8.01.2009

amazon marketplace

Can someone please explain how some people profit of Amazon Marketplace. I'm in the middle of listing a bunch of CD's for sale, and I see a lot of CD's being sold for a penny.

So let's say you sell it for a penny.

Amazon gives you a shipping credit of $2.98. That's $2.99. Woo hoo.

But then Amazon takes a commission of $1.79. Uh oh. Now we're at $1.20. We still have to actually ship this thing.

The cheapest you can ship a 4 oz package is $1.73. Leaving a grand total of.... NEGATIVE 53 cents.

Why in the world would anyone possibly do that?

On the other hand, often I see a cd listed from different people for $5 to like $10, and then there's always a couple of people listed at something crazy like $49. What's with that?

I don't understand any of it. Someone clue me in to the business plan at the extremes of the Amazon Marketplace.

(If you're interested to see what I'm selling SO FAR, my storefront is here. Adding CD's daily.)

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