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Boycott! Amazon insurgency spreads to UK

Self publishers of England unite! That appears to be the rallying cry at YouWriteOn.com. The "UK's Leading Writers Website," sponsored by Arts Council England, is the latest to take up the cudgel against the Amazon's new print on demand (POD) policy. Amazon recently changed its policy, requiring publishers who want Amazon to sell their titles directly to use the company's BookSurge POD book printing services.

But unlike others, who have registered public complaints, YouWriteOn.com is initiating a boycott.

It used to be that authors who self-publish and small publishers could use print-on-demand services and have their books sold through Amazon. Customers would click on the "Buy" button and Amazon would get the book from the source and ship it to the customer. That process was great for the self publisher, but inefficient for Amazon, which couldn't just pull the book from stock, and required the customer to wait longer to receive it. On April 1, Amazon began requiring that all print on demand books be printed by its in-house BookSurge business unit if they are to be sold directly by Amazon with its "Buy" button.

Alternately, publishers can sign up for an Amazon Advantage account and Amazon will sell those books, but it keeps 55% of the price - nearly double what some small publishers say they were paying before. That has many small publishers and authors crying foul. Although larger players have been mostly silent on the matter, opposition has been growing steadily.

YouWriteOn.com joins the PMA The Independent Book Publishers Association, The American Society of Journalists and Authors (ASJA) and the Small Publishers Association of North America (SPAN) in filing complaints with Amazon.com. Some complaints have also been filed with the attorney general of Washington State, where Amazon is headquartered.

I asked Edward Smith, manager for YouWriteOn.com, why the group is getting involved in the spat. Here's what he had to say.

What is YouWriteOn.com? YouWriteOn.com is the UK's most popular free site for budding writers. Members review and rate each others opening chapters in a chart system devised by professional authors and each month the five highest rated writers receive free critiques from editors for leading literary agents and publishers. The aim is to help all writers develop and to help talented writers come to the attention of our leading affiliated literary agents and publishers.

What is POD publishing, what types of books are published in that way? Print-On-Demand is a printing process in which a book is stored electronically and a copy of a book is only printed when a customer orders a copy through an online retailer such as Amazon. Anyone can publish their book via POD. The aims of a POD author may range from sharing a book with family and friends or to try to market and sell their book and achieve much wider publishing success.

Why are you opposed to Amazon's new print on demand policy for publishers? We agree with the The US Authors Guild which has hit out at Amazon.com's decision to push print on demand publishers to uses its POD printer BookSurge and is looking at the move for "antitrust and other legal implications". They point out that, "The potential big losers if Amazon does impose greater bookseller discounts on the industry, are authors -- since many are paid for on-demand sales based on the publisher's gross revenues -- and publishers."

A bookseller discount is the amount of the list price that a retailer like Amazon gets as their share for each copy sold for listing a book for sale. Amazon's decision means that all POD writers who want their books to appear on Amazon US will have to pay 55% of the book's list price for each copy sold to Amazon for the privilege, which comes out of their author royalties. Prior to this change, POD publishers and authors could pay a low percentage like 25% to list their book on Amazon. Also, POD publishers in the US will now have to pay Amazon a yearly fee, and the insistence that they use Amazon's printing presses instead of other printing presses means that Amazon are effectively attempting to monopolise the POD industry, and monopolies are never to the benefit of individuals. This will inevitably lead to less choice, less opportunities, and less royalties for POD writers. It is also a red-flag to the publishing industry in terms of how Amazon may use their influence on books from mainstream commercial publishing houses and authors in the future.

You have called for a boycott of Amazon.com. Do you think that will work? We hope it will make a difference otherwise these changes will go ahead to the detriment of writers and literature fans alike. Many organisations like The American Society of Journalists and Authors (ASJA) and the Small Publishers Association of North America (SPAN) are protesting these changes [Editor Note: See ASJA position and SPAN statement]. The POD industry is driven by writers from all walks of life and our call to boycott Amazon is another voice added to this large body of dissent against Amazon's decision.

Amazon says that by keeping POD publishing in house it is creating efficiencies and cost savings that can be passed on to the consumer. Would you agree? No. For example, a higher book discount demanded by Amazon means less royalties for authors, this will discourage many talented writers from printing via POD, which means less consumer choice for book readers. POD book prices for readers will also likely rise to compensate for Amazon's increased charges to POD companies and their authors.

You say that Amazon is attempting to "monopolize" the market for print on demand. Amazon's total market share is by some sources only about 15%. By insisting that all POD publishers print their books through BookSurge, Amazon's printing company, and on a higher bookseller discount, Amazon is using their influence to dictate terms to the POD industry and to authors. If one company attempts to 'control' the printing presses then this inevitably stifles competition, choice and innovation and leads to rising prices for both POD publishers, authors and book readers. It's the bookworld equivalent of Bill Gates and Microsoft.

Who stands to lose the most from the new Amazon policy? Writers and readers alike stand to lose out from the decision. Writers will have less royalties, and readers will find that increased charges by Amazon are reflected in increased book prices. It is also a red-flag to the publishing industry in terms of how Amazon may use their influence on books from mainstream commercial publishing houses in the future.

Can you give me an example of how this policy would negatively affect one of your consituents? YouWriteOn.com has helped writers achieve success with mainstream commercial publishers like Random House, but we have also assisted writers who were not able to find agents or publishers by publishing them through POD. One of our inaugural 2007 Book of the Year writers, Patricia J. DeLois, was not able to find an agent or publisher for her novel Bufflehead Sisters, so we published her through POD. She sold over 1,200 copies of her book during Christmas 2007 and was named the best book of the year in her home state of Maine in a newspaper poll of librarians and readers ahead of a former Pulitizer Prize winning writer. As a result of that, Patricia was then successful in getting an agent and now is under consideration for a two book deal by a major publishing house. Amazon's decision on bookseller discounts means that new writers like Patricia will get considerably less royalties through POD. It also means that many readers will pay more for new books which will stifle the opportunity of new writers like Patricia to be enjoyed and read. We ask Amazon to take a step back to their roots and work with writers and not against them and the interests of readers.

What People Are Saying

Rate this
Rated -14
474 Votes

What Amazon is doing is

What Amazon is doing is wrong and it's good that there's such a fuss over the net about it. I buy from Amazon (In the UK) quite a bit and they provide a good service, however this could be thin thin end of a very dangerous wedge and hopefully it will be stopped before it starts.

On an aside can you get your facts right when writing? England and the UK/Britain are not the same thing. England is only a part (albeit a very big part) of Britain.

Rate this
Rated -6
522 Votes

Good for Amazon.com

"That process was great for the self publisher, but inefficient for Amazon, which couldn't just pull the book from stock, and required the customer to wait longer to receive it."

Amazon.com's move is good for customers.

The Amazon.com Monopoly Argument is just plain silly.

POD writers should be thankful that Amazon.com sells their books at all.

Rate this
Rated -9
507 Votes

The Previous comment sounds

The Previous comment sounds like the high and mighty amazon representative that called me to move our companies books over to them from lightning source. The person sounded like it was a privilege to have our books on amazon. Our company may have to lay off full time workers if amazon gets their way with this new policy. The reason for possible lay offs is we would be making significantly less profit per book if we were forced to sign up with booksurge.

Rate this
Rated -2
510 Votes

Bad for Amazon

Amazon will likely succeed in increasing their dominance in the short run but they are not the only game in town. If an author cannot come to terms with Amazon then inovative authors will not be appearing on Amazon, devaluing the Amazon brand.

Other brands will take on the good authors at terms similar to today's market and strengthen their brand. Strong competition for Amazon will mean we all win.

Even the smallest POD authors will benefit from this competitive market since they will have a strong alternative to Amazon.

Rate this
Rated +8
498 Votes

I am having the same problem

I am having the same problem as the previous person. Having been able to successfully live off of my income as a self-publisher, I will be forced to seek employment outside of running my own publishing company if amazon either removes my books or forces me to sign up with them which would mean making 20% to 40% less income. For the past two years I have been able to live off of the six different books I have written and published with Lightning Source, this will no longer be possible if amazon has their way.

Larry

Rate this
Rated 0
490 Votes

Advantage might be an option

Hi Larry,

Someone else at a fulfillment house tells me that you might want to at least try the Advantage program, as you might see an increase in the number of titles sold. It doesn't cost much to sign up, this person says, and while you need to supply Amazon with a small inventory of books to get started, they almost never come back. This person says most of the small publishers she works with see an increase in sales. Whether the increase in sales would be enough to make up for the increased Amazon cut I can't say.

I also can't vouch for the statement made by the fulfillment house, but you might want to ask around among people who use the Advantage program if Amazon's decision stands.

Rate this
Rated +6
460 Votes

oh pleeeaasse...

Robert sounds like a tried-and-true Amazon rep.

I run a small publishing company that, under a special circumstance, listed one of our titles through the Amazon Advantage Program. We had to give Amazon 55% off the retail. We were only allowed to ship a very few books at a time ... shipping expense all ours. It took forever to receive payment.

OUR EXPERIENCE ... pay shipping, give Amazon a bigger cut than our regular wholesale distributor ... wait forever to get payment per book sale. We quickly discovered that Amazon Advantage was an unresponsive, greedy source that stripped all of our profit per book sold.

Oh yea...

When we went through the many hoops to request the removal of this same title from Amazon...it took over a month for them to respond. 2 months later, this particular title had YET to be removed from their site and our remaining inventory has not been shipped back to us.

Contacting Amazon for help or answers? Forget about it. No live person from Amazon will help you unless you are asking about a book order. Otherwise...you are given an email address, if you press them, that supposedly contacts the Amazon source that can resolve your issue. You use the email address given. You MAY get a response a few weeks, or more than a month later...with an email that tells you that you have to use ANOTHER email address for your issue. Then the whole cycle starts again.

Robert, I'm glad you suggested that authors / publishers contact other Amazon Advantage users. I think that will suffice.

Rate this
Rated +17
477 Votes

Amazon Advantage is not a

Amazon Advantage is not a feasible option. Even with signing up for that program, Amazon demands such a huge cut of the profits that it is plainly not worth it. I've been laboring for a significant number of months on two new titles, one being a follow up of a previous popular publication. I've halted my writing of both books due to the uncertainty that Amazon is creating in this industry. It is a very depressing position that I feel I am in; being backed into a corner and being bullied by a much larger company than mine.

Larry

Rate this
Rated +10
488 Votes

I am under the impression that

...before Amazon self publishers really had few choices, and that Amazon helped open up the market for the little guy. Most retail operations take similarly hefty chunk of the pie, do they not?

Before the new policy how much of a discount was Amazon taking for POD books it was selling for you through its Buy button?

Rate this
Rated +14
452 Votes

Past good doesn't negate present evil

Yes, Amazon was a help to many small presses. But that doesn't make it right for them to put the thumbscrews to them now. Most retail operations, in my experience, do NOT take a similar chunk of the pie. Depending on the book and expectations for it, I offer anywhere from a 35% to a 45% discount to wholesalers.

One big problem with this is that Amazon, since it buys directly from the printer instead of through a wholesaler, will get a wholesale price that is 20-25% lower than the brick-and-mortar booksellers, and will use that extra discount to undercut the smaller stores... while disallowing the publisher from selling his/her own book at a discount.

Yes. If the book retails at $10, Amazon will purchase it for $4.50, and may discount it down to $7.50, still making money. But the publisher is restrained from offering the book for less than full retail! So Amazon is allowed to undersell even the publisher!