Selling Books right from the publisher

[LinxUs]

What is the name of your state (only U.S. law)? CA

I am looking at buying books right from the publisher in the United States then re-selling at online outlets for profit.

Specifically, I am looking to sell a book for double what it could be bought from directly from the publisher. I purchase the book from the publisher and have the publisher ship it to the person buying the book from me.

Customer buys Book A from me for $100 at whatever dot-com store. I purchase Book A from the publisher for $50, pay $10 for the publisher to ship to the Customer. I take a $40 profit.

Any there any legal problems against this?

 

[justalayman]

have you spoken to the publisher about this?

 

[LinxUs]

Response

Actually, it isn't the publisher's website. I was mistaken. It is an online bookstore for specialty books that are either out of print or too specific to be found at a campus bookstore. However, the company also co-publishes some of its own books, and some of its main books with larger publishers. Regardless, the place is listed as a bookstore instead of a publisher, so to speak.

I contacted them about purchasing a large order a while ago, however, they mentioned they were out of books until a few weeks. They suggested I purchase from the same online outlet I was actually thinking of selling the same books at if I couldn't wait that long.

So it sounds like to me that they don't mind or really care either way. Although I have not formally asked if I can, "purchase books from them and re-sell for a profit" or "purchase for someone else".

But again, are there any legalities against it? Aren't books bought and re-sold for a profit all the time?

 

[The_Saint]

What you are doing is called drop shipping and theres nothing wrong with it. I'm not sure why you would think its illegal.

I sell books too, and your margins seem too high. Are these International Editions? If so, selling a book with a restriction for sale in the US is illegal.

 

[LinxUs]

Response

Okay. No these are not International textbooks. There isn't enough of a market for it to be International. Plus, like I wrote, they sell for roughly $50. The bookstore site is actually run by a managing editorial board and authors of a book series that is published (I guess) externally and also in joint with another much larger book publisher.

So I'm guessing they recieve a certain number of textbooks that they sell on their own site (kinda like having someone buy your own book at Amazon). Since I am buying the item from them then having it ship elsewhere and not to my billing address, I wonder if that's problematic.

Then again, about five years ago people were saying selling International textbooks was legitament since the content was developed within the United States, researched, revised, etc. etc. however, manufactured outside of the U.S. (its cheaper). But I don't think publishers are exactly slapping people on the wrists about this one...

Like I wrote, just because they don't like it or don't want it to happen doesn't necessarily make it illegal. However, a ligitious-happy publishing company may not be too keen to warning people about the laws as much using them in a opportunistic manner.

 

[The_Saint]

Things to think about are:
- Does the company you buy from include a packing slip? Does that slip include the price?
- Does the company use branded packing material?

These are not legal issues, just something to think about.

Drop shipping is pretty common, in fact there are some large businesses on Amazon that do it. Unless the T&C of the selling website forbids it, i don't see what the problem is. A sale is a sale.

(I am not an attorney)

 

[FlyingRon]

If you're doing this on ebay you won't last too long.
First, there's NO way you're going to make the strawman margins. If you can do it, others could do it.
Second, you lose control over shippping, so once you start selling stuff you don't possess, you're at the mercy of the company you are using as a drop shipper. You can guarantee low shipping DSR points which will cause restrictions on your selling to be placed by ebay.
Third, customers tend to get pissed if they find out they've been scammed like this and may lead you negative feedback and low DSR scores.
Fourth, you lose the paypal seller protections if you can't comply with their policy (ship within 7 days with tracking) which means you will lose any complaint a customer lodges with paypal.

 

[LinxUs]

Response

Thank goodness I am not doing on eBay. Which eliminates everything you wrote. You're right others could do it and probably do it too, hence why the price for it selling is so high.

Also, people (or some big online book sellers as you mentioned on like Amazon) drop ship with me with the very same books (so if I make $100 off a $50 book, I imagine they are buying it from and selling theirs for $150?). Crazy.

But I am looking at the legalities and ethics behind it. Either one, I don't feel violates either the law or being a "nice guy". People do not have to buy it from me for x price, they are more than welcome to shop around. Isn't that like selling a soda at a ball game for $5 when you can buy it for $1.50?

No, they don't use custom packing envelopes. I have ordered my books from them and actually had used something that could be bought at a retail store.

Also, yes they use packing slips, but I've requested them ship without it.

Since I'm being drop shipped with anyways, and those people that buy for me request I don't put a slip in, I am not sure how it affects me anyways. The same book is being bought 3 times over.

 

[justalayman]

They suggested I purchase from the same online outlet I was actually thinking of selling the same books at if I couldn't wait that long.

so they suggested you buy the books from the folks you are going to sell them to. and you somehow figured out you could sell them back to them at a profit?

that's some pretty snazzy salesmanship.

Isn't that like selling a soda at a ball game for $5 when you can buy it for $1.50?

what does this have to do with anything? On top of everything else, this is wrong. If the concession sells the soda for $5, it will cost you $5 to get a soda. Unless they allow bring in soda (I don;t know any ball parks that do) the $5 soda is the only soda in town.

 

[LinxUs]

I think there is a misunderstanding. They were out of books and they suggested I buy at the online outlet I use. Well, the cheapest book on there is the one I sell so I won't buy from myself. So I'll wait the week until they get re-stocked.

There is nothing snazzy or technical about it. If someone wants to buy the book, great. If its too much, that's fine, go find that $50 book. Clearly if someone buys the book at $100, they are willing to do so. But this is what a consumer-based economy is about. If you don't like the item at the price, shop around.

The same book I am selling also sells for $200 or higher. I honestly don't know how people buy it at those prices, but oh well. There is nothing dishonest, I believe, going on.

Regarding the soda analogy. Either your really thirsty and regular, free tap water won't cut it you'll buy the $5 soda. Even though outside of the stadium it costs $1.50, inside you don't have a choice at the price. Is that dishonest? Maybe the better analogy is bottled water. Why buy bottled tap water for $1.50 when you can get it for free from the faucet? I would think this is where people would laugh and go, "Good luck selling that!". Relating back to books, the buyer has a wonderful array of choices. Shop around and find the cheaper book.

 

[justalayman]

as long as you are not limited by an agreement with the party you purchase the books from, sell them for whatever you can get.

 

[Jackp29]

I think you should get professional advice as ebay can be funny at times

 

[justalayman]

I think you should get professional advice as ebay can be funny at times

eBay cannot enforce laws. They can enforce their rules, which most likely include them being able to refuse any sale that appears illegal to them. eBay can limit a sale through their website just because they want to. It is a private company and can do pretty much what they want but OP will not get into legal trouble because of violating eBays rules.

 

[cosine]

What is the name of your state (only U.S. law)? CA

I am looking at buying books right from the publisher in the United States then re-selling at online outlets for profit.

Specifically, I am looking to sell a book for double what it could be bought from directly from the publisher. I purchase the book from the publisher and have the publisher ship it to the person buying the book from me.

Customer buys Book A from me for $100 at whatever dot-com store. I purchase Book A from the publisher for $50, pay $10 for the publisher to ship to the Customer. I take a $40 profit.

Any there any legal problems against this?

This kind of business practice goes on all the time. It's called "drop ship" (publisher or manufacturer does the shipping to your customer and you handle the payments). Just be sure any agreements you have in place with the publisher do not say you agree not to do this.

FYI, I've purchased several computer parts which were handled this way. It is particularly common for less popular items (so that the manufacturer doesn't have so much latent stock at hundreds of retailers), and for very heavy items (like the big UPS I bought last year, which came straight from the manufacturer, which saved money on the expensive handling it would otherwise incur).