Starting a Business - Used Book Reseller

Description of Job

• Resell used books from your own library to collectors and readers via web sites and online marketplaces.
• Resell textbooks and technical books to students and researchers.
• Purchase used books at tag sales and yard sales for resale.
• Act as a purchasing agent for collectors seeking specific books.

The Need

You love books. That’s why you’re holding one in your hands right now.

Sometimes, though, the cost of new books—especially textbooks and technical titles—can be quite high. Perhaps you want a book that is no longer in print and not available at a retail store.

Sellers of used books keep old books alive and deliver current but secondhand titles to willing readers.

Challenges

The margin of profit between the purchase price of a used book and its resale value is not very large. Therefore, any books you buy and cannot resell will eat away at overall profits.

Know the Territory

Reselling used books is a time-honored business that dates back to the time when the first new book was sold. Much of the business was once a low-paying enterprise with high costs: inventory, storage, advertising, and a retail location.

However, this business model was turned on its head by the arrival of the Internet, which allows virtual businesses to thrive because of the quick and inexpensive exchange of information without regard to location.

Study the used book marketplaces at Amazon.com, at BarnesandNoble.com, and at other web sites to learn about programs that allow registered users to sell used books. These sites essentially give you free advertising for your wares, as they are directly linked to searches performed by visitors to their well-promoted cyberstores. They handle the billing and collection of funds from purchasers and remit the amount—minus a reasonable commission—to you.

Amazon and Barnes & Noble allow resellers to post a price for their books and adjust it up or down based on their success. At various forms of eBay auctions, products are sold to the highest bidder; sellers are allowed to set a reserve price, which is the minimum price for a product.

You can also market your services as a book sleuth for collectors. Armed with a list of books they need or want, you can search the Internet, used book stores, estate sales, and other sources. When you find a wanted book, you purchase it on behalf of your client.

How to Get Started

Study the online web sites to learn about the used book market and resale programs. Register as a reseller. The web sites do all of the work of promoting their offerings and making visitors aware of the used book marketplace.

If you will be selling direct, place flyers and ads in high schools, at colleges, and on community bulletin boards.

To find books to sell, be on the lookout for tag sales, estate sales, and private offerings.

To find private collectors seeking titles for their libraries, place ads in newspapers and in newsletters of special-interest organizations.

Up-front Expenses

The principal up-front expense of a used book business is the cost of inventory.

You’ll want to avoid overpaying for any books you purchase.

If you are listing products on another company’s web site, your only expense will be the minimal cost of computer access to the Internet. There may be some costs related to the storage of books.

How Much to Charge

If you resell books through an online web site operated by Amazon, Barnes & Noble, or similar operations you will receive the selling price of the book (minus a prearranged commission and shipping costs).

If you list books on a web site of your own, you will receive the full purchase price of the book plus shipping costs, but you will also bear the additional costs of advertising, promotion, web site creation and hosting, and credit card services.

Acting as an agent on behalf of a collector, you can charge a significant premium above purchase price to pay for your time and other expenses.

Legal and Insurance Issues

Special notes: In dealing with your client’s property, seek to limit your liability for damage or loss to the actual replacement value of items in your possession. You should protect yourself against claims for sentimental value or loss of use.