How did my brand new book get in a $5 bargain bin on Amazon?

[Kendi]

Hello fellow authors, maybe some of you can enlighten me. My second book just launched in paperback on Amazon in December (Year of the Cat: The Thirteenth Realm) . I've sold a dozen or so through Createspace, but I just went in and looked at my book today and noticed how all these online bargain book companies claim they have "new" copies of my book for sale for $5.00. How is that possible? Do I make any money from the bargain bin sales? How is an author suppose to make any $$ their books?

[Mark]

I think your answer may be in what's called drop shipping. Basically, lets say your createspace book has a total cost of $10 with s/h and tax included. Now out of that $10 lets say you earn $2.

Now, you see a third party selling your book for $5 brand new. How can this be? Because they are selling your book for $5 and adding $7 worth of shipping/handling and tax in the checkout, for a total of $12 when all is said and done. They then take the $12 from whoever is dumb enough to pay a higher total price for the book, and then use $10 of it to buy your book and they tell createspace to ship it directly to the customer. In the end, they net $2 profit for doing virtually nothing. In fact, if you set up the software correctly, you can do this and have it completely automated.

As for you making money. Yeah, it's still a sale via createspace and you'll still get your commission. These 3rd parties are just working as a liaison using your book to make a quick buck.

[Kendi]

Mark wrote: "I think your answer may be in what's called drop shipping. Basically, lets say your createspace book has a total cost of $10 with s/h and tax included. Now out of that $10 lets say you earn $2.

N..."

Whoosh... thank you for the insight. I'm relieved to know I'm not getting screwed... started to panic for a second.