Monday, May 20, 2013

Competing in the Amazon Marketplace

In the competitive world of publishing authors often sit and contemplate how to live off selling books. How can I quit my day job and be a full-time author? How can an author effectively do that if every avenue that they must utilize to sell books has a method for them to be undercut, and lose potential sales. Indie authors have to compete with mainstream authors and the money put behind them to market and advertise their book, and the huge print runs that can be used to flood book stores and other huge retailers like Walmart and Walgreens. But, indie author's are not the only ones to have this sort of competition. Let's take a look at the price of some novels on Amazon.

Wahida Clark's novel Honor Thy Thug paperback retails for $12.17, the price set by her publisher. Customers are use to that $14.99 and $15.00 price point, so $12.17 is a steal for an Essence and NY Times Best Selling author's new release. So if given a choice, why would a person buy a new indie author's book for $15.00 or more.


K'wan's novel, Animal retails for $11.49, the price set by his publisher. Now, here is the fundamental difference between Animal and Honor Thy Thug. Animal is sold in the Amazon Marketplace, and the lowest new copy is being sold for $3.94. So, in this case, why would anyone pay the publisher's $11.49, when "horizonbb" an Amazon Marketplace retailer is selling his book for $3.94.


In an effort to see how this problem actually effects author's a few months ago, I set my novel prices lower than $15. I set Die Later to $8.99, which it seems that Amazon lowered to $8.09. Why, I don't know, I mean haven't I set it lower enough. Looking at the Amazon Marketplace for that book it seems that the number of sellers has been limited to four retailers, because the price cannot be beat.








But taking a look at Laugh Now, which is set at $10.93, and the lowest price it's being sold for in the Amazon Marketplace is $9.37 with over 15 retailers selling it under $10.93.



What needs to be done, I have not figured out, yet. But I welcome suggestions. We sell our books on our personal sites for $15 typically, but most readers know to go to Amazon and of course they buy there because the books are usually cheaper and they have Amazon Prime Accounts that affords them free shipping. Two things, I cannot understand. Why would my book be reduced $0.90? I mean would that really make a difference to readers? And how can we compete with the sellers in the Amazon Marketplace?

2 comments:

  1. I sell DVDs and electronics on Amazon Marketplace. I know that when it comes to DVDs, Amazon will try to beat the lowest price by a penny. If Amazon is selling Braveheart at $9.99 and I try to undercut at $9.75, Amazon will set its price at $9.74. Thus, a price war starts until third party sellers like me can no longer lower the price.

    My suspicion is that whatever price you set, Amazon is willing to beat it by $0.90. If you want to do a test, change your inventory to one, and keep lowering the price and see if Amazon will keep on doing that. You must take into account shipping price. So in the case of Laugh Now, only one seller (manhattan_media_mart) sells at below Amazon price.

    The point is be careful if you sell your product on Amazon. Amazon has all the data it needs, how many Braveheart DVD sold within the past 30 days, what was the average price, how many copies seller A, B, C, D, and have, etc. Using this data, Amazon can choose to pricematch a product or choose to let third party seller keeps the lowest price.

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  2. https://www.fiverr.com/sohail7960/convert-your-word-or-pdf-file-to-e-pub-format

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