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  1. #1
    Domain Addict / Formerly known as elbowcreek Thomas A. Rice's Avatar
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    So, That's Why I Make The Big Bucks, Baby....
    After a long absence from the amazon program, started promoting books, and I have to admit, the click/sales ratio is pretty darn good.

    Heh, sold a book the other day for a grand total - sit down, don't want you to be overwhelmed - of .01 . Yep, that must be a heck of a book there, only costing a penny.

    The good news is, I get a whopping 4% commission on that one, it's MINE, ALL MINE mwuhahahahahahahaha......, if I can sell like 35,000 more of those this month, I could almost pay my water bill. Almost!

    When I inquired as to how, exactly, one sells a book for one penny and makes money, amazon was kind enough to reply:

    - - - - - - - - - - -
    Our 3rd party market place sellers can set their own prices on items.
    Many times they will offer their items for a penny. Unfortunately this
    will not allow for much in referral fees for the item. However, it
    does count towards your monthly total number of items referred, which
    will raise your percentage you earn on the other items you refer
    customers to purchase.
    - - - - - - - - - - -

    ( actually, it generated 0 in referral fees, lmao. )
    Following everyone else is a GREAT way to become average.

  2. #2
    Best New ABW Member 2007 sfcom's Avatar
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    I read a thread on Amazon once about how these sellers actually do pretty well selling their 1 cent books. I guess they make their money via shipping costs. I don't agree with it, as it reminds me of eBay sellers with overinflated shipping. Though, at best the profit is a couple of dollars/book.

    At least we don't have to carry the physical inventory! That would suck.

    -sfcom


  3. #3
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    I would love a lot of those. Number of items sold, it doesn't take much to move from 4% up to 6%, only 7 items sold, 31 to move to 6.5%. Then when you sell some real stuff, the commissions are pretty nice.

  4. #4
    Moderator MichaelColey's Avatar
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    Quote Originally Posted by elbowcreek
    However, it does count towards your monthly total number of items referred, which will raise your percentage you earn on the other items you refer customers to purchase.
    Don't discount the value of this. I wouldn't push the $0.01 books, but if customers buy some while they're there, it really doesn't hurt you.

    Amazon.com should make those Marketplace items a bit more fair. They hold back a small portion of the shipping, and they really should share a portion of the shipping with their affiliates.

    I don't see how sellers can make much on the $0.01 items. The shipping amount the sellers get (which is a fixed price set by Amazon, unlike the eBay auctions with inflated shipping costs) is a little more than actual shipping costs (for most books), but when you consider packaging and time, it has to be close to break even.
    Michael Coley
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     Affiliate Tips | Merchant Best Practices | Affiliate Friendly? | Couponing | CPA Networks? | ABW Tips | Activating Affiliates
    "Education is the most powerful weapon which you can use to change the world." Nelson Mandela

  5. #5
    Domain Addict / Formerly known as elbowcreek Thomas A. Rice's Avatar
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    The conversion rate is making up for it, around 10%, if you base it on overall books sold, and I do have to admit, that's the only .01 book purchased through my links. Someone is making money off that item, though, and it's not the person who generated the traffic for them. Hey, if they rounded up, I'd at least get a penny out of the deal, instead of it being rounded down to 0. Pretty soon I could afford that yacht I always wanted for my bathtub.
    Following everyone else is a GREAT way to become average.

  6. #6
    Best New ABW Member 2007 sfcom's Avatar
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    This is where the money is made:

    Per Amazon's site:

    "Rates are based on shipping a single item. Purchasing multiple items results in multiple shipping charges--there are no "per shipment" and "per item" charges, as there are when you buy directly from Amazon.com."

    So, when the seller makes a single one cent book sale, they are probably just breaking even. But when they get a single large order of one cent books, that is where the percentages start to look more favorable.

    So, yeah. It is kinda like an eBay seller who overinflates shipping prices. Something is keeping the one cent books in play. People aren't just doing this for free.

    -sfcom


  7. #7
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    Also keep in mind, the way Amazon has the conversion rate is different from everybody else.

    Normally 100 clicks and 1 sale = 1% conversion rate.

    With Amazon, 100 clicks, 1 sale but you sold 10 items = 10% conversion rate. Other places it would be listed as a 1% conversion rate.

    Most places do it by sales, they do it by items.

  8. #8
    Moderator MichaelColey's Avatar
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    Shipping of a $0.01 marketplace book is $3.99. It looks like Amazon.com deducts $1.35 for a book, so the seller gets $2.65. Small sellers also have a $0.99 fee (giving them $1.66), but I'm assuming that most $0.01 book sellers are Pro Merchants (who pay $39.99/month). Mailing a 1 pound Media Mail item costs $2.23. An envelope/mailer might cost a dime. That's a profit of $0.34 on a single $0.01 marketplace book.

    I can see multiple-item orders being a little more profitable (about $2.50 for a 2-item 2-pound order), but there must be a ton of single-item orders. If you shipped 50 two-item orders and 450 single-item orders in a day, that's about $275/day or $70,000 a year. And that would be a tremendous volume of books. And it doesn't take into consideration acquisition costs of the books, storage space, labor, etc.
    Michael Coley
    Amazing-Bargains.com
     Affiliate Tips | Merchant Best Practices | Affiliate Friendly? | Couponing | CPA Networks? | ABW Tips | Activating Affiliates
    "Education is the most powerful weapon which you can use to change the world." Nelson Mandela

  9. #9
    Domain Addict / Formerly known as elbowcreek Thomas A. Rice's Avatar
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    Michael- Putting it that way, it sure sounds like a ton of work!
    Following everyone else is a GREAT way to become average.

  10. #10
    Best New ABW Member 2007 sfcom's Avatar
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    Quote Originally Posted by MichaelColey
    ...If you shipped 50 two-item orders and 450 single-item orders in a day, that's about $275/day or $70,000 a year...
    Hmmm...maybe they are stuffing the packaging with ads for their affiliate websites? If not, maybe they will send out flyers for a few of mine. 500 flyers a day * 10 percent type ins * 10 percent sales conversion = 5 sales/day. Nice little bonus for stuffing a bookmark or two in there...lol.

    -sfcom


  11. #11
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    Could you share which method you promote your Amazon? Do you use most as aStore or using landing page as Amazon page?

  12. #12
    Member shopsat24seven's Avatar
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    I've tried both. I prefer landing page. The AStores I think confuse people. Is this Amazon or not?

    If I link to a book I pop up Amazon in a new window, that way if they don't buy my site is still there.

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