Amazon Insists Publishers Use Their On-Demand Printer
Lawrence Person writes "According to a story up on Writer's Weekly, Print on Demand publishers are being told to use Amazon's own BookSurge POD printer or else Amazon will disable the 'buy' button for their books. After hemming and hawing, an Amazon/BookSurge rep 'finally admitted that books not converted to BookSurge would have the "buy" button turned off on Amazon.com, just as we'd heard from several other POD publishers who had similar conversations with Amazon/BookSurge representatives... their eventual desire is to have no books from other POD publishers available on Amazon.com.' So much for Amazon's Vision Statement: 'Our vision is to be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.'"
They are very useful for technical or specialized material that has a small audience. It's a way of keeping a book in-print without spending large amounts of money. I'm grateful when I can buy a POD copy of a book at a reasonable price, when a used copy would otherwise be priced at ridiculous levels. Equating POD with vanity publishing is extraordinarily short-sighted.
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You're conflating POD with self-publishing. Lots of big, established publishers use POD as one of their methods of production. It's not uncommon these days for a publisher to keep a novel in print in paperback by producing 300 units at a time via someone like Lightningsource.
I'll agree with you that self-publishing is full of scams. But: "This will net you a quality book!" Well, when you're talking about "quality" with respect to a novel, the big issues aren't layout and cover design, the real issue is whether the writing is any good. That has nothing to do with methods of production and everything to do with editorial standards.
Self-publishing can be fine, as long as you go into it with realistic expectations -- i.e., you don't expect to make any money. AFAICT, 99% of self-published books don't reach an audience. The other 1% reach an audience, but aren't profitable.
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Wrong. Don't confuse POD with vanity publishing. It is possible to directly self-publish a book through a major distributor without a fluffy middleman, My book www.essentialretro.com and hundreds of thousands of others are published on demand through Lightning Source, a division of Ingram (one of the largest book distributors). It costs a mere $12 a year to list in the Ingram catalog (which gets my book onto Amazon) and I earn around 35% of each book sold, with the rest going to pay LSI for printing and fulfilling the book and Amazon for selling it. Amazon maintains a small inventory of my book to ensure that it's available to ship "within 24 hours" and they automatically order more from LSI when they run low. The system works very well and I don't have to do anything to keep my book in print.
Amazon's standard percentage for each sale is a whopping 45% (I've specified a "short discount" of only 35%, which they somewhat grudgingly accept). I investigated Booksurge in the past, and it has several significant shortcomings. First, it would result in me earning about 10% less per book sold, they offer a smaller number of trim sizes and distribution through normal channels is nowhere near as comprehensive as Ingram/LSI (who allow my book to be special ordered at nearly all bookshops). Personally, I'll start directing traffic to an Amazon competitor instead - Barnes & Noble offer me the same terms. Amazon can go take their proprietary system and get stuffed.
I find this move by Amazon to be disturbing. Are they a distributor or manufacturer? Until recently, Amazon was simply a retail hub for nearly any product I might be looking for and they were happy to sell it to me. I could search for the best product and know that Amazon was a reasonable place to look for a good price with quick delivery and great service. I was so confident that I would be spending money with them that I gladly paid the Amazon Prime pre-paid shipping and have saved money each year since that program began because of it.
Now there appears to be a shift: Amazon has produced the Kindle and now are, in essence, the publisher of at least 100K titles. They also produce the reader, the Kindle itself. They now have a competitive stake where they were previously just "honest brokers." What happens when two years from now an electronic book system comes out that blows the Kindle away? Does Amazon shun it? Do they do more? Must we now expect Microsoft-like tactics for any technology competitor to the products that Amazon develops or acquires? It isn't just that something might not appear in the Amazon store; I now worry that more active anticompetitive actions may be in the offing now that Amazon has begun down this path.
We recognize when Walmart, the nation's largest retailer, throws their weight around. That makes the evening news occasionally. Our view of Amazon to this point has been only through their web site, stock price, and that little box that arrives occasionally. I fear we may be seeing more of Amazon than that--and it isn't a good thing.
That argument might work if amazon were just targeting the small POD companies. In fact, they seem to be targeting some of the customers of the largest POD company, Ingram LSI.
Ingram are a major book distributor, and LSI can supply any of about half a million books straight into the distribution chain to both "bricks and mortar" bookshops and to online sellers like amazon. This massive catalogue includes large numbers of specialist academic titles from university publishers. The customers buying these books will often have no idea that they're being printed on POD technology rather than litho. In fact, if you buy an individual POD book through amazon, and it's printed by one of the larger printer/distributors like LSI, amazon may not actually ever see the book themselves. Their computers pass on the order and the payment to LSI, and LSI package it up in a nice amazon box and send it directly to the customer. With POD printing/distribution, not only do the nominal publishers not have to worry about warehousing and handling stock, neither do the online booksellers. It's a good system, that puts some of the more traditional distribution systems to shame. Laser-printed POD-technology books work out significantly more expensive per page than litho printing, so for "popular" titles, litho is still the way to go ... but for the established academic presses that might have tens of thousands of "niche" books in their catalogues, migrating them to POD makes a lot of sense.
At this point in the story, almost everything in the garden looks happy. LSI are the largest most integrated supplier but have fixed printing options that don't please everyone: smaller specialist POD companies take up the slack for more specialist POD print jobs that require more human intervention: unusual sizes or cover options, foldouts, inserts, prestige paper, special inks, that sort of thing. Vanity publishers and print-your-own-book services run their own in-house POD printing plant rather than subcontracting, to keep the business in-house, as do certain other speciality publishers. Each has their own niche.
Where the business shakedown started to happen was with the larger independent POD/distribution startup companies that didn't have the niche business of the smaller companies, and couldn't compete with the slickly integrated production service offered by LSI (whose parent company, Ingrams, is one of the most important book industry corporations). One of these companies, "BookSurge", was ambitious, and had the print plant, but had trouble actually getting companies to sign up with them. What they offered wasn't as good as the larger LSI, or the smaller specialist companies. There was no obvious niche for them. So amazon saw an opportunity and bought them out.
And now amazon run their own print-on demand service built around BookSurge.
Snag is, it's not really all that good. It can't offer the flexibility or customer-friendly service of the smaller POD companies, and it can't achieve economies of scale or better integration than LSI, because LSI already take orders directly from the Amazon systems and ship direct. So amazon don't get any additional "process efficiency" by having books printed by their own POD company rather than LSI. What they do get is an extra share of the profits from being the printer and distributor as well as the seller.
Trouble is, that argument only works if their printer-distributor company actually //makes// money, and while Booksurge has had great publicity, it turns out that it doesn't actually seem to offer a sufficiently compelling service for enough people to want to sign up for it. Even with the amazon name behind them, they simply aren't sufficiently competitive.
And so, we have this new development that BookSurge sales reps have started making up lists of
Eric Baird