Here we go. This is the start of something BIG! Why would I want to start an Audiobooks business on Amazon Audible after 5 years of perfecting the Amazon FBA business successfully selling physical products?
The reason is simply that the Amazon FBA business selling physical products is getting more and more competitive and less and less profitable every year.
Look at this analysis.
The total number of physical products on amazon.com (no one but Amazon knows for sure the exact number), is estimated at 400 million. Actually, it is probably closer to 500 million. That is a ton of competition. Amazon FBA, (Fulfillment by Amazon) is getting tougher and tougher these days. I could write volumes about this based on my 5 years of experience, but I will not because I am preparing to leave this business behind.
How about Amazon Books, including e-books? This is actually where Amazon got started. There are over 40 million titles on Amazon for books and e-books. That is still a whole lot of competition. Again you have to be very savvy to be successful with books and e-books.
What about Audible? Amazon's foray into audiobooks is the newest of these 3 sales channels.. There are currently only 245,000 audiobook titles on Audible. That is a very small number, which means there is very little competition for audiobooks. Amazon is pushing hard to develop this niche, and sales are exploding right now. No one has a crystal ball to predict the future, but this business is likely to continue to grow well into the foreseeable future.
See this post on how the market for audiobooks is growing – https://theurbanwriters.com/blogs/publishing/rise-of-audiobooks-why-you-should-care
There are 2 main differences between the Amazon FBA business and Audible that I can see.
1) Selling physical products is a continuous run-around buying, packing and shipping physical products over and over again. It requires a considerable investment of capital and resources including manpower, warehouse space, etc. to build it up, maintain it, and also try to grow the business every day. Unless you have $ 100,000.00 to $ 200,000.00 to invest to start your own Amazon FBA business, I would strongly advise you to forget about it. Every year there are 100,000 new FBA resellers than sign up to sell on Amazon and after one year there are only 10,000 left. That is probably the most telling statistic I can think of to discourage anyone from attempting to start an Amazon FBA business that I can imagine.
2) Amazon is and will always be your biggest competitor. Even if you find a great product today, Amazon could start to sell the same product tomorrow, and Amazon is the 800-lb gorilla. There is no way whatsoever to compete with Amazon for any product. You have to pay Amazon approximately 15% commission on every product you sell, and that is before the volume discounts that Amazon negotiates with suppliers. They send out million-dollar purchase orders one after the other every single day. There is no way to compete with Amazon based on price. You are S.O.L when it comes to any direct competition with Amazon. I advise not to even try. It is best to give up before you start.
Let's compare that with starting an Audible business.
1) Audiobooks are a digital product. There is no inventory, no shipping cost, and no storage fees. There is only the cost to develop a new audiobook, which can be run from $ 500.00 to $ 1,000.00. Granted that is not a small investment, but for most audiobooks, there are monthly residual purchases of the product on Amazon, which means monthly residual income for you. If you sell 100 copies of one of your audiobooks this month, chances are good that you will also sell 100 copies next month. No additional effort is required to continue to sell audiobooks month after month.
2) There is no direct competition from Amazon on audiobooks. Amazon is not spending their time on content creation when they have so many content creators who will do it for them. Just like Amazon is not writing books month after month, they are also not developing their own audiobooks. It is just too much trouble for them when they can just sell them on their platform instead.
Please take a look at the project I am about to launch on Kickstarter. I would very much appreciate any comments you might have.
Here is the link ——> https://www.kickstarter.com/projects/jonlomb/797504796?ref=ezales&token=2b187884
I have been studying this Audible business learning all I can about it since the beginning of the year. I think few people starting an Audible business have invested as much time in research ahead of time as I have.
I also have two significant aces up my sleeve.
1) I have a mentor who runs one of the most successful Audible businesses on Amazon today. I have his ear and believe me when I say it was not cheap to get his advice, but I believe it will be invaluable to me, and to the group as well.
2) I have a close friend who works as an editor for a very large book publishing company. Of course, that includes digital books as well as physical books. I cannot say which one, for reasons of non-disclosure.
In conclusion, I would like to invite you to my group on Audible publishing. This group will explore this exciting new world of audiobooks on Audible. There is no cost to join, and no cost at any point in the future for a membership to the group.
Click here to join —-> https://markethive.com/group/originalaudiobooksgroup
You will learn everything there is to know about this business in order to become your own audiobooks Audible expert. I can guarantee it will be a fun journey, and very likely a highly profitable one as well.
Thanks for your time to read this extensive post.
I wish you the best of success in whatever endeavor you pursue.
John Lombaerde – Markethive Entrepreneur One and soon to become expert Audible marketer.