Scott Fillmer » amazon

Amazon Kindle 2 Review After Damaged Screen Replaced

Scott Fillmer — Fri, 27 Mar 2009 17:47:32 +0000

Being the technology type, I had been looking at the Kindle 2 since it was announced and found it very intriguing. Most everyone that looks at the Kindle, 1st or 2nd generation, balks at the price of the device but being a photographer and traditionally having to spend $1,000′s on one single lens, spending $360 on a device that will save me money on the price of books didn’t seem like that much to try it out.

Not that $360 isn’t a lot to spend on the Kindle 2, but I just sold a few lenses out of my camera bag that weren’t used to much and a few days later the Kindle 2 arrived. After using the Kindle 2 for a while I felt like a review of this new piece of technology would be appropriate, but it didn’t end the way I had anticipated.

I will say right off, it is the best, most sophisticated ebook reader (that displays eink as it’s called) and theoretically it can digitize your book collection or library much like the iPod has done for music. If you just want the conclusion, scan down to that section and I will sum it all up for you. Some of you may know that I have a Kindle Screen that was damaged (see Damaged or Defective Kindle 2 Screen) so this was after the replacement had been sent by Amazon.

The Kindle 2 Graded

If you want the short of it, here are my grades for the Kindle 2 on different variables in no particular order.

Price – [B]
Size, Weight, Shape – [B]
Screen – [C-]
Keyboard – [D]
Software – [C-]
Ease of Reading [A-]
Ease of Searching books [D]
Availability of Books for the Kindle [B+]
Price of Books [B-]
Price of Periodicals [C-]
Durability [C-]
Customer Support [A]
Portability [A]
Practicality [C]
Internet Browser / Browsing [F]
Multi-use Portable Technology Device, i.e. it is a reader, only [D-]
Highlighting and Taking Notes [C-]
Compared to Other eBook Devices [A]
Saving Trees [A+]
Creating a Digital Library [A]
Ability to Mimic Reading a Paper Book [D-]

All the point above are not weighted equally of course, but overall, I give the Kindle 2 (not having ever used the Kindle 1 but having used most modern portable decives on the market) a total grade of a “C”.

1. Price at $359 – About Right to Me

This is one of the biggest complaints of the Kindle 2. It costs $359 and since it is only sold by Amazon you can’t really find it for less than that anywhere. You can find a few used on eBay, but none of the Kindle 2 and Amazon only has a few Kindle 1 in the new/used category.

To me, the price is about right for what it does and the competition it has right now. When the iPod first came out it was (and still is) about that price and people couldn’t buy them fast enough. Of course the difference is the Kindle 2 requires that you actually read something. The iPod since it deals with music has a much larger appeal to the 18-28 age range, and they will usually plunk down $350 for just about anything if they want it bad enough.

I would not or do not expect Amazon to lower the price any time soon until the Kindle 3 comes out, and why should they. Amazon is probably making bundles on these Kindles with them priced at $359, and I think the price is about right.

2. Overall Size & Weight – OK, But Could be Bigger

The new Kindle 2 is light years ahead of the Kindle 1 in size and weight. It is about the size in total of a paper back book (not the screen size, the entire device). It is light and thin, but if I was wanting to ready a long book I could have used the Kindle 2 even larger than it is. The thickness is about right but I would love to see one about the size of a piece of paper.

3. The Screen – Can You Say, Touch, Color, and Backlit?

The screen is a 16 color grayscale, matte screen. To me, this was one of the bigger disappointments of the Kindle 2. The screen was to small, it was not in color, it was not a touch screen, and the biggest for me, the screen is not backlit.

Although the font size can be changed, the screen was too small to really be able to read a full page (on paper) on the Kindle 2. I would like to see one page on the Kindle equal one page on the corresponding paper book. Maybe I am jaded by using an iPhone for more than a year now. I want to be able to touch the screen and have it do what I want, not move some cursor around like I’m in DOS and in the same respect, a color screen is pretty much standard on everything today and it just looked old school. The last biggie on the screen was the fact that it wasn’t backlit. I would have preferred to be able to sit in a dark room and read without the need for a reading light.

One last bit on the screen. All of the images are all converted to gray, which in itself is fine, but it lost detail and did not show what I am use to in a high res screen that shows great detail in black and white.

I understand all those things go to battery life, but I would sacrifice a 2 week battery for one that lasts a few days for the above changes on the screen.

4. Keyboard – Needs Some Help

I know I keep going back to the iPhone, but that I the current device I am use to using. The keyboard on the Kindle 2 is a full keyboard, but it works like the crackberry qwerty keyboard’s of old. This is because the keys are very small. I would have liked to see them closer together and much much larger than the small round dots. They were hard for me to use, but it was a full-ish keyboard. All special characters were like a comma, or punctuation, were all on the shift end, which was a pain.

I did like the fact that you could type out comments and notes, but they were hard to get right and easy to mess up.

5. Software Interface – Good, But Not Very Sophisticated

The interface where you actually read the books is good for what it is intended for, but it lacks much of the functionality of today’s handheld devices. It has wireless through Sprint’s 3G network, and I seemed to get a signal everywhere, even where I don’t on my iPhone (which isn’t really saying much). Books downloaded quickly and the newspaper subscriptions were always on the Kindle 2 the next morning when I went to read them (I did the trial for the USA Today).

Reading on the eyes is good, probably because of the grayscale I didn’t like, and you can change the font size so it suits your needs. Taking notes and highlighting on the Kindle 2 is ok, but no where close to perfect. It saves all the notes into one .txt file and to extract the information you have to parse through all the different notes from the other books. It doesn’t separate out notes for specific books but puts everything all in one file. I would have much preferred the file attach to the actual piece I was reading.

Flipping from book to book is a little slow but works well. If you are trying to get back to a specific place in a book it is a little hard to do unless you bookmark the spot. Moving around in the books from place to place is much harder than flipping through the book.

Conclusion

In the title I said the “not-so-normal” review, because in the end, I returned my Kindle to Amazon, twice. I have never been accused of being old school. I will embrace technology and new developments before they are even released, but I still buy all my music on physical CD’s (to burn to my iPhone, iTunes, iPod etc) because there is something you can’t get from a download, the art the artist put into the album. The design of the artwork, the stories they still include in the booklet, silk screening on the CD itself, back cover artwork, and of course the ability to burn without digital rights management crap.

After using the Kindle 2 for about a week, I took it on a trip to South Carolina and while I was on the trip, the screen became damaged or something, but it wasn’t working correctly (see Damaged or Defective Kindle 2 Screen // Photos). After receiving a new one from Amazon, I continued to use the Kindle for a while and finally came to the conclusion that I did not like the Kindle 2 enough to actually keep it.

In the end, it came down to something I totally didn’t expect. I found out that you can not (at least not easily) replicate the actual reading of a book on paper. You smell the pages, you can flip through pages, write in the margins, underline passages and as you do so, you become part of the book. Each book is different. The covers are different, the font size changes, the thickness of the paper, all which is very hard to duplicate in the electronic world and you end up reading all these different books and they all look and feel the same.

As a friend would tell me, it’s not art. The art of reading, and a lot of the time, it is the art of reading in the way the author intended. This says nothing about the Kindle 2 device because it can’t replicate the actual flipping of the pages like you can when you physically hold that book.

If you want to read a book straight through from beginning to end, page after page, the Kindle may be right for you. I want to get lost in time, lost in the pages of paper, ink, and verse, and at least for now, I will stick with the printed book.

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Damaged or Defective Kindle 2 Screen :: Photos

Scott Fillmer — Mon, 16 Mar 2009 17:24:28 +0000

Last week I traded in a few pieces of camera equipment for the new Kindle to really see if I could just whip through books at lightning speed and to my surprise, after about 2 days of use, I managed to mess up the screen. I am in the middle of doing an in depth review of the Kindle 2 that I will post at a later date, but after having the Kindle 2 for about 2 days, I seems that the screen on the Kindle 2 was damaged beyond a simple fix. The reason for this post was really to show what the customer service representative at Amazon did to fix the problem.

For those who don’t know, I really missed my calling in life to be a product tester. No matter what the product, I can an uncanny way of being able to break the unbreakable and find problems or issues that manufactures somehow seem to miss. I was told that the Kindle 2 was tested for durability and could withstand a drop from a two story building, but 2 days in my backpack managed to screw up the top of the screen.

Once I went through the normal troubleshooting that I knew how to do, I called the customer service number for the Kindle. She walked me through a few other tests, had me “reboot” the system (you can hold the power slider over for 20 seconds and that will initiate a reboot on the Kindle 2). After that (all of which took about 2 minutes total) Amazon told me they would just ship me a new one overnight. No questions asked, they just shipped me a new one. They paid for the shipping to return the old one, and I transferred all my book from the old kindle to the new kindle. It was easy as it possibly could have been.

As for what I did to the Kindle, I have no idea. I did put it in my backpack (in its own case) and perhaps to much pressure what applied to the top of the screen somewhere. I am not sure about the 2 story drop, didn’t try that, but I will be a little more careful with it in the future regardless. I was totally and completely thrilled with Amazon’s customer service on the kindle.

That doesn’t really have anything to do with the practicalities of the Kindle, that will come later, but as far as their customer service goes, it was great. Having also sold on Amazon for years, I can say that all of Amazon’s customers service is geared towards their buying customers (as opposed to their sellers) and they will bend over backwards to provide the best service they can.

You can see the screen issue on the photos below. It covers about an inch from the top with a blank line of gray going across the screen with a slash in the upper left corner. The last two shots are what the screen shot from the damaged kindle looks like (so it is seeing everything correctly under the screen issue) and what the new one looked like when it arrived.

Update May 21, 2010

I thought I would update this post with a few comments since it is still one of the most read posts on my blog. As some have suggested, my Kindle was NOT dropped. I simply put it in my backpack, which also wasn’t dropped, and took it out an hour later and it showed up with the damaged screen.

I did get a free replacement from Amazon, but I returned the replacement within a week for a refund (see my review A Not-So-Normal Kindle 2 Review for my reasons), but one major reason was I knew the “free screen replacement” was only going to last a short time, and it was a one time shot. Amazon did replace the damaged screen, but they said they weren’t going to do it again. Looking back now, more than a year later, it was the best decision and I am not super happy with my iPad.

Update February 12, 2011

As this post still gets heavy traffic and questions, I will say after using and testing the Apple iPad since it came out, I have never had a better ebook reader than the iPad and I am looking forward to seeing the new iPad 2 some time around April. The Kindle App for the iPad is one of the ebook reader apps I use, and although not my favorite, I do use it frequently.

The problem I still have with the Kindle is you basically can’t do anything else with it other than read a book. I can type out notes and highlights in my Kindle app on the iPad and it works great. The one great thing Amazon has done for the Kindle is continue to lower it’s price, but if you have an iPad I’m not sure what use one would have for the Kindle.

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We are No Longer Selling Books as Amazon Marketplace Sellers

Scott Fillmer — Thu, 05 Mar 2009 15:10:01 +0000

It’s official, we are no longer selling books on Amazon. For those of you who didn’t know, we have been selling books on Amazon in the Amazon Marketplace (those are the used and new books you see when Amazon is sold out or when you just want to buy the same book Amazon sells for $39.99 for $.01) for years. Yesterday we sold all our remaining inventory, some 4,000 used/new books in one large bulk sale to a buyer in Texas. For Deb and I, the books had become (as Andy Stanley put it last week) the old sofa that no one wants to get rid of because it has always been there.

We started selling book on Amazon at the same time we were full time eBay sellers (eBay lost out as a viable place to sell as a business long long before Amazon) back in 2005, and sold full time on Amazon in 2006-2008, and it was some of the hardest work, most laborious, and in the end least profit making work I can ever recall doing in my life. It came at a time when Deb and I needed to work from home, needed and wanted to work together, and many blessings came our way over those years of selling books online.

Over our selling life on Amazon, we sold over 9,000 books at a retail price of $65,000 (that’s not as much as it sounds when you divide by 3 years and then start thinking profit margins), kept a high feedback rating, and learned a lot about hard work and to appreciate what we were given. Not much different than what we gained and learned from our previous businesses we started and ran together, except that this particular one took over our entire house top to bottom.

After running several small businesses over the past 10-12 years I have come to understand that each business or product has a defined life cycle, especially when you are running very small self made businesses. Products come in and out, jobs, customers, and life in general, has a lifespan or timeframe where some things work well. The key is to know when it is time to move on and get rid of the old sofa. For the books, yesterday was that day, and we were both thrilled. There were many many reasons, but knowing it was indeed the right time to let it go was a good feeling.

Anyone that wants to know the inner workings of selling on eBay or Amazon feel free to drop me an email. Combined I think we have about 12-15 years experience selling on both platforms and we lived and breathed eBay and Amazon, so we do know our way around. We certainly know how to get in trouble with big brother, and how to survive when the rules get changed (and they always do).

Our online selling life was great, and really is always something we think about no matter what we are working on or doing. In those years, we managed to:

work together 24/7, netting 20,800 more hours spent together
fought off fraud
and copyright infringement issues
fended off domain landsharks
had $300,000 in sales without making a profit
sold alongside corrupt competition
continually fought customer theft
avoided a few lawsuits
didn’t sue a few times when we could have
were falsely accused of anything and everything
Witnessed to many (I hope)
were praised and awarded
ridiculed
made some great friendships
ate at a huge unknown number of restaurants
filed for our own patents and trademarks
never clocked in once
travel to every state in the country
live in a bus, apartment, house, tent, campground
lived in Nevada, North Carolina, Florida, Texas, Alabama (and many others)
filled approximately 250,000 orders
counted approximately 2 million crystals
imported products from Austria
invented our own products
worked for a competitor
took 50,000 product images
went through about 30 computers
used miles and miles of tape, boxes, and packaging
cried, laughed, bled, and cherished every second

Thankfully for us, now, we have both moved on to a new chapter in our lives together and it doesn’t look like there will be much online selling involved, and that’s a good thing, because I am exahusted.

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Amazon Kindle iPhone App and the Future of Paper vs eBooks?

Scott Fillmer — Wed, 04 Mar 2009 17:34:00 +0000

This morning Amazon released the new Kindle iPhone App, or an iPhone eBook reader. Since I do not yet (but probably will soon) have a Kindle the news of the Kindle iPhone app was really intriguing, but I started wondering if the app was putting the horse before the cart. The very first reaction on the Internet was people saying they were disappointed they bought the Kindle and now they can get this on their iPhone. Totally wrong way to look at it altogether. What Amazon did by making an iPhone app for the Kindle was make their product more relevant and more useful than it was last week.

I won’t go through a comparison between the two, there is a great review over on CNET, see Comparing Kindle 2 with Kindle’s iPhone app, but one of the great features is being able to read a book between the two devices. It doesn’t come quite as close as Seth Godin’s request in Reinventing the Kindle (part II) to share books between Kindle users, but it comes closer. If Amazon keeps going down this road they will really make the Kindle a breakthrough device.

Breakthrough in the same way the iPod was for music, the Kindle can potentially be for books. Everyone grumbled about the price of the iPod, and it took until the 2nd generation for me to plunk down the money for one, but after a while, people realized that the iPod revolutionized the way we listen to music. There will always be people who want to read on paper, but for many, paper is a hassle, uses trees, and culturally is on the same track and path as Kodak 400 speed print film, but it’s more than just that. Don’t blink, traditional media is going fast, and in some cases pretty much gone.

Photography – Print Film —> Digital (almost totally complete at this point)
Music – Vinyl –> Tapes –> CD –> Digital (niche markets for anything non-digital)
Movies – Film –> Tape –> DVD –> Download (slower but almost there)
TV – Tube –> Cable –> Satellite –> Streaming Live (computer only is coming)
Books – Paper –> eBooks / Digital (the slowest of the 4, but catching up)
Magazines / Newspapers –> Paper –> Digital (totally dying media in paper form)

My wife is currently working on her Master’s degree and last semester she spent something like $300-$400 on books. After the Kindle 2 came out, I started looking at which books she bought were available on the Kindle. About 30-40% of them are currently available, at $9.99-$15. She paid $40-$50 for some of these books which can now be downloaded on the Kindle for $10. Doesn’t take a genius to figure out the savings potential for College students all over the world, and seeing that Amazon is working on things like iPhone Apps is only going to make the Kindle more and more relevant in our society’s future.

Sometimes we go kicking and screaming into the future, and change comes with a fight. The Kindle / iPhone app is a great example of a transition of all forms of media to digital, it’s just a question of how long will we hold on to the past print mediums because that is what we are use to today.

Update March 2011

I have since written an update to this post in light of the iPad, which makes eBooks even more appealing, you can read that posts Printed Books vs iPad or Kindle eBooks and the Future of Books

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We Now Have Boxes of Books for Amazon and for Charity

Scott Fillmer — Sat, 03 May 2008 01:30:30 +0000

Friday was a book moving box lifting day. Today was order day and we processed and packed up all our current orders to ship out. This includes moving all the boxes to the car and then taking a visit to our book warehouse to lift more boxes of books, which is the photo shown here. We usually collect all new books, clean them up, organize, and then stock them on the shelves both here at our business and here. Today was hot, and required a lot of heavy lifting. It is quite a work out to move 50-60 pound boxes every day for a good part of the day, but it also gets very tiring physically.

I took this quick image with my phone on our way out, these will be left for another day. For those of you who are unfamiliar with this particular blog, one of our Internet businesses is dealing in books. Deborah and I have sold books on Amazon for quite a while now and part of our daily routine is a lot of heavy lifting of boxes and boxes of books. It can be quite exhausting being that both our offices are up one full flight of stairs and each and every single book has to make its way up, then down.

Everything Else

Some new music did arrive today from my trading buddies over at LaLa. On this list for today was Robbie Williams, The Ego Has Landed (which arrived broken in half), and The Bravery with their self titled album. It was an exhausting day and I am looking forward to the weekend where there should be plenty of grass to cut.

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Lifting Books for Amazon and Some Clear Cut Logging

Scott Fillmer — Thu, 17 Apr 2008 01:26:58 +0000

It finally warmed up a little bit, just in time for me to do some heavy hauling. What I felt like I did all day was carry boxes up and down the stairs, that’s about it. It is a real workout to carry 50-70 pound boxes of books up and down a full flight of stairs all day, but that is what the work requires right now. My legs have grown much stronger (and more tired).

A Day for Boxes and Books

Today was a day for moving boxes and books. We finally picked up our last load of book/boxes and did not have the energy last night to bring them into the house. So, after going through my daily email and minor work items (and some food) it was off to unload the trailer. Probably about 1000 pounds in total, which I brought up our flight of stairs to fill the landing area, the last bare spot in the house.

Boxes and Books and more Boxes

The house is now completely full of boxes of books. Probably over a years worth of boxes to go through and list, sort, sell, shelve, and so on. It was a great blessing to receive such a large supply but also an eye sore that will be with us for a while now. Deb can only go through and list about 50 books in a day, twice a week, it is just a very time consuming thing to do. The other days we have to package and ship said books that have sold. At least as far as inventory goes, we are greatly blessed.

Images Transfer Continues and Blogging

I am still trying to transfer over all my stored images on disc, to my large HDD. I can only do a few a day but I am cranking through them when I have time. I have about 75-100 CD/DVD’s in total, which is I guess about 250 GB’s of images to be moved over. I started working on the blog for my mother in-law, Georgia, which is where this journal blog got its start. I posted the first journal entry, Sunday, June 2, 1991, which should go through 3-4 years of posts, if I can keep up with it. I doing one journal entry per post, when I get a chance. Suddenly I have way more things to do than I have time to do.

A day I was finally able to get in a full walk about. I got in a full hour of walking at about 5 miles (and a little hoops as well). My daily walk, once around the beautiful trees of green now has the view below. I think they are finished clearing this one area, must be, not much left. They are supposed to replant at some point.

There is Work To Do Too

Of course, my daily routine of work items continues each day. This varies from day to day but I finished up some consulting work and hopefully will start to bid on some projects on Elance.

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Get Ready for the Fall Holiday Shopping Season

Scott's Misc — Tue, 06 Nov 2007 14:00:21 +0000

Do you want to increase your sales, ad revenue, and ultimately your profits in a short period of time? Was your online storefront or website ready last year when the holiday selling season rolled around? The time to prepare for the Christmas holiday season is right now.

Many retailers can sell as much in the few weeks between Thanksgiving and New Years Eve as they sell all year long. Don’t have an online retail store that sells a product? Well, don’t think that eCommerce storefronts are the only websites that see an increase in traffic over the Christmas season. If you run a commercial, non-product based, website (like a blog) you can also take advantage of the increased online traffic that often starts when the weather gets colder and visitors are hunting around for good deals. Don’t be caught unprepared and leave revenue lost between being unprepared, no inventory, and bad customer service.

A recent article on the specifics for your online store from JennyHow titled, 8 Tips To Boost Sales For The Holiday / Christmas Season Immediately, talks about important customer service steps to take during the holiday season. In this article I will take a look at a few other ways to take advantage of the increases in online traffic.

Just take a look at Amazon for example. Right after Halloween was over, they moved to to logo with snow and changed the look of their site for the holiday shopping season. Amazon has Amazon Gift Central, along with great Gift Lists and Wish Lists, Amazon Gift Certificates, and many other great ideas that work. Of course, we all can’t be Amazon with their resources. So what do you need to do to be prepared when the big buying starts?

Ramp Up Your Inventory Levels

One of the criticisms of online retail businesses when the tech boom first started was they did not have the inventory on hand to fulfill the orders they received. They are as many different ways to manage your inventory as their are ways to paint your house, but you can minimize some issues up front and prepare for others.

To state the obvious is to say, have enough inventory on hand to fulfill all your orders between November 21st and December 31st, but that isn’t as easy as it sounds for a small business. You have to carefully plan your cash flow needs to be able to buy additional inventory over the holiday selling time period. Cash flow for small businesses is usually as tight as it can be, so make adjustments as early as you can, before you need the inventory and can’t fill all those orders.

There are other methods for increasing your inventory counts for the holiday season like drop shipping, see How to Make Money Drop Shipping on Amazon or eBay, but you don’t want to risk your good customer service and reputation for a last minute deal with a company you don’t have a previous relationship and can’t guarantee a positive outcome for your business.

Have Quality Articles Ready to Publish

If you are running a blog, you have inventory to keep on hand as well. Make sure you are publishing high quality content (your inventory) for those new visitors you might only see during the holiday season. Make sure you have a good supply of quality articles ready to publish when you don’t have time.

The holiday season can be filled with family and fun (or something like that) but it can also take a lot of time you might normally use to post, do research, and everything else you do to maintain your blog. Trying to do tech writing while your in-laws are visiting can be challenging at best, so be prepared in advance and ramp up your inventory levels.

Use Gift Certificates, Gift Cards, and Coupons

As buyers have become more Internet savvy they have come to expect to find some good coupons or specials, especially around the holiday season. You don’t have to give away the store, but get a few promotional coupons ready to send out to your mailing list, or make them readily available on your website.

In addition to a few different coupons you should create some kind of gift certificate that your visitors can buy to give as a gift for later use on your storefront. You see these gift certificates everywhere because they are guaranteed revenue, cost almost nothing to produce, and each year a certain percentage go unused.

Use a Blog Contest or Door Prizes

The use of contests is rampant among the blogging community for many reasons but there are good ways and not so good ways to generate traffic through blog contests. I could probably do an entire series on the pros and cons of blog contests but you want to make a good first impression to those holiday visitors, so use your blog gift certificates and door prizes in an intelligent manner.

I recently came across a blog contest that I did not enter, AhTim.com 1st Blogging Online Contest, and I almost didn’t make it to the end of the post because the first part of the “contest rules” were so confusing and complicated I wasn’t sure even the owner would know who won. Nothing personal, he is trying to develop his blog and build traffic like the rest of us, I just think a blog contest should be VERY easy to understand. Great site, just a little confusing to me.

If you are going to use a contest that has a limited prize or value (say something under a $500 total value), make it as simple as possible. One rule, one way to win, one prize offered, something that even a casual visitor can follow and become engaged with on your blog.

Provide Good Customer Service

This is probably the most important for customer acquisition or retaining those valued customers for future purchases. The issue of customer service is a standard item among small businesses but it shouldn’t be overlooked. Just plain good customer service can go a long way and much of the time is one of the lessor expenses of the fall season.

Answer your business email as soon as you can, return customer phone calls promptly, ship your products quickly, and offer a clear return policy your customers can understand. These are common issues but can quickly become out of hand when multiplied by a higher volume over the holiday shopping season. You provide customer service with your blog as well. Make a good first impression with new visitors and you can make the holiday visitors regular subscribers long after the holidays are over.

Concluding Thoughts

With a little bit of planning you can have a successful Christmas selling season and still keep some of the increased traffic next year when the hype of the holidays has died down. Get those articles written now if you can, think about what coupons, door prizes, or other promotions you might use over the next few months, and get ready for the traffic to show up at your door.

How is your company preparing for the holiday season? Are you planning for any new promotions over the next few months? If so what are they?

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How to Make Money Drop Shipping on Amazon or eBay

Scott's Misc — Fri, 26 Oct 2007 15:49:57 +0000

Are you tired of competing with a drop shipper or drop shipping company that does not ever touch the product, house, or package the product, seems to sell more, and make more money than your competing businesses? You probably are if you are a company that spends time finding wholesalers, buying inventory, cataloging, indexing, valuing, packaging, and all the normal business practices that go along with running a business that carries an inventory based product.

I received an email this week from a “buyer” on Amazon. He purchased one of our books and the subject of his email said, DON’T SEND PACKING SLIP OR INVOICE PLEASE, in all caps, but it was his email to me that told me the story:

Would you mind sending this package without a packing slip and/or invoice? I would really appreciate it. Also, please use delivery confirmation, if possible – I only make this suggestion, as the USPS is far less likely to lose the package.

[item sold and order number was inserted here]

If this item is a different condition (used/new/etc.), binding or media type softcover/hardcover/tape/disc/etc.), edition or version (international/etc.) or differs in any way from your listing, please refund this order immediately.

You don’t need to respond to this email unless there is a problem with the order.

Besides the fact that Amazon requires you to send a packing slip with each order, the shipping address was completely different than the email name or company, so it was obvious to me that this was a drop shipper and we were now the fulfillment company. This email was automatically generated and I had no choice at this point other than to just ship the order.

A little looking around and I could find a store with similar products and a name close to the email address where all the books were extremely high priced and “ready to ship” within 24 hours. The book we sold to this company sold for about $5.00, it was listed on their website for $35.00. You have to love that markup, I would, and if I could realistically sell this book on Amazon for $35.00 in a “reasonable” period of time, I would.

Even if you don’t know what I am talking about you are probably competing with them. Think about it for a minute. You can sell a product you don’t own, one you don’t have on hand, have someone else ship it (from anywhere in the world), not handle returns and customer service, and you spend your time collecting the money? Sound good? If you don’t like competing with these companies, you can always join them. Just do it using legitimate business methods.

There are many shady and just about unethical business practices that drop shippers and drop shipping companies will use, especially on the systems setup to amplify this type of service like Amazon and eBay. You can really apply this to just about any platform for selling like Amazon and eBay where you can setup and sell a product in a short period of time for almost no money up front.

What is a Drop Shipping Company

I have to say from the start, all drop shipping companies are not bad. Drop shippers do have a legitimate sales channel and do work with wholesalers and develop a relationship with their business partners and some times it works fine. That isn’t really what I am referring to in this article though. But lets look at the definition anyway.

Drop shippers are generally companies that specialize in one field or niche market that have setup wholesale or distribution channels to sell products (or services), most of the time to the end consumer, by doing the work of the sales person or sales company for the wholesale or distribution warehouse.

These drop shipping companies usually do not see the product, but they will setup a storefront with samples, a website with photos and generally information about the products with some type of eCommerce shopping cart system to sell the product. Once a product is sold, the sales data is sent over to the wholesaler or warehouse company and they ship it to the customer.

You as the dropshipper will most likely not pay for the inventory until it sells. So if Product A will cost you $5.00 to buy, you can setup your website to sell it for $10.00 and when you sell it, you have a net gain of $5.00. Probably the hardest part of this type of business is the website. You have to do the design, shopping cart system setup, marketing the product, in this case through Amazon and eBay.

Get Rich Quick Schemes?

Not all of these companies that are making loads of money are doing it in a manner that either Amazon or eBay would prefer, but they can easily just move from one login ID to the other without much trouble, so they can just continue their practices untouched, sometimes for a long time.

On Amazon, they do not care if your listings are for sale using a drop shipping company, as long as you don’t use listings from other sellers on Amazon and you still have to maintain the normal seller performance stats that they require of all media sellers on Amazon.

There are so many articles that have been posted on blogs about drop shipping that you can quickly see there are some schemes in this field, as there are in most fields these days, but one recent article, The Best and Worst Of Dropshipping, does show the pros and cons of drop shipping quite well.

If you are interested in a legitimate drop shipping business, just do your homework and go by a few quick rules of the trade.

Pick your supplier or wholesaler very carefully.
Develop a relationship with them so their shipping problems don’t ruin your reputation and cause you to loose your sales channel.
A bad reputation on eBay or Amazon can quickly ruin sales regardless of your standing with either of those two companies.
Consider the location of their warehouse and how long it will take for a package to arrive. A wholesale company in New York that is also an importer will probably deliver more quickly than a company located in China.
Consider the quality of the product you are selling. Is it cheap for a reason? Lower quality items sell well, but they also have higher complaints and more returns to deal with.

How to Compete with a Drop Shipper

I always like to look at how the others do it so I know how I can adjust to compete, if possible, with those who choose less ethical business practices when selling online. If you are a company that does not drop ship then you carry a product, package, and ship the product. You have to buy shipping supplies, hire employees to package the products, AND you have to do all the website design and marketing as well.

Most likely you can’t compete with their costs. Just the fact that you have to buy your inventory gives you a cost they don’t have. COGS isn’t non-existent with the drop shipper, it just doesn’t take place until after the sale. Yours take place BEFORE the sale. If you can’t compete with the cost, don’t try, put your efforts in other areas.

Where you can compete is in the customer service and reputation. Many (legitimate) drop shippers will have to sell their products to a customer without knowing what it is that the customer is receiving. You know, you packaged the product. So provide the best customer service and your ranking or reputation will almost always be higher than that of a drop shipper just by the nature of the business. This will drastically increase the repeat buyer rates and the acquisition of new customers.

Have a superior product. Many drop shipping companies will ship products our of China. All you have to do lately is a search on “china lead recall” to see the results of low quality products. We competed with drop shippers on eBay for years by importing a superior product from Austria, into New York, then to our warehouse. Our competition would ship a “like product” out of China and the two products compared together were laughable.

How to Make a Fortune of Money Online, the Wrong Way

I said above that I always want to know at least “how” the other guys do it, so I can make adjustments, but sometimes you just can’t compete. If there is not a set of standard that people follow in business, you just can’t compete with it, and you shouldn’t try either.

Eventually these sellers houses will come crumbling down and they will have to move on to other areas. You just have to survive the short term while they are taking sales away from everyone else and hope they do get caught. On eBay and Amazon that might not always happen very quickly. In my own experience, after selling full time on eBay for about 5 years, I gave up hope these guys would be removed.

How to Do it On eBay

What is the official word on eBay? Well, eBay says:

Sellers must accurately represent the location from which their item will be shipped in the item location field. False, inaccurate or misleading information about the shipping location of an item is not allowed on eBay.

That sounds pretty vague, but it is clear to me they do not want a big volume of dropshippers. That says you can not drop ship on eBay, right? Well according to the article, Ebay and Drop Shipping, 95% of eBay home businesses drop ship? I am not sure how accurate that statement is but even if it is half of that, does that mean half of the sellers on eBay are violating the Item Location Misrepresentation Policy?

The wording use to be more clear than that, and I think it is still in place. You can not ship an item that you do not hold in your possession.

So, on eBay, you can just scrape content from the listings and sell for just a slightly lower price or sometimes a much lower price and ship a fake. This practice has been raging in the DVD / CD area on eBay for years. You just buy a counterfeit product out of China (we all know that is where a majority of the fake products come from) and sell them as genuine products.

eBay has been fighting with this for years and found it almost impossible to stop. In my own case, we would have other “sellers” scrape our listings, reproduce the exact same titles, content, and shipping rates, and sell cheap knock-offs of what we were selling. What was interesting is they weren’t selling a “fake” product. It was a real product manufactured in the Czech Republic but it was sold as the exact same product we sold, manufactured only in Austria, and they would just drop ship the product from somewhere in Asia, many times out of Hong Kong.

How to Do it On Amazon

On Amazon you can I think it is a little easier to setup and make some real money, especially if you know how to program even in the slightest bit. Amazon makes their API code available where you can pull large amounts of data just by writing a program.

This is the one, two, three of how they do it, and you don’t have to be a programmer to do it, just anyone with half a brain can accomplish this. Go through and find some good books on the Amazon ranking. Try the best seller rankings and you will see a list of some of the fastest selling books, but you don’t have to use these, just anything with a high selling price and a ranking will do.

Once you find something that will sell, and for a good price, just list it on your own store, usually for a much higher price, and wait for it to sell. Once it sells, you go buy the book from the lowest Amazon Marketplace seller and use the shipping address of the order you just sold. Now multiple this by thousands, sometimes tens of thousands. Using an API or some other method to scrape entire databases of listings, you can you pull the data into one single database, raise all the prices by 20-50% (sometimes even 100%), and wait for these to sell. When they do, you just go buy it from another Amazon Marketplace seller.

There are so many things wrong with this method, and you might even ask why would it even work. Well, why does spam work, because people buy from spammers. You wouldn’t think anyone would buy from a seller that sells the exact same product as you for 100% higher, but they do. Maybe the drop shipper has changed the description to read that it is a “collectible” or perhaps the buyer is just not very bright. If it didn’t work, they wouldn’t use this unethical method.

Conclusion

The two ways mentioned above are by no means the ethical way to do business on the Internet, and there certainly are legitimate drop shipping companies that work hard and make a good living. If you are not a drop shipper, you should still know how to compete with them and know how they operate. Ignoring part of the marketplace that you compete with is probably not the best alternative. So educate yourself with the practices of the legit, and perhaps not-so-legit, and it will strengthen your business to survive and compete with the other eCommerce companies selling on the Internet.

If you are competing in an area with high online fraud, an ongoing evaluation of your competition might show you that there are other niche markets that might be more suitable for your skills and ethical business practices. We learned this, not so quickly, after years of competing with drop shipping companies selling Product A, by buying product B for $.10/package and selling it as Product A. We would buy Product A for $1.00/package and sell it for what it was, a genuine, high quality product, with a good demand for sales. Sometimes you just can’t compete with a 1000% markup on your cost of goods sold.

What do you think? Has your online business been effected by fraudulent competition? Have you even looked into to it yet?

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How Buyers Can Suspend or Cancel Amazon Marketplace Seller Accounts in 5 Easy Steps

Scott's Misc — Thu, 18 Oct 2007 15:00:33 +0000

If you work or sell anything on the Internet long enough you will come into contact with all kinds of people and personalities you may never run across in the course of your daily routine. This of course is not always a bad thing, most of the time you can meet and interact with so many more people than you ever could in person, but every once in a while you will come across that individual that makes you think how far can they actually take this. And the answer can quickly become very obvious, about as far as they want to, and usually way farther than you would want them to as well.

I have sold different products and services on the Internet now since about 1993, so I have run into my share of not so pleased customers or buyers that no matter what you do or say they are pre-determined to be displeased. I think I could write a book on it, but another article that comes to mind that I will write soon is called The Customer is NOT Always Right, but I will leave that for another post.

The Customer is Not Always Right… Really

Well, this is an old saying, but buyers can go to far. The Internet allows people to say and do things they would never do face to face, even though there really is a real human behind the screen, sometimes buyers (customers) can use the Internet to take advantage of the systems in place. There is a difference between good customer service and common sense, and you have to weigh the effects of each situation. I really don’t think the customer is always right, but a company should still live by that adage as best they can. When you can’t, minimize any negative effects that might occur and move on.

Recently I came across one of those buyers on Amazon that just would not be happy no matter what we did. He ordered a book from us, we shipped it to him within 24 hours, and he received it very quickly. It was then he determined that he wanted the book to be a hardcover (even though a printing in the same edition and publication year did not exist). It was not a gift or anything, just for personal reading, same words, same everything, just a paperback copy. After explaining that a hardcover didn’t exist he demanded a full refund, and wanted to keep the book.

That is the point at which I should have just said, ok, keep my book, here is your money back, can I do anything else for you?

The customer is always right
Re-read my step 1

I Guess the Customer is Always Right After All

If I took my own advice here I wouldn’t have anything to write about, so if you don’t do step 1 above, learn something from the mistake. In the end, because of the way Amazon is setup to deal with their Marketplace sellers, I had to refund the book price and the shipping anyway, and had no means to get the book back other than just to ask the buyer to return it, which he refused.

This buyer did threaten me with the standard I will file a claim and leave negative feedback thing, neither of which I wanted over a sale like this, but it did cause me to dig into this customer service cause and effect a little deeper than I had in the past. When pushed by a dumb seller, how far could a bad or unethical buyer take it to an Amazon Marketplace seller if they so desired? As far as they want.

Is Being Right Worth Your Amazon Marketplace Account

I guess you could win the battle and loose the war pretty easily here. After knowing how far a buyer could go, I might re-evaluate how right I really was here. If I had to choose between my single book and my seller account, I would probably have refunded the guy twice what he paid for the book. In a recent blog post, 10 Steps to a 7 Figure Income From Your Site, number 5 on the list is of course, The customer IS always right. If you are in business for any length of time you will soon learn that the liability all rests on the business, and whatever the problem is, it probably isn’t worth it in the long run. The screen shot below was from a canceled account from just 4 feedbacks, it doesn’t take much sometimes.

The steps I will outline below did not happen in this case, of course, it is just the scenario I found with not to much trouble, and I know I can learn something from it. After I tried to explain to him that he was indeed wrong, I promptly emailed him back to say how unprofessional I was and if I could do anything else to let me know. As of this writing that is as far as it went.

How an Unethical Person Can Get Your Account Canceled

Noticed I have now changed to person and not customer or buyer. I really think that there is a line, usually that is the line of law, that once crossed, the individual is no longer considered a customer or buyer, and should not be treated as such. It is nothing more than simplistic fraud, and not even very smart, but, who ever said common sense prevails. If you have someone that has it in for you, especially over the Internet, they may not stop until you are down and out.

I hesitated to list these steps in the first place but did so because I found them (1) readily available on the forums, (2) something anyone could really figure out anyway, and (3) something I (we) can learn from the next time there is an unruly customer. Good customer service should be the key.

There Are Three Ratings So There are Three Steps

A little background on Amazon’s policies. Amazon has a Seller Performance Measurement plan that shows what they expect from their sellers. For the most part there are three different areas Amazon looks at, the seller’s Feedback, A-to-z Guarantee Claim Rate, and Media Refund Rate. Each of these figures need to be below a certain rate to remain in good standing. Knowing these, it is just a matter of doing the math.

1. Look at Seller’s Feedback, Times 10%

If a seller has a feedback rating that is 100% and 100 feedbacks in the last 30 days, 10% of that is 10 feedbacks. The total negative feedbacks allowed by Amazon is 5%, or in this case 5 negative feedbacks over the 30 day period. A buyer only needs to buy 10 books or 10 products and then they can immediately leave 10 negative feedbacks, well above the limit.

2. File A-to-Z Guarantee Claims

The number of claims against the seller can only be 0.5% of the orders received. The above 10 purchases would all need to be filed as a claim against the seller. This can’t be done immediately, there is a minimum time limit allowed to receive the item before they can file a claim against the seller, and if the next step is taken first then it doesn’t come to the A-to-Z claim.

3. Request Refunds Through Media Refund

A buyer can do one of the two last steps to be effective. If the buyer doesn’t want to wait to file the claim they could bully the seller into issuing the refunds. If the seller refunds all 10 products in the example above it would far exceed the 5% allowed by Amazon. Of course the seller doesn’t have to refund the orders, they can wait until the claims are filed.

The seller may also find out what the person is doing and refuse to ship the product, and in this case, the seller will need to refund the orders as well. Amazon gives you 24-48 hours to ship or refund the order in question, all of which will not be good for the seller.

Seller’s Can Take Standard Precautions

There are of course a lot of variables here. One being that Amazon will actually take action against the buyer and actually look at the situation and understand a good seller from a bad one. Another would be that the seller could follow some standard practices that might help their case and protect them from this kind of fraud.

Sellers should always ship their orders with a tracking number
Ship orders within the alloted time
Respond to all emails as quickly as possible
Keep in mind, you never know who you are talking to or where it could lead, good or bad
Make professional acquaintances that you can talk to about problem customers
Do your research first. Groups and forums are a great asset, your problem is most likely not unique
Remember step 1 above and bite your tongue

This situation outlined above would be a perfect storm situation in reality. I did find a few sellers that had some of these problems but not many. It takes a buyer that is willing to go to these extremes and actually spend their own money, Amazon would have to be totally oblivious to the buyers activities (which I doubt they are), and you would have to have some pre-existing issue or issues with one of your ratings.

My experience selling on eBay and some other channels tells me this isn’t really exclusive to Amazon. Usually when a seller account is suspended or canceled there are at least some underlying reasons that the seller or company usually omits or slants, it is just natural, and we can never really know what information the Trust and Saftey or Alliance teams have gathered to make their decision.

It does happen though, and any selling channel company that tells you it can never happen doesn’t know what they are talking about, in my opinion. A recent post about Google, Get ANY Adsense Account Banned, spelled out a similar scenario, and eBay is probably the biggest and easiest target of all. Each sales channel has its own weaknesses that customers can abuse and exploit. What is important to remember as a company or seller is that we can probably stop most problems before they become something bigger ourselves by just good old customer service.

Update, April 4th

Ironically, that is how it ended for us on Amazon as Amazon Marketplace Sellers. The email screenshot at the top was the actual email we received after a quick string of bad buyers (click the image to see the entire email). We were able to give no explanation, no time was allowed to correct what the “buyer” complained about, and no grace period or way to get back in as Amazon Marketplace Sellers. One email and we were out and our business was gone. I knew it would eventually happen, and it did take a few years for something like that to catch up to us, but in the end I knew it was only a matter of time. We spent many good years on eBay and many good years selling on Amazon and learned a lot about selling online (see We are No Longer Amazon Marketplace Sellers).

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Deborah at Work Listing Books on Amazon

Scott's Misc — Wed, 03 Oct 2007 04:51:07 +0000

Hi there, this is DK’s DH (Scott) and I thought while she was fast asleep thinking up new pattern designs I would post a sort of behind the scenes photo I took of DK hard at work. She has been really looking forward to getting started on the Secret of the Stole KAL (as I am sure all of you are as well), just a few more days to go now.

So, here you go… as long as she doesn’t delete the post once she finds out it is here

Yes, this is actually her desk! That little gray square thing she is looking at is actually a laptop she uses to correspond with all of you (probably doing so right now), the one in the background is where she does her “work”. You see which one she is using. “Did you read that book I left for you the other day sweetie”? Good luck to everyone doing the Secret of the Stole KAL, it will be loads of fun, and may even have some great surprises along the way. Scott (hopefully still the DH)