How to Start and Operate an Internet Used Bookstore Without Spending a Fortune

By Laura Peterson

You must be a book lover or collector if you are reading this guide. You also must know something about the Internet and how to use it. Books are one of the top items purchased over the Internet. An online bookstore is a great "stay-at-home business" you can start without investing a great deal of money. I am sure you have heard or visited Amazon Books - www.amazon.com. Amazon.com has $17 million in annual sales and grows at 34% a month. 44% of its business comes from repeat customers. This book will guide you in starting and operating your own on-line used bookstore without spending a fortune. Selling used books can be fun and profitable, especially if you are a collector and have a great deal of books in your library.

This book will cover all the basics of bookselling over the Internet, including web site design, marketing, and publicity. Throughout this book I will refer to four fictitious online used bookstores as examples.

AN INTERVIEW WITH A SUCCESSFUL ON-LINE BOOKSELLER

The following is an interview with a successful on-line bookseller, Steven C. Bernard:

Steven C. Bernard, First Editions

LP: How many used book titles would you recommend a bookseller have before opening a web site?

SCB: If you have mostly rare, highly desirable stock, you may be able to start out with as few as 500 books, but if you have an "average" inventory consisting of everything from commonplace to rare and unusual, you probably need to have 2,500 or more books on-line. There is pretty much a direct correlation between numbers of available books and sales volume, so you need some reasonably high inventory numbers to generate sufficient sales.

LP: What is your specialty area? Why did you choose this specialty area?

SCB: Modern First Editions, which includes literary 1sts, detective/mystery, science fiction/fantasy/horror, black literature, books into film and signed books. I chose this specialty because it was an area of personal interest and reflected my own reading interests. I now estimate that 50% to 60% of my business comes from the Internet. Internet sales are much more profitable because of the low overhead costs of selling on-line.

LP: Did you start out as a book collector? What did you collect?

SCB: Yes, I was a collector first. I collected 20th century literature.

LP: How many books would you recommend a beginning online-used bookseller start with?

SCB: It depends on the make-up of one's stock. If you have mostly rare, highly desirable material, you might be able to start with as few as 500 items, but if you have "average" stock, you probably need at least 2,500 books.

LP: Where do you get your used books/inventory?

SCB: Bookstores, book auctions, estate sales, bookscouts, charity book sales (AAUW, schools, churches, etc.), and private collections.

LP: How has the home page helped your bookstore?

SCB: It has generated a number of direct sales, but again, most of my on-line sales come via the two Internet book search services to which I subscribe. Distribution of sales from web site:Again, very few sales come directly through my web site. They are coming from the two Internet book search services. International and US: About 5% of my Internet sales are international and 95% domestic.

LP: What advice would you offer a used bookseller on the Web?

SCB: First of all, I do not believe anyone should go on the Web until he or she has a firm grounding in all aspects of the book trade. It is obvious that there are many amateurs operating on-line and they often discredit themselves and the book trade simply because they do not really know what they are doing yet. A novice who continuously makes mistakes hurts professional booksellers by scaring away the general public. Learn your trade first. Having done that, make sure you have a sufficient number of titles before you begin. Be thorough and accurate in your descriptions, revealing any and all flaws. Do your homework. If you describe a book as a first edition, be sure that it is one. I am amazed how many online booksellers apparently do not even know the basics of bibliographical descriptions. One point that stands out is how few on-line booksellers seem to know that when the year of publication only appears on the copyright page, that year should be listed in parenthesis--e.g., (1949). Again, basic fundamentals of the trade which many new booksellers do not bother to learn or observe.

SOURCES OF FUNDING FOR YOUR ON-LINE USED BOOKSTORE

73% of all business start-ups are financed with the owner savings or loans from family and friends. A few use other sources of funds, such as credit card advances, bank loans, or loans from the public sector (government and state).

YOUR OWN BOOK COLLECTION CAN BE THE STARTING INVENTORY FOR YOUR ON-LINE USED BOOKSTORE

You would not be interested in starting a used, on-line bookstore if you didn't love books. Perhaps you are a book collector or are a fan of a certain genre of book -mysteries, cookbooks, etc. You probably have several books on your bookshelves just collecting dust. These books can be stock for your used bookstore.

There is only one rule for selling used books - you must specialize. You must select a subject or genre to sell. Select a genre that interests you. For example, if you dabble in antiques, perhaps you can sell books on "antique collecting" and other collectibles. For more ideas just visit your local library or bookstore and look at the headings on the shelves. You can even combine two or more different genres or specialties. Your used online bookstore could not only sell books on astrology but you could also sell books on numerology, self-hypnosis, intuition, tarot, palmistry, and hand writing analysis. The important thing is to select a topic that interests you.

HOW MANY USED BOOKS YOU WILL NEED TO START YOUR ONLINE BOOKSTORE

The more books in your specialty area you have to sell the better. There is no fixed number of books you need in your inventory in order to be successful. However, I would recommend at least starting with 500 titles (1,000-2,000 titles would even be better). If you only have 200 titles, go ahead and start your bookstore, but keep adding books. You do not want to deplete your inventory and disappoint potential customers.

WHERE TO PURCHASE USED BOOKS

As mentioned earlier in this book, the first place to look for used books in your specialty area is on your own bookshelves. Your personal collection can be the foundation of your used bookstore.

In addition, you will also need to start purchasing and collecting used books in your specialty area.

How to buy used books without spending a dime:

Used Bookstores - Do you have any books that you want to get rid of that you can't use in your bookstore? Instead of throwing them away or giving them to charity, bring them to a used bookstore. You can use these unwanted books to trade for books to add to your inventory. The used bookstore will probably buy your unwanted books by giving you an instore credit for the books. Friends and Relatives - You may also want to ask relatives and friends if they have any books that they want to bet rid of. If so, take the books to a used bookstore for credit.

Other low cost ways to stock your used bookstore:

Garage Sales - A great low cost way to build inventory is by going to garage sales and buying books. Purchase all of the books in good condition (more on condition later) and use the books in your specialty area in your online bookstore. Take the rest of the books to a used bookstore for credit and trade for more titles in your specialty area.

Libraries - Local libraries are another low cost resource for used books. They usually hold annual book sales where you can get books at low prices. 

You may want to check out the American Library Association ala.org - for library booksales.

Another site to check-out is librarybooksales.org

A Guide to Used Book Fairs and Sales across the count4ry can be foud at booksalefinder.com.

Thrift, Resale, and Salvation Army Shops - Another great place to buy used books is at thrift, resale, and Salvation Army shops. Start hitting all of these shops every week. You will never know what great book finds you may come across. You may find books for your online bookstore at low prices. Other books you can use for trade at local used bookstores.

Estate Sales - The best place of all to buy used books is at estate sales. My Mother bought most of her used cookbooks at estate sales. Check the newspaper for dates and addresses they are usually listed in the classified advertising section.

Flea Markets and Antique Malls - You may also want to check out flea markets and antique malls for used books. Sometimes you can find titles that you are looking for at prices lower than at used bookstores.

Book Fairs - Book Fairs, held at convention centers, high schools and libraries are another place to buy used books. You can haggle with dealers when purchasing used books. Book fairs are listed in the newspaper in the Sunday book section or check trade publications.

Remainder Table - The Remainder Table in a new bookstore is also a great place to find low cost books. Remainders are publishers overstocks: the publisher prints more books than it can sell at retail, so then sells the books for as little as 20% of the original cost. Check the remainder table at local new bookstores at least once a week. You can also shop for remainders at home via the Internet or by ads in trade magazines.

Auctions - You can also check bookselling trade publications for book auctions.

In addition, you may want to surf the Net and check out some popular auction sites, such as Ebay for used books.

Classified Ads - Check classified ads in newspapers for people selling their used books collections. You can also check the ads in various antique-collecting publications (on sale at antique shops and malls). You can also check the ABA and AABA ads for people who are selling collections or for bookstores going out of business and liquidating stock. You can also advertise in the local, throwaway newspaper for books. Your ad should read that you buy used books and what subjects you are looking for.

HOW TO APPLY FOR A STATE RESALE TAX ID NUMBER

If you are going to sell books you are going to have to charge sales tax to customers in your own state. Therefore you will need a Resale Tax ID Number. You will also need this number when buying used books - some used bookshops will give you a dealer discount if you have a tax ID number. A Resale Tax ID Number will also come in handy if you plan on selling new books and/or other items on your web site. The number will allow you to purchase items at wholesale prices.

It is very easy to file for a State Resale Tax ID Number. First of all, you need to contact your state's Department or Revenue Retailers Occupation Tax Department (You can probably contact the office via the Internet, simply go to your state's web site and email the Department of Revenue for application forms).

COMPUTER SOFTWARE YOU WILL NEED FOR YOUR INTERNET USED BOOKSTORE

You will need database or spreadsheet software to keep track of your books for your online bookstore. Computer software programs, such as Access, Excel, Filemaker Pro, Homebase, and Record Manager are what some online booksellers currently use.

The Advanced Book Exchange (more on ABE later), abebooks.com recommends the HomeBase 2 software program. HomeBase 2 is a complete bookstore management system from ABE, specifically designed for the used book dealer. You can download HomeBase 2 for free from the Advanced Book Exchange.

AN EASY WAY TO SELL USED BOOKS OVER THE INTERNET WITHOUT A WEB SITE

Guess what? You do not need your own web site to sell books over the Internet! There is an easier way. The following is a copy of Len McGrane's e-zine - One-a-Week.  The following is an excerpt from the Friday, May 14, 1999 edition:

A pioneering seller of rare New Zealand books is making money by turning a mainstream Internet trend on its head. The trend is to have your own web site. I've got mine. Your competitor is getting theirs. Glenn Haszard used to. In fact in 1996 he helped build New Zealand's first second-hand book site, but quickly decided it was money down the drain. 'I was getting a lot of hits, but not getting many sales,' he recalled. So in 1997 he went against the general trend to building individual sites and put his enormous database of hard-to-find Kiwi titles on a clearing house site in the U.S. called abebooks.com This is a giant emporium for the out-of-print books of its 4500 plus bookseller members each paying a monthly membership and regularly updating their lists of available books. 'It's a magnet for collectors,' Glenn said. 'Once you find ABE you keep coming back. It's a logical place for me to be.' Sales reflect this. He's currently turning over $120,000 a year-which includes shipping-from ABE and a second super site bibliofind.com.

The Advanced Book Exchange is the world's largest source of out-of-print books -13 million titles.

HOW TO PRICE USED BOOKS

An easy way to price your books without leaving home is to search the Web.

HOW TO GET FREE PUBLICITY FOR YOUR ON-LINE USED BOOKSTORE

Free publicity, such as a feature story on you and your business in a newspaper or magazine will greatly enhance you efforts of selling on and off the Internet. All you need is a well-written press release, black and white photographs of your products, and a mailing list of media (newspapers, magazines, TV, and radio stations). The following are instructions for getting free publicity for your business:

Write a one-page press release. This is very easy to do. Most companies and entrepreneurs send out press releases describing their products and services to editors on a regular basis. In order to get a story in the media; your press release should contain an interesting twist something creative or unique about your business.

For example, suppose you seek publicity for your hand-knitted sweaters. Since selling hand-knitted sweaters isn't unusual, add a twist to your press release in order to spark the interest of an editor. Perhaps not only do you knit sweaters for people, but you knit matching sweaters for their pets as well. The headline of your press release might read :

"Hand-knitted Sweaters for People and their Pets!" Send a photograph of yourself and your pet wearing matching sweaters to media.

A good press release should be simply written, one or two pages in length, and include the following:

Headline

Your name and phone number or who to contact for more information about the press release.

Description of your business or products - how they can be used

Details - colors, sizes, price, etc.

How to get further information.

Free publicity won't necessarily sell your products or services, but it will familiarize the public about you and your business. When the public knows who you are and has read about your business, the more willing they will be to purchase your products or services.

The following press release you can use as a guide for your own on-line used bookstore:

FOR IMMEDIATE RELEASE:

Internet Bookshop offers unique opportunity for aspiring artists usedsciencefictionbooks.com holds weekly, online auctions of science fiction, fantasy and horror artwork for new and established artists. Every week the web site features unique artwork that visitors can bid on via email. The artwork is sold to the highest bidder.

"Our web site is a great vehicle for new, unknown science fiction, fantasy and horror artists to showcase and sell their work. The artist is not charged any listing fees, they are only charged 5% of the selling price if their work sells." Says Laura Peterson, owner and operator of usedsciencefictionbooks.

Peterson decided to sell science fiction, fantasy and horror artwork because of the popularity of science fiction art auctions at science fiction conventions.

Usedsicenecfictionbooks.com not only sells artwork but second-hand science fiction, fantasy and horror books as well. The site lists over 2,000 hard-to-find science fiction, fantasy and horror titles. The web site also hosts a discussion group to discuss books and artwork.

After you have completed your press release, you may want to submit it to local media (look in your phone book) and Internet related media. Here is a list of web sites to visit and reference sources available at your local library:

prweb.com

prnewswire.com

Bacon's Newspaper/Magazine Directory (directory of newspapers and magazines)

Gale Directory of Publications and Broadcast Media (directory of newspapers, magazines,radio and TV stations)

Editor and Publisher International Yearbook (directory of newspapers)

Working Press of the Nation (directory in four volumes: radio/TV; magazines and in-house publications; newspapers; freelance photographers and writers)

Newsletters in Print (largest directory of newsletters)

FINAL THOUGHTS

Now you have all of the basic information you need in order to start and operate an Internet used bookstore. In the beginning, after your web site is copied onto the World Wide Web, you may generate few sales. Do not get discouraged, like any business - anywhere - it takes at least 1-2 years in order to become successful. You will not get rich over night via the Internet! Your Personal Computer will not become your "personal cash machine," as opposed to what you may have read or heard.

Remember that you need to market your on-line used bookstore every single day! Get your name in cyberspace - become an active participant in chat rooms, message boards, mailing and discussion lists, etc. - spend at least 4 hours a day promoting your Internet used bookstore.

Keep writing and submitting articles to targeted e-zines. Spend at least one day a week doing this.  Keep sending press releases to the media. I recently read how one woman became successful by faxing one press release to one media contact every day - she did this for years. Eventually she received a great deal of free advertising from "blurbs" in the press.