“There are so many opportunities out there when you take a peak outside the box.” ~ Unknown
One of the areas of growing interest in book arbitrage is local sourcing. By that I mean, attending local thrift bookstores, library sales, college campuses & book fairs etc. and picking up books for $0.50c – $1.00 and selling them online for $12.00-$15.00 in a lot of cases & for $80.00-$100.00 in fewer instances but those are still available.
The profit margin on the smaller priced books in themselves (in small volume) are not earth shattering after fees etc, however from a business ROI standpoint are still pretty healthy.
As discussed in previous blogs, to date some of the main reasons US based Book Arb business owners local sourced was for the benefit of feedback which is incredibly valuable in your health score but also for the benefit of velocity of sales.
In short, a busy store brings more customers. Amazon rewards busy stores with more customers.
The ability to sell lots of good quality very cheaply sourced books and to turn them over for profit just makes sense. Increasingly some Book Arbers in (and outside) our community are specializing in this model as way of creating compounding sales and profits.
It’s a question of volume with locally sourced books but you get the picture. Truckloads of good quality cheap books sold quickly and easily every day doesn’t take long to grow into a big operation and big success.
Our US Book Arb community have the ability to physically local source, very inexpensively, adding this wing to their business. They store the books at home then when sold they pick & pack and ship the books to the customers themselves saving costs & making money.
Obviously there is more effort off-line with this model in the U.S. but this too can be outsourced & automated over time which is another huge benefit to the book business.
“Always think outside the box and embrace opportunities that appear, wherever they might be.” — Lakshmi Mittal, Chairman & CEO of ArcelorMittal
Even we as internationals who cannot physically local source are working on ways of benefiting from this avenue of income because of the ability to automate it.
We are members of a team of international sellers (from our Book Arb community) who are actively working on cost effective ways to add this structure to our business.
Initially we didn’t focus on local sourcing as a form of additional income that was feasible for us. Now we realise the potential in it for our business especially as it is something that we can set up once and then enjoy automated profits and sales on a continuing basis.
As internationals we have even tighter margins involved in local sourcing (they’re already pretty tight). We have additional costs of paying locals to find the books for us, the warehouse costs to store the books then the pick & pack fees when the books sell.
However, this method once set up will be hands off for us which is a huge benefit. We love automation, it’s automatic, hands free success……
“If opportunity doesn’t knock, build a door.” ~ Milton Berle
In the next blog I will discuss the benefits of being mentored by the best in the Book Arb business & why it’s so important to continue learning and growing.