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Just say “no” to book returns
Back lists, power tool companies, tax evasion, and torn covers
As a leading American book distributor says in one of their FAQ articles:
If you’re new to the publishing world, book returns may be a bit of an elusive concept.
In the United States, many publishers offer a full refund on unsold books. And on books that were sold to a customer, read, and then returned to the retailer for a refund. And on severely damaged unsaleable books. In fact, in many cases, retailers don’t even have to physically send the book back — they just have to tell the publisher they destroyed the book in order to collect a refund.
There aren’t many other industries like this, and a lot of independent publishers and self-published authors make the mistake of trying to follow along with the established practices of the major traditional publishers — and lose money as a result.
How did this come to pass? Why is book distribution so weird and wasteful?
Well, you could blame FDR if you want, or perhaps the creative accountants at a power tool company; there’s an interesting history behind this. At present, it’s an anti-competitive practice that helps an increasingly-consolidated group of major publishers cling to dominance of the (admittedly declining) brick-and-mortar share of the book market.