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Shelf Space vs. Sell Through

April 11, 2012

When you first become a published author there is much to learn about the ins and outs of this sometimes difficult to understand industry.  There are some aspects that seem just plain backwards, particularly for those entering the industry from a business background.  One of the hardest elements to come to grips with is the concept that a sale is not really a sale until it goes through two or three transactions.  This makes calculating expected revenue difficult, to say the least.  Add to that the returns factor (discussed here) and you are left with some confusing data to sort through.

 

If you’re working with a distributor, your distributor is going to sell your book to wholesalers and to retailers.  Wholesalers play a very big role in all of this and it’s not uncommon for the majority of your books to first be sold to the myriad of wholesalers out there, big and small.  (Learn about the difference between a wholesaler and a distributor here).Your distributor will report this is a sale to you and you will be paid for that sale (minus returns and reserves against future returns) but in the more explicit sense of the word, it’s not quite a sale yet. At this point, your book has been stocked in a wholesaler’s warehouse with the hopes that their customers (retailers and libraries) will purchase it from them. 

 

Now the retailers and library customers of the wholesaler begin placing their orders for your book through the wholesalers.  The wholesaler considers each order of your book a sale and will be paid for the books by their retail or library customer for those purchases.  If the purchaser is a library, the cycle is done and you can safely call that sale an actual sale since the book is unlikely to be returned.  If the purchaser is a retailer, however, it’s not quite a sale yet.  Your book is one step closer to really being sold, but at this point, your book has now been given shelf space in a retailer’s warehouse and stores with the hopes that their customers, actual book-purchasing and reading consumers, will purchase it from them.

 

When an actual consumer picks up your book from a shelf and buys it, it is finally sold.  Your distributor will differentiate between the sales to the wholesalers and retailers and the actual consumer sales as “sold in” versus “sold through”.  The sold-through number is what you are both going to want to monitor, especially as it relates to the sold-in number.  A large discrepancy can spell trouble around the bend in regard to returns.  Consumer sell through is reported weekly by Nielsen BookScan and can be obtained through your distributor’s account or through your Amazon Author Central Account.

 

Until a consumer actually buys your book, it is subject to being returned by the retailer or the wholesaler, so keep in mind that the act of being placed on shelves is certainly not a guarantee of sales.   You have two or three more “sales” to make before your book is actually sold through.  Focus on creating demand so those books stay sold.

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From The Archives: Why Ingram Returns Your Books and Then Orders Them Again

April 18, 2011

Originally posted on March 31, 2009.

--------------------------------------------------

One of the most common questions we hear from authors is "Why does Ingram return my books only to order more the next day?" And it’s true: Ingram, the biggest player in the book wholesaling game, will frequently send books back to a publisher’s doorstep only to turn around an place an order a few days later. Why on earth didn’t they just keep them?

All books that bookstores ship back to Ingram are sent to their Chambersburg, Pennsylvania, warehouse for processing and then are directly returned to publisher or distributor of the title. Unfortunately, Ingram does not restock returned inventory. (You can imagine that tracking, inspecting, and restocking undamged returns would be a time-consuming endeavor for an operation of that size.) At the same time, Ingram has to bring in new stock to cover ongoing demand.

Another scenario that creates returns followed by more orders is a shift in regional demand. Ingram has four warehouses serving the country by region (in Pennsylvania, Oregon, Indiana, and Tennessee). If your cookbook is overstocked in Seattle bookstores, but you just did a great local radio tour in the Chicago area, Ingram’s going send the Seattle books back to you while simultaneously asking you for more to cover the new demand in Chicago—no matter how inefficient that seems.

The best way to minimize returns is to balance supply with demand by trying to maintain supply at a level that will sell in less than three months. So, as we’ve told you before, avoid overstocking and subsequent returns by always communicating your marketing and publicity activities to your publisher or distributor.

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What's the Difference Between a Wholesaler and a Distributor?

July 29, 2010

Wherever you are in the process of writing or publishing your book, you’ve probably considered at some point how you’re going to get it out to all of your adoring fans. You might ask yourself: Once I’ve published my book, how will readers find and buy it? Wholesalers and distributors are the two main channels for getting your book into retailers like Barnes & Noble, Borders, and indie bookstores, as well as libraries and schools, but determining how these channels differ and which one is best for your book can be confusing.

Let’s start with wholesalers. Wholesalers like Ingram, Baker & Taylor, and Bookazine are the middlemen between you—the author or publisher—and most major book retailers. These retailers generally order books from wholesalers, which act as depots for your book. Retailers do this because it’s easier for them to order from a small number of trusted sources (wholesalers) rather than hundreds of individual authors and publishers (you). Thus, if you’re looking for national distribution to major retail channels, you generally have to be set up with a major wholesaler.

Although you may be listed with a wholesaler, it’s important to note that wholesalers generally do not market, pitch, sell, or push your book to retailers. Your title sits among thousands of other titles waiting for a retail buyer to take interest and order copies, and unless there is a compelling reason for the buyer do so, it’s unlikely that your book will be brought onto bookstore shelves.

This may be sufficient if you are not planning on marketing or publicizing your book. If, however, you are planning on aggressively marketing your book, you will want someone with connections to the national retail buyers to convince them that your title needs to be ordered from the wholesaler and put on bookstore shelves where consumers can see it, and hopefully buy it. That’s where distributors come in.
Distributors serve authors and publishers in two main functions:

1)    They set up titles with many wholesalers.

2)    They have an active sales force pitching and selling their exclusive line of titles directly to the retail buyers in the hopes of getting as many books as possible on shelves and in front of consumers.

“Why do I need a distributor to set me up with a wholesaler?” you might ask. Many wholesalers have an application process and require a minimum number of titles to be eligible. Ingram, for example, requires publishers or authors to have at least 10 titles before they will make their books available for order; if you have fewer than that, you need a distributor to get you set up in Ingram. You may also wonder, “What’s the benefit of having a someone pitch my book directly to the retailers?” As mentioned above, without someone actively and aggressively convincing buyers that your book needs to be on their shelves, in front of consumers, it will probably sit in a warehouse somewhere, never seeing the light of day. Distributors’ sales representatives often hold a certain amount of credibility in the buyers’ eyes as a trusted source of marketable, salable books. Good distributors and their sales reps are just as invested in selling your titles as you are, and their established relationships in the retail channel give you direct access to the desks of decision-makers at major retail chains.

So let’s recap: You want your book in Barnes & Noble, but you know you need to be listed with a wholesaler like Ingram before that can happen. Because you have fewer than 10 titles and are planning a publicity campaign around your book release, you realize you also need a distributor to get you into Ingram and pitch your book directly to Barnes & Noble. Your best course of action would be to hunt down a distributor who services Ingram and has a relationship with Barnes & Noble.

Clear as mud?

Understanding the fundamental differences between book wholesalers and distributors is important, but equally critical is establishing your distribution and sales goals for the book. If you’re not planning on doing any marketing to consumers and just want your book to be made available for your friends and family, a distributor probably isn’t necessary. If you’re planning on hiring a publicist and doing national media, you probably won’t get very far without one. Thinking carefully about your platform and marketing plans will help you determine realistic goals for your book’s distribution.

Why Ingram Returns Your Books and Then Orders Them Again

March 31, 2009

One of the most common questions we hear from authors is "Why does Ingram return my books only to order more the next day?" And it’s true: Ingram, the biggest player in the book wholesaling game, will frequently send books back to a publisher’s doorstep only to turn around an place an order a few days later. Why on earth didn’t they just keep them?

All books that bookstores ship back to Ingram are sent to their Chambersburg, Pennsylvania, warehouse for processing and then are directly returned to publisher or distributor of the title. Unfortunately, Ingram does not restock returned inventory. (You can imagine that tracking, inspecting, and restocking undamged returns would be a time-consuming endeavor for an operation of that size.) At the same time, Ingram has to bring in new stock to cover ongoing demand.

Another scenario that creates returns followed by more orders is a shift in regional demand. Ingram has four warehouses serving the country by region (in Pennsylvania, Oregon, Indiana, and Tennessee). If your cookbook is overstocked in Seattle bookstores, but you just did a great local radio tour in the Chicago area, Ingram’s going send the Seattle books back to you while simultaneously asking you for more to cover the new demand in Chicago—no matter how inefficient that seems.

The best way to minimize returns is to balance supply with demand by trying to maintain supply at a level that will sell in less than three months. So, as we’ve told you before, avoid overstocking and subsequent returns by always communicating your marketing and publicity activities to your publisher or distributor.

Top 3 Ways to Turn On Any Agent, Publisher, or Distributor

May 17, 2006

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1. Flaunt a big platform.
Size matters in our industry because a big platform is one of the few things that can minimize the risk all publishers and distributors assume when they pick up a new title. In the book trade, a platform is defined as any means that can be used to reach readers directly and pull significant sales. An author with a big platform may have a syndicated column in popular publications, a speaking network that reaches tens of thousands of people every year, a database of newsletter subscribers, or a large base of clients or contacts that can guarantee a notable number of sales. Platforms not only ensure a base number of sales, but also give books word of mouth power that keep sales through other channels moving faster and for longer periods of time. When you submit a proposal to an agent, publisher, or distributor, be sure to highlight your current platform and what you plan to do to make it even more powerful. This should be a huge part of your proposal—it is the number one way to attract interest.

2. Get people to watch.
Open your mind, even if you’re an introverted writer. Since media coverage can propel books onto bestseller lists and into mass public consciousness overnight, agents, publishers, and distributors are looking for media savvy authors with big publicity plans. Let me be more specific: radio interviews are fine, but we want authors with good publicists who have big contacts and a clear plan to land solid reviews and print features, as well as big, national television hits. When you create a proposal for an agent, publisher, or distributor, consider offering details. Specify which publicist or PR firm you plan to hire, budget details, and strategy information: What are your primary media targets? Will you tour? What are your strongest media hooks?

3. Show me your “marketing” package.
Come on, don’t be shy. To sell books into our key accounts, publishers and distributors need strong support for every title, so let us see what you’ve got. Three simple ways to prove that your book has a hungry market waiting for it are to (1) cite comp titles—books that are similar to yours—with wild sales and loyal readers, (2) offer a notable marketing budget in support of the publishers and distributors’ efforts, and (3) propose a marketing plan that is diverse. At the end of the day, even the most connected publicist is at the mercy of reviewers, producers, and reporters to get exposure for your book. Build in some guaranteed results: maybe an online marketing campaign that includes Google Ads and banner advertising on sites that reach your target market, animated book trailers (like movie trailers) to be distributed via email and broadcast in alternative outlets such as airplanes or movie theaters, or creative seeding campaigns to generate pre-publication buzz.

You may have noticed that all three turn-ons relate to marketing. That’s no coincidence. Though most unagented proposals focus almost exclusively on content, marketing is the best way for writers to attract agents, publishers, and distributors, and it is often the element that determines whether or not you get a contract. These three tips assume, of course, that your book is marketable. Publishers and distributors operate in a consolidated industry with an oversupply and underdemand for its products, so we are looking for books that will sell big numbers in a mass-market retail environment. To compete, we need books that will get readers’ attention, and often it comes down to the marketability of the content and the author. When you position yourself in your book proposal, keep this in mind and you just might get lucky.

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