Clearing the deadwood from your online bookstore

Each time you list a new batch of books you’ve purchased, you can assume that about 25 percent should sell within three months. Within about 18 months, 65 percent to 75 percent of those books will probably have sold, depending on your pricing strategy and buyer demand for the titles you picked.

Now is the time to begin determining which of the remaining stock is deadwood and must be removed from inventory. A good starting point is a price of $10. If books are priced below that point, out they go after 18 months. Deadwood sitting in your inventory costs you money. The space the book is occupying could be used by newer inventory that will bring in profits. Be brutal. Clear space on your shelf for new inventory that will generate cash.

More patience is appropriate for higher-priced books, however. Obscure books priced more than $50 may take two or three years to find a buyer.

Once storage space becomes tight and you’ve confronted the nuisance of clearing deadwood, the need for selective buying will be more obvious. It takes time and effort to cull the losers, time you could be spending find-ing profitable books. Set guidelines you feel are appropriate for your situation. For example, you might decide to reject books you can’t sell for more than $6.