely in this category. You can get |
| Mandatory Expenses | | | | inventory online, thrift stores, yard sales, estate |
| | | | sales, auctions and a slew of other places. Be frugal |
| 1. Internet Connection - An Internet connection will | | | | yet try to find out what you can get from the book |
| be the crux of your business. This is what the online | | | | you buy by using book scouting tools. |
| part is all about! A high speed connection is crucial for | | | | 3. Postage - Postage is another necessary evil. You |
| your business and your sanity because you will spend | | | | will pay for postage on everything you send out. You |
| a significant. Call your local phone carrier or your cable | | | | can save on postage by buying postage through |
| TV provider to get a DSL or cable modem | | | | Endicia, but it's still going to be one of the biggest |
| connection RIGHT NOW if you haven't already. If | | | | expenses you will see as an online book seller. |
| you're not in an area that can get a high speed | | | | Optional Expenses |
| connection, I don't think this business is for you. That | | | | |
| is how important this is. I pay $40/month for my | | | | 1. Labels - If you choose to save some time and buy |
| cable modem connection not only for my business | | | | a Zebra label printer you will have to buy labels for it. |
| but also for personal use as well. | | | | The label printer will save you tons of time. I just |
| 2. Utilities - Utilities are also an obvious mandatory | | | | about 8,000 labels for $135 at Royal Mailers. Not too |
| expense because you need to put your books in a | | | | bad at all for saving me tons of time and headache! |
| climate controlled area. Typically, this area is a home | | | | One Time Expenses |
| you're already living in but for some, like me, it is a | | | | Mandatory Expenses |
| small warehouse. I pay a portion of the utilities to my | | | | |
| sister that lives in the home connected to this small | | | | 1. Book Storage - Your initial costs will always be a lot |
| warehouse. My electrical cost is about $50/month | | | | compared to your ongoing costs. Book storage is |
| when split with my sister, but your will obviously be | | | | one of those. You will need a lot of room to store all |
| different than mine. | | | | of your books. I made my book shelves so the cost |
| Optional Expenses | | | | was minimal to me. All it took was a few cinder |
| | | | blocks and some sturdy boards. If you don't want to |
| 1. Venue Listing Fees - When you just have a few | | | | go through all that hassle, you can always just buy |
| books to sell, most sites will let you list your books | | | | some rudimentary bookshelves. |
| for free with no listing fees or monthly fees. | | | | 2. Computer - Another obvious expense here. You |
| However, once you start getting an inventory in the | | | | will have to have a computer in order to run this |
| thousands, sites such as Amazon, Alibris and | | | | business. I recommend a newer computer with at |
| Abebooks will want some monthly fee. The fee for | | | | least a Pentium Dual Core processor with 2GB of |
| Amazon is the Pro Merchant fee which is $40/month. | | | | RAM and a nice 19? flat panel monitor. You can |
| This fee gives you a ton of great benefits. You can | | | | always get by with less horsepower but since you |
| read all about them on Amazon's merchant help page. | | | | will most likely spend a lot of time on the computer, |
| Alibris has it's Gold program for volume sellers which | | | | just splurge and buy something nice. It will be worth |
| is a monthly fee I pay and Abebooks has $25/month | | | | it. |
| fee to list books on their site which I also pay. Other | | | | 3. Laser Printer - I started out with an inkjet printer |
| sites vary on the monthly fees they charge. | | | | and it was terrible! I would try to print out packing |
| 2. Multi-Venue Listing/Order Service - I subscribe to a | | | | slips and online postage and the ink would smear and |
| service called Fillz. This costs me $50/month + 1.4% | | | | it would run out very quickly. Not to mention the ink |
| of sales but is invaluable to me. This site allows me to | | | | was expensive! Get yourself a nice laser printer. I |
| upload my inventory to one site and have it | | | | bought mine on Amazon. |
| dispersed on 10 different sites. It keeps all my | | | | Optional Expenses |
| inventory in sync as well as downloading all my | | | | |
| orders in one place. If you want to become a volume | | | | 1. Label Printer - This is optional but I highly |
| seller, a service like this is crucial. Another service that | | | | recommend one. This little guy has saved me tons of |
| is similar to this is The Art of Books. | | | | time. I recommend the Zebra LP-2844 printer. I've |
| 3. Book Scouting Services - If you're going to be | | | | used one for a few months now and it has been |
| looking for great inventory at cheap prices, you will | | | | very solid. |
| need to subscribe to a book scouting service. I | | | | 2. USB Bar Code Scanner - A USB bar code scanner |
| subscribe to Scoutpal for my offline PDA book scout | | | | helps me scan books quickly when I'm looking up |
| software as well as my online book scouting. Other | | | | prices. I have a strategy where I buy a bunch of |
| services such as this include Neatoscan and Media | | | | books site unseen and then take them back to price |
| Scouter. | | | | them. It's a little risky sometimes, but it has paid off. |
| 4. Online Postage Vendor - This is another life saver | | | | This scanner allows me to scan each book without |
| for me and for any volume seller. This prevents you | | | | typing in the ISBN number in Scoutpal. I use the |
| from having to wait in line at the post office and it | | | | Adesso Ccd Contact Barcode Scanner USB Light |
| will also save you some money! Printing postage | | | | Rugged Design Black and it works flawlessly. |
| online is extremely important to me as a volume | | | | 3. Blue Tooth/Socket Portable Scanner - This is a |
| seller! This service costs me $16/month. I use Endicia | | | | must if you buy book scouting software. This |
| which I HIGHLY recommend. This service is bar none | | | | scanner allows you to scan book on the fly while you |
| the best around and is pretty much the industry | | | | are out in the field at a Friends of the Library book |
| standard. | | | | sale, auction or yard sale somewhere. You can scan |
| Recurring as Needed Expenses | | | | each book you see if it has a bar code to quickly see |
| Mandatory Expenses | | | | the price it is going at. I use and recommend the |
| | | | Microvision Flic Cordless Bar Code Scanner. |
| 1. Shipping/Packing Supplies - This is an unfortunate | | | | 4. PDA for Book Scouting - If book scouting this is a |
| expense of shipping books. You have to have | | | | requirement as well to go with your trusty scanner. |
| something to ship them in and buy the supplies that | | | | You have a few different options here but I use a |
| go along with it. I buy bubble mailers for all of my | | | | Windows Mobile PDA running Windows Mobile 6.0. |
| books except for the more expensive ones that | | | | This is a little pricey, but will pay for itself in no time |
| require a box. Mailers are the cheapest way to go | | | | since you will be knowing how much a book is worth |
| yet still provide adequate protection for your books. | | | | BEFORE you buy it. |
| Included in this section is also packing tape. You | | | | You will find out that some of the optional expenses |
| always want to take one strip of packing tape on | | | | save you time, some save you money and some |
| top of the bubble mailers sticky surface just for | | | | make you more money! It is up to you to decide |
| good measure. Packing tape will also be required if | | | | how much you have and want to invest in order to |
| you choose to print postage online and don't have a | | | | pump resources into this business. |