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Amazon FBA Used Book Flipping Analysis

Discussion in 'Making Money' started by nattyking, Mar 18, 2017.

  1. nattyking

    nattyking Newbie

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    Hello BHW, occasional lurker here. I've just started my journey running a used book FBA flip scheme. For the uninitiated there is already a lot of information out there on this. This method is essentially no more complicated than sourcing used books and having Amazon fulfill them to customers.

    As with anything it is a balance between profits and time invested. I thought it may be of some interest to the members here as to how I calculated what selling price range of books to source and the expected profits from those books on average.

    It should be noted that this analysis was preformed using a non-pro British Amazon Seller account which incurs a flat 0.75gbp fee per item.

    Two important metrics here are books added per week and percent inventory turnover per month. The way it's written in the spread sheet is such that +20 books added per week with 10% inventory turnover per month would be written as [20-10]. Calculations for [20-10] [20-5] [10-10] [10-5] are given but it would be trivial to add in your own values.

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    Monthly profits for average sell price of 17gbp starting from 0 inventory on first day​

    The profit per book is calculated from taking the sell price of the book and subtracting purchase cost, shipping cost per item, and finally the FBA fees. After doing an order 4 polynomial fit to some FBA data from my inventory I was able to come up with a very good equation for predicting FBA fees up to ~30gbp. Evident from the graph, after 30gbp the fees approach ~19% constant.

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    % of sale to amazon fees vs Sale Price​

    After all this is said and done, your hourly rate can then be calculated and you may realize that good sourcing and turnover makes the difference between working 3 months to get minimum wage or actually making some good beer money.

    If you want to play around with my spreadsheet I've linked it below. I'd enjoy hearing some thoughts on this and it should be noted that a lot of this spreadsheet is best case scenario and does not account for other costs like shipping supplies etc. Thanks.

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    Links unfortunately are caught by the spam filter since I have <15 posts :(
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    Last edited: Mar 18, 2017