Startup cost
$8.3k–$19k
TRUiC Business Ideas
How to Start a Used Book Store
Decision Snapshot
Used Books
Idea Score
62
Profit margin
8%
Break-even
18 mo–36 mo
Time to launch
2 wk–12 wk
Demand trend
Rising
5-yr failure rate
—
Capital intensity
Medium
Time commitment
Full time
Part 1 - How to start a Used Book Store business - Background
Books are still widely read, and many people don’t mind reading used books that are in good condition. In fact, lots of readers prefer used books because they’re less expensive than new ones.
Used book stores sell used books to customers. Some stores have storefronts, while others sell only online. Also, some stores carry all genres and types of books, while others specialize in a niche.
Our guide is in 3 parts:
- Part 1 - How to start a Used Books business - Background
- Part 2 - Our planner tool to see if this idea is the right fit for you
- Part 3 - Action plan to get started
What are the costs involved in opening a used book store?
The costs associated with opening a used book store business vary a lot depending on whether a store will be based online or have a physical storefront.
A business with a physical storefront must pay for a space. This includes rent for the space, as well as insurance premiums and utilities. Also, physical book stores usually need to carry more inventory because they have to fill their shelves with books. The total cost of opening a physical book store can range from $8,250 to $18,950.
Online used book stores cost much less to open. Their primary startup expense is inventory, which can be adjusted to a business owner’s budget. Some business owners invest several thousand dollars in inventory, while others begin with their own personal collections of books.
Online book selling platforms charge listing or selling fees. Most of the time, however, there is an option to have these fees subtracted from sales rather than paid up front. Taking them out of sales may cost more, but it keeps startup expenses low. Once business owners sell enough books to afford an upfront fee, they can switch their fee payment method.
Because online stores cost less to start up and many customers shop online, new business owners frequently opt to open an online store instead of a physical one.
What are the ongoing expenses for a used book store?
The biggest ongoing expense for a used book store is purchasing more inventory. Online stores must also pay listing fees and shipping costs. Over 80 percent of owners who have online stores keep their inventory in their home. This eliminates the need to lease storage space. Physical stores have to pay rent and utilities.
Who is the target market?
A used book store business’ ideal customer is someone who reads a lot. Such a person will be regularly looking for more books. They’ll also appreciate how much they can save by purchasing used books instead of new ones.
How does a used book store make money?
A used book store makes money by selling used books. Most books are priced individually. At physical stores, though, some books that have little value may be priced at a standard low rate (e.g. $0.05) to get customers in the door.
How much can you charge customers?
The price of used books varies greatly. Many books are available on Amazon for a penny plus shipping. At the other extreme, rare books can go for thousands of dollars. A first edition of The Hobbit was available for 7,800 EUR ($8,910 USD) at the time of writing.
To earn a profit on the books they sell, business owners should offer about one-third of the going rate for books. In some cases, they may offer a little less or more than this. Paying one-third provides a decent profit, though.
How much profit can a used book store make?
Book Sale Finder’s survey breaks income out by what business owners did before they opened a used book store business. Of those who quit their jobs to start a business:
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13 percent earn less than $5,000 annually
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15 percent earn between $5,000 and $20,000 annually
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29 percent earn between $20,000 and $50,000 annually
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19 percent earn between $50,000 and $100,000 annually
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13 percent make over $100,000 annually
(These figures include both part- and full-time business owners.)
Business owners who were involuntarily unemployed, homebound, working another job, or retired before starting a used book store business tend to make a little less than the above figures.
How can you make your business more profitable?
Business owners who are familiar with the value of rare and out-of-print books can increase their income by offering appraisals of books. All used book store business owners can generate more revenue by selling book-related items in addition to books.
Day-to-Day and Growth
What happens during a typical day at a used book store?
A book store business owner spends much of their time on the following four tasks:
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Acquiring inventory
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Evaluating and pricing books
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Listing books
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Fulfilling and shipping orders
When not working directly with books, business owners may pay bills, clean their facility (if they own a physical store), and market their store.
What are some skills and experiences that will help you build a successful used book store?
Used book store business owners must be familiar with the going prices of books, reader trends, and how to run a book store. Those without industry experience can learn about these different aspects of owning a used book store several ways:
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Pay & Associates offers online training that’s endorsed by the American Booksellers Association
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IAP Career College has an online Bookstore Owner Certificate
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The American Booksellers Association has many educational materials and events
Many books have also been written on how to sell used books. A few titles include How to Sell Used Books on Amazon, The Home-Based Bookstore and Sell Used Books Online.
Business owners who are looking for an inexpensive way to learn about the industry may try working for a used book store. Working for another store will give business owners first-hand experience in the industry and provide some income.
What is the growth potential for a used book store?
Most used book store businesses remain small businesses, which is why over half of all owners run their stores part-time. Some businesses, become local or regional chains.
For example, Half Priced Books has almost 50 locations throughout Texas and Oklahoma. Walls of Books has locations throughout the United States (mostly in the Eastern U.S.). A couple examples of single-location used book stores are Dawn Treader Book Shop in Ann Arbor, Michigan and Autumn Leaves Used Books in Ithaca, New York.
What are some insider tips for jump starting a used book store?
When starting a used book store business that has a physical store front, it’s important to select a high-traffic area. The local population should be at least 30,000 people, and the store’s location should have lots of people passing by.
When opening an online used book store business, providing excellent customer service to the first few customers who place orders is of the utmost importance. Customers decide who to buy books from based on reviews. A few negative reviews will tank a business. A few positive ones will get it off to a good start.
How and when to build a team
Used book store business owners who run online businesses frequently operate their stores themselves. Owners of businesses with physical stores may run their business themselves or have a staff. Hiring employees lets them be open longer hours.
Part 2 - Is a Used Book Store business the right fit for you?
Business Evaluation & Strategy Tool
We'll walk you through the four pillars every business needs: Points of Leverage, Marketing Strategy, Financial Model, and Personal Compatibility. At the end you'll see a personalized report and your action plan below will be tailored to your answers.
Step 1 of 4 — Points of Leverage
Every viable business has natural advantages. Below are common leverage points across four categories. Pick the ones that apply to your Used Books business. We've pre-suggested a few based on your idea — review and adjust.
Step 2 of 4 — Marketing Strategy
Without a way to connect with customers, even great businesses fail. Pick the channels you plan to use to reach your customers.
Step 3 of 4 — Financial Model
Enter your monthly baseline costs — the minimum overhead to keep the business running. Then we'll calculate how many sales per month you need to break even.
Step 4 of 4 — Personal Compatibility
A business that doesn't fit your life will fail no matter how good the numbers look. Tell us how this business fits you.
Your Used Books Evaluation Report
Complete the four pillars and your personalized summary will appear here.
Points of Leverage
Marketing Strategy
Financial Model
Personal Compatibility
Part 3 - Action plan to launch your Used Book Store business in 90 days
Nine concrete steps to take you from idea to open business, grouped into 30-day phases. Complete the planner above and we'll highlight what's most important for your situation.
First 30 days — Foundation
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Form your legal entity
An LLC keeps your personal assets separate from business debts and lawsuits — the most common reason small business owners choose this structure. Sole proprietorships and partnerships do not provide this protection.
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Get an EIN and register for taxes
Apply for your free Employer Identification Number through the IRS, then register for any state or local taxes that apply to your business (sales tax, franchise tax).
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Open a business bank account and credit card
A dedicated business account is required to maintain personal asset protection. Mixing personal and business finances ('piercing the corporate veil') can void your LLC's liability shield.
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Set up business accounting
Recording expenses and income from day one makes tax filing easier and lets you see when the business is actually profitable. Use software (QuickBooks, Wave) or a part-time bookkeeper.
Days 30–60 — Compliance & Risk
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Get permits and licenses
State and local requirements vary widely. Brick-and-mortar businesses typically need a Certificate of Occupancy; service businesses may need specific professional licensing; food businesses need health permits.
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Get business insurance
General Liability Insurance is the most common starting point. If you'll have employees, most states require Workers' Compensation. Specific industries need additional coverage (product liability, professional liability, etc.).
Days 60–90 — Launch
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Define your brand
Your brand is how customers perceive and remember you. A clear name, logo, and visual identity make every later marketing decision easier and protect you legally as you grow.
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Create your business website
Every legitimate business needs a website. Social media pages are not a substitute — you don't own the platform. Modern website builders mean you can launch a clean site in a weekend without a developer.
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Set up your business phone system
A dedicated business number keeps your personal life private, makes the business look legitimate, and lets you route calls professionally. Cloud phone services start under $20/month.