1. Selling on Amazon.com Using Print on Demand ( 按需印刷 ) and Amazon Advantage to Reach US Book Buyers By Kurt Beidler 白驹逸 This report contains non-public information which may be material. Receiving this report subjects you to Amazon’s vendor non-disclosure agreement. Any unauthorized disclosure, dissemination, distribution, copying or the taking of any action in reliance on the information herein is strictly prohibited.

2. September 4, 20071 Agenda Amazon overview Customer focus Staying in stock on Amazon.com

3. September 4, 20072 A Leading Online Media Retailer A leading online retailer of books, music and DVDs $10.7 billion in 2006 sales (66% of sales in media) More than 69 million active customer accounts worldwide Web sites in US, UK, Germany, France, Japan, Canada, and China

4. September 4, 20073 Over Ten Years of Learning

6. September 4, 20075 More than $7 billion of Amazon.com’s 2006 revenue came from the sale of Media Products

7. September 4, 20076 Foreign language books 外文书

8. September 4, 20077 Chinese Books 中文书

9. September 4, 20078 Diverse Base of 69M Customers

10. September 4, 20079 Agenda Amazon overview Customer focus Staying in stock on Amazon.com

11. PriceSelection Availability Convenience & Discovery What do Amazon customers care about?

12. Prices

13. Millions of items for sale Hundreds of categories More than 40 ‘stores’ From best sellers to obscure hard-to-find titles Unique Chinese and other international titles Selection

14. September 4, 200713 Availability Even for low-velocity titles, sales of books at 24 hrs > 5 days > 2-3 weeks > OOP

15. Search Inside the Book Fast Track 1-Click ordering ™ Sales Rank Customer reviews Convenience and Discovery

16. September 4, 200715 Agenda Amazon overview Customer focus Staying in stock on Amazon.com

17. September 4, 200716 Breadth of selection Volume of sales Maintaining In-stock Availability in the Long Tail’s “World of Abundance”* Amazon Inventory Amazon Advantage Special Order * Chris Anderson, “The Long Tail,” Wired Magazine, October 2004 长销书（长尾）畅销书

18. September 4, 200717 Consignment program 10’s of thousands of Vendors, 100’s of thousands of titles Advantage is a direct relationship with Amazon.com Online Account Management tools Add any new titles to Amazon.com Ship inventory to Amazon warehouse Prompt monthly payments What is Amazon Advantage?

19. September 4, 200718 Challenges for International Publishers Poor availability message when out of stock Shipping lead time Shipping cost Logistics and storage overhead Cash in inventory

20. September 4, 200719 What is print-on-demand? Fast single copy fulfillment, all to order High quality printing and binding Reliable 24-hour delivery 100% in-stock, all the time Invisible to customers No shipping or logistics cost No inventory risk

21. September 4, 200720 Breadth of selection Volume of sales POD Expands the Long Tail and Enables Publishers to Stay 100% In Stock Amazon Inventory Amazon Advantage BookSurge POD 按需印刷 Expand your sales along the tail Special Order 长销书（长尾）畅销书

22. September 4, 200721 What you need to get started Digital book files (PDF cover and interior) –OR physical book to scan Book metadata 图书信息 The rights to sell in the US market

23. September 4, 200722 Amazon Advantage and BookSurge POD Work Together Initial offset run based on predicted demand Amazon inventory with fail-over to BookSurge POD Sales spike drove sales beyond expectations Amazon inventory quickly depleted but orders filled with BookSurge POD books Not one sale is lost Amazon sales rank soared to top 50!