Selling on Amazon: Cheapest Priced Items Don't Always Win

I often buy textbooks online because there are more choices and better prices than the campus bookstore. The other major reason is that I take online classes and the campus bookstore would also.

I buy a lot of textbooks from Amazon.com. Recently I started buying from Amazon.com’s Market Place. I also tried selling my books on Amazon’s Market Place. I sold just as I think…I buy the cheapest book possible, so I sell the book as cheap as possible. Using that theory, I sold 7 books in the first 3 days. I have sold textbooks on eBay for years, so I thought I knew how selling textbooks worked.

As sales slowed down, something interesting happened; I was selling books that were not the cheapest listed. I didn’t see a trend, but I saw it happening. Any good analyst would ask why a majority of my books were sent to the surrounding region.

I had an idea of what was happening, so I tested the theory with my next book order. I looked for a used textbook, but this time I looked for the cheapest book that was located near me. My theory was correct. There were several books that were the same low price, or very close in value, and some of these books were located closer to me than others.

The answer is a simple one and it is mailing time vs. expedited shipping costs. Standard shipping for books means USPS Media Mail; it is cheap, slow, and you can ship almost every book for less than the $3.99 the buyer pays Amazon (Expedited Shipping costs $4 more). If the book is only a few hundred miles away, then it will arrive in just a few days—saving you the $4 expedited upgrade cost.

I know I don’t like to wait a week for my order to arrive via USPS Media Mail, so I can upgrade the order for only $4 OR just order a book that is closer for $0.50 more…I will opt for the 50 cents. As a seller, this could be mind boggling, especially if you really need to unload some books for cash. Knowing what I know now, I would need to worry about adjusting my book prices to be the cheapest, because I know that someone will chose me just because I am close to them.

Update: Verizon Wireless Selling Cell Phone Extender

Over a year ago, I announced Verizon Wireless would start selling a personal cell phone extender, also called a FemToCell. Recently I moved to an area that Verizon calls a good signal area, but there is no signal inside any of the homes. I did what everyone in my position should do, call and complain. I didn't realize exactly how bad it was (other than 1-way conversations and garbled audio) until someone made a call from our place and said "I didn't even recognize her voice on the other end (of the phone call)."

I tried to get Verizon Wireless to budge on the price of the Network Extender, as Verizon Calls the femtocell, during my complaint call but there was no movement on their part. Soon after that, my wife's employer announced their current Sprint blackberries would be replaced with Verizon blackberries. I immediately check out the Network Extender and found it was listed at $199 and it now has a $100 Mail in Rebate. That means you can get the extender for $99 after MIR. That is not a bad price, provided it is just to make the phone that already should work, work in your house.

I have been using the Network Extender for almost a month. It has made a world of difference in our calls. We can actually use our phones inside the house. We caught ourselves walking outside when the phone rang, not remembering that it now works in the house. It works so well, that our backyard neighbor says his phone is now working better. He also noted that he hears these weird tones when he first makes a phone call. I told him those tones let you know that you are using the network extender instead of the VZW network.

Why has Verizon Wireless made the network extender more affordable?
I have two Theories.
Theory 1: Lower prices help people who need signal, even when there are no other reported issues in the customer's area. It can also immediately solve a signal issue where no upgrades are yet planned.
Theory 2: Verizon unveiled an improved network extender at CES in January of 2010. The new network extender supports 8 callers (currently supports 3 + 1 911 call) and EVDO (currently supports 1X). At CES, this new extender was scheduled for release in Q2 2010 (by July 2010). With these new network extenders on the way, Verizon needs to sell their existing stock network extenders.

Would I recommend the Verizon Wireless Network Extender?
Yes, if have consistent signal and call issues in your home or business. It does require a high speed Internet connection.

Can the Network Extender be restricted to keep my neighbors from using it?
Sort of, but NO. Using your VZW online account, you can prioritize a list of cell phones (by phone number), to allow them to always use the extender. Other VZW phones can use the extender when it is not in use by the priority phones.

South Dakota Alltel to AT&T transition gets closer

I have been following this news for a long time. In November of 2008, I predicted that either Sprint or AT&T would end up with the Alltel assets in South Dakota. I also predicted this time-frame for network build-out.

I still see Sioux Falls being fully on the AT&T network by mid-summer 2010 with the I-90 and I-29 corridors completed by Thanksgiving 2010.

News from the South Dakota Public Utilities Commission is this:

Will I need a different phone?
Not at first, but after 12-18 months you probably will.
Former Alltel customers will be able to use their existing handset for up to 12 months after the anticipated sale’s completion. These customers may sign up for any AT&T special promotions in effect during that time. By the end of the 12-month period, former Alltel customers will need to change to a device that is compatible with the new AT&T network.

What I read from the SD PUC statement is they expect to see a 6 month network build-out period after the Alltel to AT&T transaction has been finalized. Once the changeover is official, customers have 1 year to sign up for a AT&T cell phone.

It looks like South Dakota can put the Apple iPhone on their Christmas list. By Christmas 2010, you may also have a choice between AT&T and maybe Verizon for your iPhone service (maybe).

More Verizon Wireless iPhone Speculation

I'm a Verizon Wireless user and I have always wanted an iPhone. There has been a lot of speculation about the VZW iPhone (or even a CDMA version of the iPhone) over the last few years. Now for the latest...

The Wall Street Journal (subscription may be required) reports 'One person familiar with the situation' told WSJ that a CDMA version of the Apple iPhone is in production. The CDMA iPhone is being produced by Pegatron Technology Corp, a subsidiarity of ASUSTek Computer Inc.

This is great news, but more speculation ...Apple extended the United States exclusivity of the iPhone with AT&T through the end of 2010. This exclusivity might have been tied to the data plan available to the new Apple iPad.

This leaves VZW users, like me, still in the dark for a little while longer. The other speculation notes would be that this CDMA iPhone may also work for the Sprint network, and that would help them in their loosing cell phone battle.

Check current news about the VZW iphone here.

Disclosure: The author has a LONG Position in both Apple and Verizon.

Uniden Dect 6.0 Voicemail Reset

In August 2009, I purchased a Uniden Dect 1500 Series expandable cordless phone. I used this phone at a remote location with my Trixbox PBX VOIP system. Now that I have been using the phone locally, one issue presents a problem a lot...the Voice Mail Indicator doesn't reset in a timely manner (sometimes not at all).

I have researched how to fix this before, but didn't find a good answer. Today I found a great answer that worked.

Problem: Uniden Dect 6.0 Voice mail Indicator (flashing light) will not stop after voice mail has been retrieved.

Solution: Press and hold the Page button on the base for 5-10 seconds (the instructions said 5 seconds, but it seemed to take longer). The handset will start beeping and then will have a long beep. After the long beep, the handset is reset and the voice mail indicator is extinguished.

"Signs" that Alltel-to-AT&T conversion is still a year away

Recently I noticed a new sign posted at Alltel stores in Sioux Falls. The signs says "Now doing 1 year contracts."

I think this is a sign of how long it will take AT&T to get moving on the network conversion. I knew network conversion was going to be a long process. My original guess was 2 years until full network conversion. I still see Sioux Falls being fully on the AT&T network by mid-summer 2010 with the I-90 and I-29 corridors completed by Thanksgiving 2010. That is just an estimated guess. Note that AT&T might not actually turn on the new equipment until the entire network conversion is complete (or nearly complete) for the area. This is a "flip the switch" theory of tower conversion.

I heard (not from the most reliable source) that Alltel towers had GSM (AT&T, T-Mobile technology) on them already for roaming revenue. If this is true, it would just take a software update at each physical tower location to make the switch for AT&T official on the Interstate corridors...kind of. --explanation of kind of...Each site will need full antenna upgrades and new equipment to switch the main antenna system to GSM from CDMA (Alltel, Verizon, Sprint technology). The "backup" system used for roaming is not intended to handle as much traffic as the primary system.

Until the new AT&T system comes on line...keep dreaming about owning an iPhone.

AT&T Purchases Alltel in South Dakota

Friday, AT&T announced they bought the Alltel properties that Verizon Wireless was required to divest under the agreement with the U.S. Government. This means AT&T will be coming to North and South Dakota.

I know there will be a burst of iPhone sales in the Sioux Falls area. I know many technology minded people will upgrading or making the switch. All current Alltel customers will need a new phone when the cut-over from CDMA to GSM takes place.

From AT&T's press release:

AT&T* today announced a definitive agreement to acquire wireless assets from Verizon Wireless for $2.35 billion in cash. Under terms of the agreement, AT&T will acquire wireless properties, including licenses, network assets and 1.5 million current subscribers in 79 service areas, primarily in rural areas across 18 states. Verizon Wireless is required to divest these properties as part of the regulatory approvals granted for its purchase of Alltel earlier this year. The states represented are: Alabama, Arizona, California, Colorado, Iowa, Kansas, Michigan, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, South Dakota, Tennessee, Utah, Virginia and Wyoming.