Anodyne
Thursday, June 10, 2004
 
Not Quite a Business Model

Shamelessly cut-and-pasted off an Amazon discussion board:

In brief:

A seller lists a book for $.01

Amazon collects $3.50 from the buyer and gives $2.27 ($.01 + $2.26 shipping allowance) to the seller.

The seller is a ProMerchant, so doesn't pay the $.99 fee.

The 15% fee on 1 cent is zero.

The seller pays $1.42 or $1.84 in postage for a 1 or 2 pound package (or less, if it is very light weight and can go First Class).

The seller cost for the book is zero, because he got it for free somehow.

The seller used scrounged packing materials, so those cost nothing, too.

The seller ends-up with $.84 or $.42 profit (or more if Expetided or International is involved).

The seller is happy with his "profit".

Amazon ends up with $1.23 from the shipping.

Amazon is even happier than the seller.

- posted by cjb @ 9:51 PM


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